10% Down requirements

[William Blaker]

Hello everyone, very first post. We're looking to get our first property this year. My question is simple: IF we utilized the vacation home option and put 10% down, does the requirement of staying there 14 days a year go away once 20% of the principle is paid on that loan? Or would we have to refinance and change the terms?

Thank you for your expertise. 

[Jeff Chisum]

IRS rules get mixed up with second home occupancy loan policy. For the 10% down second home occupancy loan there are no maximum days you have stay in the property. Your intention has to be that you will occupy the property "at some point" during the first year. There is a maximum amount of days you can stay in it and stay within the limits of IRS rules that take it from business use property to personal. Check with a CPA on the specific rules. After one year you are released from the occupancy requirements and could do a long term lease. Top 5 LO in the US for STR financing originating in the US.