Financing your Vacation Rental

7 Replies

I have two vacation rentals in Crystal River, Florida and was just beat out to add a third to the mix. I happened to listen to Tony J Robinson's podcast out a few days ago where he discussed STR's and gave lots of great advice. He mentioned he has been getting second home or vacation rental mortgages with 10% down and very low interest close to 3%. I have done mine through the local small bank/credit union but they are still wanting 25% and the rate is in the low 4's.

Thanks for any help,

Chris Welch 

If you are getting a Fannie Mae or Freddie Mac mortgage, you won't be buying an investment property with 10 percent down.  You will have to misrepresent why you are buying it in order to do so.

A local bank or hard-money lender can give you any terms that suit them. 

Originally posted by @Chris Welch :

I have two vacation rentals in Crystal River, Florida and was just beat out to add a third to the mix. I happened to listen to Tony J Robinson's podcast out a few days ago where he discussed STR's and gave lots of great advice. He mentioned he has been getting second home or vacation rental mortgages with 10% down and very low interest close to 3%. I have done mine through the local small bank/credit union but they are still wanting 25% and the rate is in the low 4's.

Thanks for any help,

Chris Welch 

Second home loan. Any bank or broker can do it it's nothing special but you do need the day job (DTI) to back it up.

Just be very clear with them what your intentions are.

I would ask how many second home loans they’ve done this year. If the person you’re talking to isn’t familiar with them an “I don’t know” usually comes out as a “no” 

Originally posted by @Jacob Sobrito :

@John Underwood what were the requirements in order to get that loan? Ie: how many months in reserves, credit score minimums?

 I don't remember any reserves requirements. They didn't tell me what minimum credit score was.