Best option for financing vacation home.

[Travis Peterson]

I am looking to purchase a vacation home in the Phoenix AZ market. This will be a vacation home for my family and a STR when not in use by us. My budget is $1,200,000 and I can put 20% down. What is the best option/mortgage for me? Do I talk with a local bank, national bank, or mortgage broker?

[Robin Simon]

I'd recommend talking to a mortgage broker that specializes in non-QM loans including "2nd Home" vacation loans

[Melanie Johnston]

Hi @Travis Peterson.

It's always best to talk to a local loan officer as they are licensed in our state and have access to options beyond what banks may offer.

I will DM you lenders who have helped my BiggerPockets STR clients buy in Scottsdale and Metro Phoenix.

And I would be happy to be a resource for you, so please feel free to reach out.

Melanie

[Melanie Johnston]

@Travis Peterson

Here are some search results for different parts of town. For maximum flexibility when attracting short-term rental guests, always start your search with non-HOA neighborhoods.

There are even some neighborhoods without HOAs that have 30-day minimum rentals, but I've weeded those out.

This search includes homes priced up to $1,300,000, as most sellers are currently being flexible on price.

https://www.flexmls.com/share/...

Let me know when I can help.

Melanie

[Art Shalomov]

@Travis Peterson  You’ve got different options based on your personal financial picture. I would be happy to run through the highlights with you to see what might be your best option.
As an investor myself, and someone who works with a lot of BiggerPockets STR buyers, I can share what's working and make some recommendations.

[Paul Defngin]

If you’re going conventional on a second home, you might want to consider putting even more down and make sure that your debt to income ratio is <41%, and credit at or above 780, ideally, as the GSE’s just made changes to the Loan Level Pricing Adjustment (LLPA) just got even more expensive effective 05.01.2023 but most lenders will either incorporate this into their pricing or will then. 

[Erik Estrada]

Quote from @Travis Peterson:

I am looking to purchase a vacation home in the Phoenix AZ market. This will be a vacation home for my family and a STR when not in use by us. My budget is $1,200,000 and I can put 20% down. What is the best option/mortgage for me? Do I talk with a local bank, national bank, or mortgage broker?

 A mortgage broker will help you out with this. Especially one that understands this particular niche 

[Robin Simon]

Quote from @Erik Estrada:

Quote from @Travis Peterson:

I am looking to purchase a vacation home in the Phoenix AZ market. This will be a vacation home for my family and a STR when not in use by us. My budget is $1,200,000 and I can put 20% down. What is the best option/mortgage for me? Do I talk with a local bank, national bank, or mortgage broker?

 A mortgage broker will help you out with this. Especially one that understands this particular niche 

 Agreed

[Lyndsay Zwirlein]

Happy to help strategize with you. I am a mortgage broker and specialize in STR (conventional & non-QM products). We own several personally as well. I'll send you a note if you're still looking for options.

[Nathan Frost]

Quote from @Melanie Johnston:

Hi @Travis Peterson.

It's always best to talk to a local loan officer as they are licensed in our state and have access to options beyond what banks may offer.

I will DM you lenders who have helped my BiggerPockets STR clients buy in Scottsdale and Metro Phoenix.

And I would be happy to be a resource for you, so please feel free to reach out.

Melanie

Hi, I'm looking for a community bank or portfolio lender who can offer a vacation home loan with a 10% down payment. Please let me know if you can offer 90% LTV AND are NOT a conventional lender. I am strictly looking for a Portfolio or Community lender.

[Nathan Frost]

Quote from @Lyndsay Zwirlein:

Happy to help strategize with you. I am a mortgage broker and specialize in STR (conventional & non-QM products). We own several personally as well. I'll send you a note if you're still looking for options.

Hi, I'm looking for a community bank or portfolio lender who can offer a vacation home loan with a 10% down payment. Please let me know if you can offer 90% LTV AND are NOT a conventional lender. I am strictly looking for a Portfolio or Community lender.