Vacation Home Mortgage Question

[Pierce Edwards]

Do you need to currently own a home/primary residence to utilize the 10% Vacation Home Loan? Or can I use the 10% Vacation Home Loan while renting? Also, would using the 10% down eliminate the option to use the 3% FHA loan when I do purchase my first primary residence?

[Torrell Palmason]

You will not need to own a primary to be eligible for a Second home loan. Also, the Second home will not eliminate you from using an FHA Loan at 3.5% down.

The biggest requirements for the Second Home loan are you must occupy the property for a minimum of 14 days out the the first year, 1 unit only, and must not be rental property. That last one is why people choose to have the home as a STR as there is not rental agreement but you are still able to have the property cash flowing. There are other rules and requirements I just touched on the biggest ones, reach out to your lender to get a full rundown or PM me if you have any questions.

Best of Luck!