10 percent down FHA vacation loans

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10 percent down FHA vacation loans

David N.
Member since 2021 · 59 posts · 16 votes

Does anyone know if the conventional FM/FM 10 percent down loan for vacation properties is still available? This is mentioned in Avery Carl's book but it was published in 2015. And if it is available, can PMI be avoided at 10% or do you still have to do 20 to avoid that? Thanks in advance....

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  • David N.
    OP
    Member since 2021 · 59 posts · 16 votes
    2y

    never mind on the part about PMI - Carl specifies that later in the book....

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    2y

    It's not FHA either, it's conventional.

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  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    I know there are still 10% second home loans available as my clients have been getting approved for them as recent as this morning.

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
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  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    2y

    It's hard to get pre-approved for a 10% down if you're a new investor with no other properties. Many laws have changed since Avery's book was published, that have made it difficult to purchase another property besides your personal residence. If you're a brand-new investor with only a personal residence with only 10% down and would like to purchase property sooner rather than later; creative financing may be an option for you. 

    [email protected]330-557-3021
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  • Jeff ChisumPro Member
    Lender · All 50 States · Member since 2020 · 248 posts · 142 votes
    2y

    100% of my business is helping clients in all 50 states with purchasing vacation homes/STR properties. 90% of my clients use the 10% down loan because the lower down payment requirement and rates/cost similar to a primary residence. We have a unicorn product that most lenders don't have access to and gives us this pricing ability. PMI is relatively low. .2-.23 for most of my clients. After two years you can get rid of PMI potentially with a new appraisal.

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