Loan options for second home/vacation home

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Loan options for second home/vacation home

Member since 2022 · 19 posts · 12 votes

Hello BP fam,

I currently am looking at a possible loan for a vacation home out of state. I live in CA and buying in TX.

This is the scenario using a full doc loan with FICO of over 726 and $$K reserves, verifiable income of 70K a year, this is what I got back.

Can be Approved for up to 300k using rental income of the property in question, with a %15 down and interest of 6.8 and I still need to pay for points.

I feel this might not be the way to go, Is there another way to go about this or are there any loan officers here that can give me something better to work with.

or am I completely out of my mind and this is a great deal ;)

Like always thank you for the feedback.

Learning and growing here :)

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Tony Severance

Lender · Fort Worth, TX · Member since 2022 · 90 posts · 37 votes

@Erika Calderon Based on the quote you received, it appears you are buying a single family home. Is this assumption correct? Both @Jay Hurst and @Dave Skow have brought up very good items to consider as part of this equation.

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Jason WrayPro Member
Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
3y
Hi Erika,
You can go Portfolio with 10% Down with No Prepay & No PMI. Rates are always better with a tue protfolio program as well.
[email protected]727-637-4289
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Jay HurstBusiness Member
Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
3y
Quote from @Erika Calderon:

Hello BP fam,
I currently am looking at a possible loan for a vacation home out of state. I live in CA and buying in TX.
This is the scenario using a full doc loan with FICO of over 726 and $$K reserves, verifiable income of 70K a year, this is what I got back.
Can be Approved for up to 300k using rental income of the property in question, with a %15 down and interest of 6.8 and I still need to pay for points.
I feel this might not be the way to go, Is there another way to go about this or are there any loan officers here that can give me something better to work with.
or am I completely out of my mind and this is a great deal ;)
Like always thank you for the feedback.
Learning and growing here :)

@Erika Calderon You are being quoted an investment property. The LO thinks you need the rental income on the subject property to qualify which you can do on a investment property but you CANNOT on a second home/vacation property.
Hurst Real Estate, INC4.991 Reviews
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Gordon CuffePro Member
Investor · Roseville, CA · Member since 2009 · 1k+ posts · 584 votes
3y
@Erika Calderon If it is a true vacation home ,there is not rental income. I am a mortgage broker in CA and that is actually a good rate for only 15%. You might ask if mortgage insurance is added to the payment. If it is a vacation home , you can put down 10% but the interest rate will be higher.
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Dave Skow
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
3y
@Erika Calderon- thanks - fyi - pricing for vacation homes is similar to rental property loans .... is the 300K loan amt ample for what you want to buy in TX ? is this lender able to approve the 300K taking into account your present loan / present debt/ and new loan on the 70K income ? Buying the TX property as a rental might allow a higher price / loan amt as you can offset part of the new payment with rental income for new property- good luck
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Tony Severance
Lender · Fort Worth, TX · Member since 2022 · 90 posts · 37 votes
3y
@Erika Calderon Based on the quote you received, it appears you are buying a single family home. Is this assumption correct? Both @Jay Hurst and @Dave Skow have brought up very good items to consider as part of this equation.
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