Can I buy another "second home" for STR with 10% down?

Question

Hey all,

My wife and I own a "second home" in Reno Nevada which we purchased with 10% down and were planning to purchase another one, but our lender told us that we can't get another loan for a second home within ~100 mile radius of an area where we already own a second home/primary residence. Wanted to check if that is true and if it is just lender specific or are there any legal laws around it.

Thanks

Theresa Holl · Answer

Anand- a friend of mine is a mortgage broker with a lot of investor experience. I can connect you.

Bradley Buxton · Answer

@Anand Khanna

I'm in the Reno, NV area and have multiple local lenders I can connect you with.  They have helped many of our investor clients with creative financing.  I'll send you a PM.

Michael Baum · Answer

Hey @Anand Khanna, your lender is correct. Typically, any 10% 2nd home loan has that stipulation. Some are 65 miles, but 100 is pretty normal.

Your best bet is a standard 20% down loan or what @Andrew Steffens said about a lower down loan from a portfolio lender.

John Underwood · Answer

I've heard it both ways. I think the vendors have some of their in house rules.

I'd check with different mortgage brokers to check this.

I've also heard getting the 10% down 2nd home loans are currently harder to get.

Anand Khanna · Answer

Thanks for your reply :)The properties I’m looking for are in the city of Reno/Sparks in Nevada. They’re not on the coast or in the mountains. They’re pretty standard SFHs

Andrew Steffens · Answer

I am not a mortgage broker, but my limited knowledge is you can (if you financially qualify) and the property has different second home features it is possible.  I.E. I think there are places in California where the mountains and the beach are close to each other so you could have a primary home, and 2 second homes one on the beach and one in the mountains.  Or here in FL you could have them on different coasts.

Anand Khanna · Answer

Thank you Theresa, your help is much appreciated! 🙏

Can I buy another "second home" for STR with 10% down?

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