Guidance Needed on Vacation/Second Home Loan Requirements

[Anthony Aviles]

Fannie Mae Selling Guide Page 180

(First time post!) My wife and I are looking to purchase a vacation home with the intention of renting it out and self-managing on AirBnB and VRBO when we are not using the property (maybe 90-95% of the year). We decided that this would be a good route for us after listening to the podcast (show 364) with Avery Carl, where she points out that you only need 10% down for Second Home loans versus at least 25% down for Investment Property Loans.

However, we started talking to a mortgage lender, and they indicated that we would be required to obtain an investment loan if there is any rental income whatsoever, regardless of whether or not we self-manage via AirBnB/VRBO and meet all of the other Fannie Mae requirements for Second Homes. I read an article on how Fannie Mae updated their stance (https://themortgagereports.com/22394/new-lending-rule-for-second-home-vacation-property) and now allows this type of arrangement on Second Home loans. The lender did say that they follow Fannie Mae guidelines, but didn't seem to know exactly what I was talking about.

Is this common with mortgage lenders or will other lenders potentially be more flexible? Is there another way I should have gone about this? I do not want to do anything to create issues with a lender or the law.

Is there maybe something I'm missing in the Fannie Mae Selling Guide? The picture included is an excerpt of their requirements for Second Homes. Could anyone clarify the following from Note 1 under the table in the picture:

• What does "eligible for delivery" mean?
• What does "as long as the income is not used for qualifying purposes" mean?

Thank you for your help everyone!

Tony