DSCR and 10% down Vacation Loans, Can they work together?

[Rachael Lucas]

Hi all,

I'm am trying to build up my education in this area. I am a little confused on these two types of loans and if they can work together in some way, or if it needs to be one or the other. Can you start with a 10% vacation loan and refinance with a DSCR loan later on? Would that be worth the effort?

I appreciate the insight. Thanks!

[Jay Hurst]

Quote from @Rachael Lucas:

@Jay Hurst thank you so much for breaking this down. Does the 15% down loan have a name? How would I go about finding more info about it?

 It is just a conventional investment loan with a 15% down payment. Any lender should be able to do it as Fannie/Freddie both allow. Do understand that you will have to pay mortgage insurance and the rate will be much higher then if you put down 20% or more. 

https://singlefamily.fanniemae.com/media/20786/display