Refinance question With a short term rental

[Joe S.]

So many lenders want there to be a tenant with a lease in place for a refinance. A couple that I’ve talked  to will even penalize you on your interest if you do not have a tenant in place before refinance. Are lenders not allowing for short term rentals or they simply don’t know how to package it? I know one workaround is to do a lease for the first year and then turn into a short term rental, but that could be a pain if you’re end goal is a short term rental and we wasted a whole year fooling around with a long-term rental.

[Luke Carl]

Originally posted by @Joe S.:

Originally posted by @Luke Carl:

2 years tax return. Sometimes 1. For DTI anyway. You present an interesting question I believe I don't have the answer to. Is there a DTI issue? Why not refinance it as a second home and they wouldn't care about any of this.

 With some of the new asset base loan products the debt to income ratio does not come in to play. The property would have to cash flow of course as well as a good credit score and reserves in the bank. With these products it appears that they are wanting a one year lease in place.

 Sounds like 2008 doesn’t it? What am I missing