Does anyone know the rules on taking out a loan as a vacation home vs an investment property?

A rule of thumb is that expenses, over time, will average 40-50% of the rent.

In other words, I have heard that if a lender (bank or servicer) forecloses and regains possession, then they must keep cash reserves on hand of 30% of property value.I have also heard that the requirement to adhere to this rule hinges on the lenders standing as viewed by the FDIC.True?

I wish the 80% rule would apply but apparently not with them.

Conforming" for a loan means it conforms to Fannie Mae's rules.

Hello all,I was thinking about the 50% rule and I was combining this to the ROI.

The rules are tighter these days.

fyi: I opened a Macy's card many years ago before I knew all the rules about credit.

As for rehabbing, that 10,000, 20,000, 25,000 - that's one of the dumbest rules I've ever heard!!!

So I think what I'm getting out of all of this is that there may very well be expenses but most likely the 50% rule can be more aggressive.