Destin, FL STR Funding

5 Replies

Who do you know with reasonable terms, for unusual 2nd home property in Florida? My drawl to a beach house was second home financing terms through a conventional loan and the fact that it can still be rented out. However that won’t cover a duplex and a duplex seems ideal as we will only have to rent out & ‘share’ half the unit. Who have you used? 

Thanks- I spoke to the main credit union there & the girl was clueless. They ‘finance no 2nd homes’ & when I questioned doing it under a commercial loan I think she thought I misspoke 😑 waiting on a call back from her manager. I have a feeling I will have to call back. 

@Jessica Burrell I have several recommendations in this market. However, I don’t think you can do 10% vacation home loan on a multi unit, only single family. Fannie minimum on a duplex is 25%.

@Jessica Burrell Raymond and Avery are correct. You can't finance a second home via conventional mortgage types if you are going to do short term rentals. You'll likely have to put down 20-30% depending on the product. When calling around, ask lenders if they have a portfolio loan product for short term rentals. The portfolio loan will stay in house with the lender and won't be sold off to Fannie or Freddie, so they have more flexibility in what they can and can't do.

I will send you a message with a couple names of people I've heard of that do STR loans. Good luck!