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All Forum Posts by: Jeff Chisum

Jeff Chisum has started 7 posts and replied 201 times.

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

Jeff Chisum
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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.

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

Jeff Chisum
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Originally posted by @Matt Ternullo:

The requirements I read said it cannot have any agreements that put another company in control of occupancy, does that mean it can't be put in a property managers hands even if you occupy it at some point in time? Or just not before the sale can said agreements not be entered in to?


I have yet to come across a property management agreement that required the owner to make the property available “x” amount of days a year or they would be in breach of contract.  So not an issue.  Same with listing it on Airbnb or VRBO.  Those sites do not facilitate legal lease agreements.  So good there too

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

Jeff Chisum
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Originally posted by @Cole Britting:

@Jeff Chisum Thank you for the clarification! What are the occupancy rules for using the second home loan? I’ve heard it’s either 14 days or 10% of the days you rent it for.

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

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