Updated over 4 years ago on . Most recent reply
STR vacation vs conventional loan
Hello BP community.
I was wondering what everyones stances are with the 10% vaca loan vs the conventional 20% or higher loan. 10% sounds great, and I'll be able to vaca there to meet whatever the req. is for block out dates - but my concern is liability. I could toss is under an LLC if I went conventional. Didn't know if there is more of a risk with vaca or not. A lot to weigh. Thought? : )
Most Popular Reply
You actually cannot put it in an LLC on any type of conventional loan. You can on commercial, portfolio, or DSCR. There are 15% DSCR loans that you can get that have no requirement for any sort of personal use, and you can close them right in an LLC. That's becoming the most popular way to finance STR's. The Mortgage Shop has those I believe.