10 vs 20% down loans in Sevier County, TN

[Mike S]

I've spoken to several bankers including some referred from The Short Term Shop about doing a 10% down vacation property loan and any time I've mentioned considering rental income they have all stated that if it's an investment property I would need to do 20% down. That's not a problem either way but I'd much rather do 10% vs 20% and keep a lot of cash just in case. Do most just keep their STR intentions to themselves?

Thanks

[Avery Carl]

@Mike S just to echo what everyone else has said:

You can’t utilize projected rent income to qualify for a second home loan, but you can (under current guidelines so definitely discuss and be transparent with your lender) you ARE allowed to rent out a second home out when you aren’t using it as long as you maintain control of the property (i.e. no lease and no property management contract that takes control away from you). The current guideline for the time you need to spend there is around 2 weeks a year. But again, discuss with your loan officer.