Vacation home loan is 10% down still available

[Todd Willhoite]

I read where loans for a vacation home 30 year fixed fannie mae loan only requires 10% down.  I talked to a bank in Branson, MO where I am considering building a vacation home and they said 20% minimum on vacation homes now.  Does anyone know if 10% down, 30 year fixed rates loans for vacation homes are still available?

[Nick Belsky]

@Todd Willhoite

I just pre-approved a vacation home and got "approved/eligible" when running through DU (Desktop Underwriter).  10% down on $250k.  So, to answer your question, yes, they are still available.  Many lenders will pull the program since Fannie is reducing the amount of vacation and investment loans they will buy.  Depending on their mix, some lenders will pull entirely, some delayed, and some may never pull them.  Many quit doing Cash-Out refis and rehab loans during the plandemic.  Very few of the lenders I work with stopped doing them, but some did.  Great business for me when a bunch of competing brokers and banks quit offering products that are in demand!  Lol... 

I don't service OK or MO, but there are lenders who can do what you are looking for.  

Check out https://findamortgagebroker.co...

Cheers!

Nick Belsky

[Todd Willhoite]

@Nick Belsky  Thank you for checking on it.

[Andrew Postell]

@Todd Willhoite yeah, 10% down has been the standard for years for 2nd homes.  Plenty of lenders will be able to do this.  Just go to a different lender.

[William Beck]

It depends. The bank you spoke with most likely has a saturation requirement where they can't do a 2nd home loan if they know all the neighbors are operating vacation rental commercial property. It's a selling the loan off on the secondary market requirement that could get the bank in trouble if they exceed some degree of risk threshold set by the saturation.  I got this information from a President of one of the local banks here. There are ways to get around it though. Let me know if you'd like to connect @Todd Willhoite

[Caleb Brown]

I highly reconmend @William Beck. He helped us

[Caroline Gerardo]

There are purchase Second home products with 10% down. Property needs to be in a vacation type area, or make sense for owner...  New construction to permanent loans require 20 -25% equity of completed value and licensed contractor. Two different types of loans... 

[Chris Mason]

Originally posted by @Todd Willhoite:

I read where loans for a vacation home 30 year fixed fannie mae loan only requires 10% down.  I talked to a bank in Branson, MO where I am considering building a vacation home and they said 20% minimum on vacation homes now.  Does anyone know if 10% down, 30 year fixed rates loans for vacation homes are still available?

 Building a vacation home, and buying a vacation home, are two entirely different things. 

[Andrew Postell]

@Chris Mason Oh, god bless America....thanks for pointing that.  Totally missed that small, little, REALLY important detail. Reading is fundamental.

[Luke Rorech]

@Todd Willhoite as others have mentioned, speak to another lender. I have two clients who just got approved for 10% on vacation homes. Best of luck. 

[Anthony King]

@Todd Willhoite I just closed on a vacation home/short term rental with 10% down, 30 year, 3.625% on June 28th. Gulf Shores, AL.

[Ryan Woods]

@Anthony King That's great! May I ask which lender you used for this? Thanks!

[Steve Armstrong]

I would like to know more about that lender as well.

[Anthony King]

Firstbank mortgage. They were in Gulf Shores, Alabama though.

Originally posted by @Steve Armstrong:

I would like to know more about that lender as well.

[Steve Armstrong]

I would like to know more about that lender as well.

[Steve Armstrong]

Thank you Anthony!

[Tom Tang]

Is the 10% down still available now in June 2023