Funding for an Airbnb

[Richard Pallarino]

Hi BP Fam! My brothers and I are trying to buy an Airbnb in Florida. We keep getting stuck as we have the cash to put 10% down plus closing costs and 6 months worth of reserves. However, we don’t have it in one account and each lender keeps telling us we need to have $16K from each person as a gift, but it's just 3 of us and we need $140K which exceeds our $16K per 3 people gift limit. My question is, how do we get the money in one account to qualify for a 10% down payment as a second home for the Airbnb property?

Thanks,

Rich

[John Underwood]

So your asking how to get funding for a house or condo to use as a STR.

Banks are loaning on the value of the residential property.

You are trying to get a 2nd home loan with 10% down. A 2nd Home is for one person or a couple. 

That is why the banks are wanting to have the other downpayment amount gifted.

So you need to have 20% down for an investment property that you are buying with partners.