10% Down Payment Vacation Home Loan

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10% Down Payment Vacation Home Loan

Evan O'Brien
Sayville, NY · Member since 2021 · 126 posts · 34 votes

When looking to utilize a 10% down payment vacation home loan to purchase a STR, is this type of loan usually offered by conventional lenders? Or will portfolio lenders also offer this type of loan product? Any information would be greatly appreciated! And is there a way to access a list of lenders that offer 10% down payment vacation home loans?

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Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
4y

When it comes to lending there is a difference between a “second home” and a “short term rental. The latter being a tradition investment loan regardless of short or long term rental. 

Yes any broker can do either loan but it doesn’t mean it’s in their wheelhouse. Always ask your loan person how many of what type of loans they’ve done recently, and how many closed in the state you’re looking to close in. It’s best to use someone who is repeatedly doing what you’re trying to do

Don’t go to an eye doctor for hand surgery. although doctors are usually smart enough to tell you it’s not what they do. 

Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y

    @Evan O'Brien

    Right now you will find it difficult to find a loan with only 10% down. Have you checked @Upen Patel as he has some products that could meet your criteria

    7e investments53 Reviews
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  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    4y

    When it comes to lending there is a difference between a “second home” and a “short term rental. The latter being a tradition investment loan regardless of short or long term rental. 

    Yes any broker can do either loan but it doesn’t mean it’s in their wheelhouse. Always ask your loan person how many of what type of loans they’ve done recently, and how many closed in the state you’re looking to close in. It’s best to use someone who is repeatedly doing what you’re trying to do

    Don’t go to an eye doctor for hand surgery. although doctors are usually smart enough to tell you it’s not what they do. 

    Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
    4Reply
  • Upen PatelPro Member
    Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
    4y

    @Evan O'Brien Which technically you can get a Fannie/Freddie 2nd home loan with just 10% down, good luck finding any workable rate/points. Rates for 2nd home and investment properties are very very bad right now. My bank has launched a portfolio loan that would allow a qualified individual to buy a 2nd home loan with just 5% down, No MI and very attractive rates.

    [email protected]571-200-6180
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  • Michael Plante
    Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes
    4y
    Quote from @Upen Patel:

    @Evan O'Brien Which technically you can get a Fannie/Freddie 2nd home loan with just 10% down, good luck finding any workable rate/points. Rates for 2nd home and investment properties are very very bad right now. My bank has launched a portfolio loan that would allow a qualified individual to buy a 2nd home loan with just 5% down, No MI and very attractive rates.


     What do you consider very bad rate?

    4.9% this week for 100% of purchase price (80% of appraised value) vacation home after owning for 2 months with 10k spent to fix up.  

    So I guess you could say it was a BRRR on a vacation home?

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  • Mel Adams
    Investor · San Diego · Member since 2021 · 86 posts · 91 votes
    4y

    If you can, use an agent who works with a lot of investors. They should have lenders they recommend who have experience with 10% down. That’s how I found mine! 

    1Reply
    • Nathan Frost
      Rental Property Investor · Wichita Falls, TX · Member since 2018 · 353 posts · 79 votes
      11mo
      Quote from @Mel Adams:

      If you can, use an agent who works with a lot of investors. They should have lenders they recommend who have experience with 10% down. That’s how I found mine! 


       What lender did you use?

      0Reply
    • Jon Martin
      Member since 2022 · 1k+ posts · 1k+ votes
      11mo
      Quote from @Nathan Frost:
      Quote from @Mel Adams:

      If you can, use an agent who works with a lot of investors. They should have lenders they recommend who have experience with 10% down. That’s how I found mine! 


       What lender did you use?

      FYI you are replying to a 3 year old post. 

      Most mortgage brokers should be able to find a 10% down lender for you. 
      0Reply
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