Investment property with less than 20% down

[Angel Hernandez]

Hello everyone,

I came across a property that I am

Interested in owning and renting out with Airbnb. However I do not have 20% to put down. The owner will not consider any sort of creative financing. I am considering renting rooms out, but will benefit the most with renting the entire place. I don’t want to take on a partner to assist with the 20% down. What will be the best way to go about this?

Thank you in advance.

[Nicholas Covington]

Here are the rules for a "Secondary Property" per Fannie Mae

Second Home Properties

The table below provides the requirements for second home properties.

  1            

✓	Second Home Requirements
	must be occupied by the borrower for some portion of the year
	is restricted to one-unit dwellings
	must be suitable for year-round occupancy
	the borrower must have exclusive control over the property
	must not be rental property or a timeshare arrangement1
	cannot be subject to any agreements that give a management firm control over the occupancy of the property

If the lender identifies rental income from the property, the loan is eligible for delivery as a second home as long as the income is not used for qualifying purposes, and all other requirements for second homes are met (including the occupancy requirement above). 

In laymans terms: you can still "rent" the property as long managed by a property management company and that there is no rental agreement that would prohibit you from spending the night pretty much. Aka Airbnb would be perfectly fine.