Can I buy another "second home" for STR with 10% down?

[Anand Khanna]

My wife and I own a "second home" in Reno Nevada which we purchased with 10% down and were planning to purchase another one, but our lender told us that we can't get another loan for a second home within ~100 mile radius of an area where we already own a second home/primary residence. Wanted to check if that is true and if it is just lender specific or are there any legal laws around it.

Thanks

[Robin Simon]

Quote from @Anand Khanna:

My wife and I own a "second home" in Reno Nevada which we purchased with 10% down and were planning to purchase another one, but our lender told us that we can't get another loan for a second home within ~100 mile radius of an area where we already own a second home/primary residence. Wanted to check if that is true and if it is just lender specific or are there any legal laws around it.

Thanks

 The rules are generally pretty vague - for the 10% Down Second Home Loan - generally are supposed to be not an investment property (no more than half the year rented out, no property management) and the vicinity rule is not super clear - but you are supposed to live "near the property"

There won't be a difference among lenders since this is a GSE backed product (all rules the same) - however, the difference is likely to come from the interpretation of how close "near" means

This is a good twitter (X) thread on the topic from a lawyer thats in the space

https://twitter.com/Wildlaw406/status/1689416363973214213