Investor Friendly Lenders for 10% Down Vacation Home Loan in Vermont?

[Daniel Gale]

Has anyone recently used a lender in Vermont where they utilized the 10% vacation home rental loan option for a short-term rental? Looking to find a lender that is investor friendly and has experience using this with investors who plan to rent out the property as an STR, while also ensuring they comply with the rules to utilize this loan.

Appreciate it!

[Jon Martin]

The general consensus is that 10% down loans no longer make sense in most situations because they add so many points that it depletes the purpose. If you are paying an additional 4-5 points, then you may as well get some equity for it and do a 15% down loan. These are Fannie Mae rules put in place in response to the flood of these loans for STR investors.

That said, DYOR and ask around. I've found that I often get options for lenders that go against what I hear from the "consensus", so don't take any single person's word for it.