Financing a Cabin/Vacation rental

[Alex Guerra]

Hello All,

I recently found a property located in South Texas. It's 2.5 acres with 130' of riverfront property and a 2 bedroom 1 bath cabin on the property. I was considering moving out there or using it for a vacation rental when I work out of town. I tried to get approved from a lender and they approved me but then looked at the house and told me that they do not finance cabins. I asked them if they knew any other lenders that do and they couldnt help me out. Is this very common for lenders? Why would they not want to finance a "cabin"? Any help or advice would be greatly appreciated. This is a once in a lifetime deal with 4 other people looking at the property. Thanks in advance.

[Maura Paler]

Did you apply with a local lender? Is this off grid (some banks won't finance homes with no power). 

My understanding is a local bank is more likely to finance a local cabin. 

We have loans on 3 vacation rentals, 2 are cabins, one is a farmhouse. We are in process of working on a 4th loan, for an off grid riverfront seasonal cabin that only one of our lenders - the local one - is willing to finance due to their understanding of the area and our history of successful rentals (proven via our tax returns). 

Hope this helps.