I am wondering what is the lowest down payment product that anyone has heard of for a vacation rental/ home. Well aware of the pitfalls of vacation homes but I figure if the numbers worked and I get it when it's not rented it's something worth looking into. Thanks in advance!
If you buy it as a second home through Fannie Mae, you will need to put 10% down and you must occupy the home for a min. of 15 days a year. After that, what you do with it is up to you?
A vacation house is like your primary house, so the down payment (5%) and interest rate will be the same as primary house. Rental property will be to be 20%, while a duplex will need 25%.
It also depends on the area. In Hawaii, they require 30% down for investment properties.
Thanks so it sounds like the magic number is 10% generally