Questions to ask a lender for a STR

[Kristine Eickman]

I am looking to purchase a vacation home that I plan on using as a short-term rental. I have done this once before, so know that I will need an investment loan vs a second home loan. It has been a few years so I wanted to brush up on what I should be looking for in a lender and also what questions I should be asking. This property would be in Florida and I reside in Minnesota. 

Thanks for any advice you can give!

[Kristine Eickman]

Originally posted by @Chris Mason:

Originally posted by @Kristine Eickman:

Originally posted by @Chris Mason:

As long as you personally will go on vacation there once a year, and don't need projected rental income to 'count,' it can be a second home. 

@Melvin List is someone to talk to for Florida financing needs. 

Interesting - I have never heard that before. I was always told that if it is going to be rented more than I am staying, than it is considered an investment and therefore I needed an investment loan. I previously had 2 homes down there and all the lenders I spoke to said this. We vacationed there at least 2-4 times a year but the fact that I made an income from it made it an investment. I am going to have to make sure I talk to lenders about this again because it will be the same scenario. Like I said, I have been out of the game for a few years so maybe that has changed?

Here is the checklist directly from the source:

 Wow - thank you so much! Based on this we definitely would qualify for the second home loan. We plan on being in the home 2-4 weeks per year and can afford it without the income from the rentals.