Mortgage for duplex as a Secondary/vacation home in Alabama

[Adam A.]

Hi everyone, I've recently got a bank owned two unit duplex under contract in Gulf Shores Alabama. Plan is to occupy one unit as a vacation/second home and rent out the other unit as a short term rental. All the lenders I have talked with are treating this as an investment property instead of a Second home and are requiring us put 25% down. We are hoping to find a conventional lender willing to lend at 15% down that may need to portfolio the loan if Fannie Mae won't allow for duplex second/vacation home properties. We're not looking for any hard money lending or rates that exceed 5%. Any one have any suggestions or good contacts in Alabama?

[Chris Mason]

Originally posted by @Adam A.:

Hi everyone,
I've recently got a bank owned two unit duplex under contract in Gulf Shores Alabama. Plan is to occupy one unit as a vacation/second home and rent out the other unit as a short term rental.

All the lenders I have talked with are treating this as an investment property instead of a Second home and are requiring us put 25% down.

We are hoping to find a conventional lender willing to lend at 15% down that may need to portfolio the loan if Fannie Mae won't allow for duplex second/vacation home properties.

We're not looking for any hard money lending or rates that exceed 5%.

Any one have any suggestions or good contacts in Alabama?

Fannie/Freddie/FHA/etc does not acknowledge the existence of multi unit second homes. :\