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All Forum Posts by: Jeff Chisum

Jeff Chisum has started 7 posts and replied 198 times.

Post: 10% Down Vacation Home/STR financing not going anywhere

Jeff Chisum
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Originally posted by @Cole Britting:

@Jeff Chisum From what I heard from a lender, they are going to be getting much more expensive rendering them almost obsolete. Is that true?

I'd love to own a lake house some day, congrats on the purchase!

 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.  

Post: 10% Down Vacation Home/STR financing not going anywhere

Jeff Chisum
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Originally posted by @Dustin Allen:

@Jeff Chisum

They are going to get more expensive though.

 True.  I talk to about 100 people a month and I would say roughly 50% didn't know about the second home occupancy loan and 80% surprised the rate similar to a primary residence.  

Post: 10% Down Vacation Home/STR financing not going anywhere

Jeff Chisum
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Originally posted by @Bruce Woodruff:

Nice house!!

 Thank you!  We love it there!

Post: 10% Down Vacation Home/STR financing not going anywhere

Jeff Chisum
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Fannie Mae 10% down loans for second homes/STR properties are not going away April 1st just in case you heard something different.

A pic of my lake house that I used a 10% down Fannie loan to buy for emphasis.

Post: Best way to finance my first investment/short term rental

Jeff Chisum
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Fannie Mae 10% down loans for second homes/STR properties are not going away April 1st just in case you heard something different.

Post: Best way to finance my first investment/short term rental

Jeff Chisum
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Hey Craig!  Sound like you may have purchased your property prior to the split when Fannie created their own.  You can call your servicer or sometimes it will say on your credit report


Fannie allows for STR income to be used after it's been documented on your tax return

Post: Bad Information around 10% down

Jeff Chisum
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Originally posted by @Gerald Pitts:
Originally posted by @Troy Owen:

@Jeff Chisum

Are you able to use this product for a second home in the same market as your primary, or is there a certain distance away you have to be?

I believe the minimum distance is 60 miles. 

No set distance requirement just has to make sense. You live in a master planned, sub divided neighborhood and 45 miles away there is a lake community you want to buy a house to get away with the family because you guys like to ski and fish. You plan on staying there at some point during the year and then make available for STR. Golden for 10% down

Post: Bad Information around 10% down

Jeff Chisum
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Originally posted by @Michael Plante:
Originally posted by @Jeff Chisum:
Originally posted by @Joe S.:

Self-employed investors seem to have a hard time getting these kinds of loans anyways IMO.

Just depends. There are some 10% down options on bank statement loans for these type properties. There are also DSCR, investor cash flow loans but require 20%

What are current DSCR interest rates for 20% down 700 FICO $1,000,000 ?

 I can’t post rates on a public forum.  I will send a message

Post: Bad Information around 10% down

Jeff Chisum
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Originally posted by @Michael Plante:
Originally posted by @Shane H.:

@Jeff CChisum

Im not following this at all. Someone posted a link below and it clearly says single unit, no rentals. Ive never used fannie mae and my broker (multiple actually) says he cant get me anything under 20 % down because i own a home. Unless i move of course.

 Post the link please 

 Better to discuss.  Most Loan Officers do not interpret correctly https://calendly.com/jeff-chis...

Post: Bad Information around 10% down

Jeff Chisum
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Originally posted by @Xavier Knight:
Originally posted by @Jeff Chisum:

It can be managed by a property management company as long as there is nothing in the agreement where you would lose to ability to occupy the property.  So you couldn’t have an agreement where they required you make the property available a certain period of time or you would be violating the agreement.  Yeah reading the policy is a good first step but understanding interpreting and vetting out with Fannie Mae is where I help people.

 Can you do something like this on a Air BnB? this is interesting and the first time I'm hearing of this.

 Absolutely!  I will close 20 of these this month.  Everyone same loan product, all will utilize as a short term rental.  All over the United States