Financing for STRs/Vacation Rentals

[Brian T. Grooms]

Does anyone know of lenders that specialize in Short Term Rental financing? I know there cannot be many out there. Obviously you could use conventional and convert a property to an STR. But there are mortgage due on sale clauses to deal with if you own or want to own in an LLC.

I am thinking that there must be commercial lenders that would loan or refinance on STRs, anyone have experience with this?

[Erica Muller]

Yes I have three lenders that have financed dozens of my clients for vacation rentals. They have specific loan programs for this. 

Their typical requirements are: 

30-40% down

There are minimum loan amount (all three have different ones)

You cannot have more than four mortgages already in your personal name 

That being said they lend here in Florida but I am not sure where else they can lend.