All Forum Posts by: Jeff Chisum

Yeah I get it but you have to go back to the number one purpose of the loan- second home occupancy.  They want people using these to occupy and that has to make sense when considering distance from any other real estate owned.  

Yes if it’s going to be a primary

So much bad and misinterpreted information around Fannie Mae 10% down Second Home Occupancy financing. I talk to about 100 people a month interested in this space. My biggest opportunity in these conversations is to educate people. So many don't realize this loan product can be used to buy an STR, multiple STR properties. If they do know about the product there is always something to correct in what they have been told by other loan officers. Fannie Mae loves there is this opportunity for the borrower to supplement their ability to repay the mortgage.

That's awesome!!  Congratulations.  Yeah about two years ago I happen to read one of the 100's of emails I get a day and it covered the changes Fannie was making with Second Home Occupancy.  After I bought my first property I really became interested in how I could scale so I dug in even deeper.  That lead me to find a huge opportunity to educate and re-educate because of misinformation from lenders.  I went live on my second one about a month ago.  Love it!  Big mailbox money.  

Loan Originator. I specialize in 2nd Home/STR financing Nationwide

http://www.freddiemac.com/unif...

vs Fannie Mae. Fannie Mae will also allow for you to transfer title into an LLC after a year and will not execute the due on sale clause.

https://singlefamily.fanniemae...

Additionally Freddie doesn't release you from that one year time frame to occupy the property or agree to those terms for a year like Fannie states in their rider

Vacation home/Second Home all the same loan.  It's all about intention.  Fannie has the most liberal policy that states as long as your intention is to occupy the property at some point during the year the requirements are met.  Second home occupancy can be rented on a short term basis and you have to keep control of the property.  This means no leases of 30 days or more where tenant rights would be involved.  Fannie Mae second home rider confirms they allow short term rentals and your commitment to occupy the property in this manner is for a year.  That means you could do another one in the same market a year later.  All with 10% down.  Purchasing power- $548,250 conforming loan limit + 10% down= $615,000 purchase price.  $548,250- 1st mortgage, add a $200,000 piggy back second + 10% down = $830,000 max purchase price.