This week’s question comes from Xavier through Ashley’s Instagram direct messages. Xavier is asking: Can I use an FHA loan for a vacation rental? What’s the best way to scale without paying high down payments?
Xavier brings up a great question that many rookies have been asking. We all know we can get a conventional loan with very low down payment requirements for an owner-occupied investment like a house hack, but what about a vacation rental? Before you bombard your mortgage lender with questions, listen to what Tony (short-term rental expert) has been using for his vacation rental financing.
Here are some suggestions:
Look into vacation home loans, you can secure a property with only ten percent down
Find a lender who’s familiar with funding vacation rentals, this will save you a lot of time
Understand the geographical limitations that come with vacation home loans
Make sure you’re able to use your vacation rental property for personal use at some point in the year
And more in the episode…
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).
Links from the Show
Real Estate Rookie Rookie Facebook Group
Real Estate Rookie Youtube Channel
Real Estate Robinsons Youtube Channel
How to Buy a Short Term Rental with Only 10% Down
BiggerPockets
Check the full show notes here: https://www.biggerpockets.com/rookie156
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