All Forum Posts by: Jeff Chisum

Talking to the wrong lender if they tell you rates on investment property and second home loans are the same. 10% down, lower rates, friendly towards STR. Second home is the way to go!

Seeing some good movement down on the 10% down second home/STR occupancy loan

Hey David.  Happy to help!  Yes the fact that the historic or estimated income can not be used can be limiting for some.  If you can get that first one under your belt you can use the income after a year then move on to do another.  Fannie and Freddie allow one individual to have ten mortgages in their name.  
A DSCR loan doesn't look at individual income. 90% of the approval is based on historic or market data that shows the property will perform at a 1:1 ratio. PITI vs Gross Rent. 20% down on that loan.

Depends if you are looking to buy in the same otherwise.  There are no rules around the mix of mortgage products that you have in your personal name.  The limit is ten.  

Subjective interpretation of the policy. All comes down to availability and control. Fannie modernized the policy to reflect was going on in this space. They are in the business of performing loans. They loved fully qualifying borrowers could supplement that ability with STR income.

Because it's an owner occupied product the rate is really low- typically .2-.24% of the loan amount. After two years you can have it reappraised to get rid of PMI. Better option than paying 5% on a second

Fannie Mae will allow an individual to have 10 mortgages in their name. Nothing to say those couldn't be all second home occupancy loans. I have the ability to do an additional 5 DSCR loans in the name of an LLC.

“At some point during the year”. The 14 days and 10% of days…is all tied to business vs personal IRS 

 Thanks Cole!  We love it there and own another home on a golf course about 20 minutes from the lake house.  

Far from the truth.  I visit with about 100 clients a month consulting on financing strategies around this asset class.  90% are surprised when I tell them the second home occupancy loan rates are similar to what you would get on a primary.  Now rates will be similar to what is currently available for investment property loans.  Still 10% down on a property that will out perform a LTR in cashflow and appreciation.  I'm fine with the rate.  Would I rather have it lower...sure.  Obsolete...not even close.