Vacation home Loans- 10-15% down vs. DSCR

[Devon Harris]

Hello Bigger pockets members. Anyone have advice on mortgage lenders that provide 90%LTV in Ms for a vacation home loan?

[Zach Wain]

You can put 10% down on a second home, that is fine for conventional. Rates and fees will be high right now no matter what you do. What everyone forgets to mention (because people like to sell DSCR loans), is the majority of DSCR loans have prepayment penalties. So even if the overall payment and costs are not that different, throw a 3 yr Pre payment penalty into the mix for a DSCR loan and that is a show stopper for me.

If you can go conventional, do it!  Better overall terms, just find the right lender with competitive pricing.