New to Real Estate · Rialto, CA · Member since 2020 · 2 posts · 0 votes
Hello everyone. I'm currently seeking a vacation home lender to be able to put down 10% on a STR in Joshua Tree. I understand that the property has to be used by the owner at least 14 days out of the year, but are lenders usually okay with it being used as a short term rental as well? I'd obviously be transparent about it with the lender to avoid problems down the road, especially once acquiring the loan and the property. Any references/information on this matter would be greatly appreciated! Thanks in advance.
Hello everyone. I'm currently seeking a vacation home lender to be able to put down 10% on a STR in Joshua Tree. I understand that the property has to be used by the owner at least 14 days out of the year, but are lenders usually okay with it being used as a short term rental as well? I'd obviously be transparent about it with the lender to avoid problems down the road, especially once acquiring the loan and the property. Any references/information on this matter would be greatly appreciated! Thanks in advance.
You'll likely have to pay PMI every month until you can get 20% of house paid off or until house appreciates enough.
Hello everyone. I'm currently seeking a vacation home lender to be able to put down 10% on a STR in Joshua Tree. I understand that the property has to be used by the owner at least 14 days out of the year, but are lenders usually okay with it being used as a short term rental as well? I'd obviously be transparent about it with the lender to avoid problems down the road, especially once acquiring the loan and the property. Any references/information on this matter would be greatly appreciated! Thanks in advance.
you might have to put more down & your interest rate will definitely be higher. this is what i have found to be true in my experience. more experienced people will be along to answer, i am sure.
From my understanding you have to visit 2 weeks out of the year and you can’t hire a property manager. I just purchased a place in JT and happen to chat
Hello everyone. I'm currently seeking a vacation home lender to be able to put down 10% on a STR in Joshua Tree. I understand that the property has to be used by the owner at least 14 days out of the year, but are lenders usually okay with it being used as a short term rental as well? I'd obviously be transparent about it with the lender to avoid problems down the road, especially once acquiring the loan and the property. Any references/information on this matter would be greatly appreciated! Thanks in advance.
You'll likely have to pay PMI every month until you can get 20% of house paid off or until house appreciates enough.
I just bought an STR in Kissimmee (near Disneyworld) with a vacation home loan 2 days ago. Wanted to get the 10% down loan, but the 3.25% rate I got for a 20% down was just too good to pass up. I told the lender I was planning to use it as a vacation home but to STR it when we weren't using it. My lender said the 14-day rule is not a hard-and-fast rule, just my "intention" to use it as a vacation home. Also, I plan to use a property manager when I'm not using my vacation home. She said as long as I'm not "required" to use property management (like a condotel where you're required to use their management as a condition of buying there), then I'm good.
I just bought an STR in Kissimmee (near Disneyworld) with a vacation home loan 2 days ago. Wanted to get the 10% down loan, but the 3.25% rate I got for a 20% down was just too good to pass up. I told the lender I was planning to use it as a vacation home but to STR it when we weren't using it. My lender said the 14-day rule is not a hard-and-fast rule, just my "intention" to use it as a vacation home. Also, I plan to use a property manager when I'm not using my vacation home. She said as long as I'm not "required" to use property management (like a condotel where you're required to use their management as a condition of buying there), then I'm good.
im FLOORED you got a 3.25% rate!!!!yay! especially on second/vacay place. I started looking in Sept & had 2.6% rate and now i’m at a 3.75% :(, but only because i dont want to buy points and keep closing costs down. its brutal out here in socal.
Hello everyone. I'm currently seeking a vacation home lender to be able to put down 10% on a STR in Joshua Tree. I understand that the property has to be used by the owner at least 14 days out of the year, but are lenders usually okay with it being used as a short term rental as well? I'd obviously be transparent about it with the lender to avoid problems down the road, especially once acquiring the loan and the property. Any references/information on this matter would be greatly appreciated! Thanks in advance.
Hi Mathew, I am a lender in CA and we handle a lot of second home loan financing, which can be done either as 1 loan up to 90% LTV or to break up to two loans to remove some of the larger new hits (LLPAs) Fannie Mae has imposed on 2nd home loans , a 70 1st and 20 2nd or 75-15% are both good options.
My understanding is that these types of loans require 20% down in order to use projected cash flow toward qualification. Meaning, the property can debt-service itself making qualification very easy... well, besides for the 20% down.
And like others have said, less than 20% down, rate is going to be up there and there will likely be MI. Both of those will cut into your cash flow.
Hey Mathew! My husband and I purchased a property in Yucca Valley (JT area) with a 2nd home loan back in September, if you shoot me a message with your email I can connect you with the team I used!