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Updated about 2 years ago on . Most recent reply

User Stats

188
Posts
110
Votes
Jeff Chisum
  • Lender
  • All 50 States
110
Votes |
188
Posts

10% Down Vacation Home/STR financing not going anywhere

Jeff Chisum
  • Lender
  • All 50 States
Posted

Fannie Mae 10% down loans for second homes/STR properties are not going away April 1st just in case you heard something different.

A pic of my lake house that I used a 10% down Fannie loan to buy for emphasis.

  • Jeff Chisum
  • Most Popular Reply

    User Stats

    188
    Posts
    110
    Votes
    Jeff Chisum
    • Lender
    • All 50 States
    110
    Votes |
    188
    Posts
    Jeff Chisum
    • Lender
    • All 50 States
    Replied
    Originally posted by @Cole Britting:

    @Jeff Chisum From what I heard from a lender, they are going to be getting much more expensive rendering them almost obsolete. Is that true?

    I'd love to own a lake house some day, congrats on the purchase!

     Thanks Cole!  We love it there and own another home on a golf course about 20 minutes from the lake house.  

    Far from the truth.  I visit with about 100 clients a month consulting on financing strategies around this asset class.  90% are surprised when I tell them the second home occupancy loan rates are similar to what you would get on a primary.  Now rates will be similar to what is currently available for investment property loans.  Still 10% down on a property that will out perform a LTR in cashflow and appreciation.  I'm fine with the rate.  Would I rather have it lower...sure.  Obsolete...not even close.  

  • Jeff Chisum
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