All Forum Posts by: Jeff Chisum

10% down second home occupancy loan

Quote from @John Underwood:

You must have a commercial STR insurance policy and NOT a homeowners policy for a STR.

You can have a home owners policy with a STR rider

I will send you a DM

Quote from @Macy Thompson:

Yeah thats what I'm learning. I would like to find a loan with no personal guaranty for asset protection.

 Is that based on the counsel of an estate attorney?

DSCR is a great option if you have debt to income limitations. 90% of my clients use the 10% down second home for STR's

At that level you would need to put down 20%.  If you find someone offering 15% the rate will be about 1% higher.  Have you tried to qualify for the 10% down second home occupancy loan?  That’s what about 90% of my clients are using.

Go 5% down multi family up to four units.  I lend in all 50 states

Quote from @Kaylin Gonzalez:

Quote from @Jeff Chisum:

Quote from @Zach Edelman:

DSCR loan is qualified primarily on the cashflow of the asset. For an STR, the lender, assuming they are STR friendly, would likely use AirDNA projections, historicals from the seller (if they exist), or an STR 1007 market rent schedule to qualify the rents. They are purely for investment purpose and will require you to sign a non-owner occupancy affidavit at closing stating you don't plan to occupy the property for more than 14 days out of the year.

A second home loan is as it sounds, a loan for a property that you will use as a second home, and live in. Rules for this loan product require that the property is rented no ore than 180 days per year or generally half the time. This loan will be qualified on DTI/Tax Returns.

Just want to clarify your statement because I see this offer from DSCR lenders.  The policy states the property has to be available for over half the year for your own personal use.  By listing and renting on the OTA’s like AirBnb and VRBO you never lose the ability to occupy the property because they are not facilitation a legal lease agreement.  Additionally you are released from any restrictions for occupancy after one year.

So example I buy a property near the smokey in tennesses right I go up in that area every year for one week I would still have the keep the property still vacant for six months or can I have it up on the OTAS till the week I go ? 

Bottom line is during the first year you can’t put a lease agreement in place where legally you couldn’t occupy if you wanted to.  The policy says it has to be available for at least half the year.  If you just put it on the OTA’s year round it’s technically still available for you to occupy 100% of the year.  Happy to jump on a call if you would like to send me a DM

If you qualify the 10% down second home occupancy loan is going to keep more money in your pocket and the interest rate will be lower. 100% of my business is helping clients with financing for STR's in all 50 states. 90% of my clients used the 10% down second home occupancy loan (we have a unicorn) and the rest is for the most part DSCR. Feel free to send me a DM. Would love to hear about the dream.

Quote from @Zach Edelman:

DSCR loan is qualified primarily on the cashflow of the asset. For an STR, the lender, assuming they are STR friendly, would likely use AirDNA projections, historicals from the seller (if they exist), or an STR 1007 market rent schedule to qualify the rents. They are purely for investment purpose and will require you to sign a non-owner occupancy affidavit at closing stating you don't plan to occupy the property for more than 14 days out of the year.

A second home loan is as it sounds, a loan for a property that you will use as a second home, and live in. Rules for this loan product require that the property is rented no ore than 180 days per year or generally half the time. This loan will be qualified on DTI/Tax Returns.

Just want to clarify your statement because I see this offer from DSCR lenders.  The policy states the property has to be available for over half the year for your own personal use.  By listing and renting on the OTA’s like AirBnb and VRBO you never lose the ability to occupy the property because they are not facilitation a legal lease agreement.  Additionally you are released from any restrictions for occupancy after one year.