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If I'm buying a condo that is not going to be my place of living what loan do I use?

I'm looking at properties that could serve as vacation rentals off the strip, no full time tenants. My current home is paid off but it was a conventional mortgage, i dont know if that's the best loan to go with a vacation rental? by 12.kevar897753 from Las Vegas, Nevada. Jan 30th 2015 Reply


Ben Holloway (ben.holloway@mwfinc.com)
#993 ranked lender in California - 10 contributions

You have a few options. You may want to purchase the condo as a 2nd Home or Investment property, or you can refinance you existing home, and pull out enough cash to by the condo for Cash.

Jan 30th 2015
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#29 ranked lender in New York - 2,236 contributions

You will go with a conventional loan again, it will be considered your second home. You will need to put 10% down

Jan 30th 2015
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Jeff Shumway (jeff@mortgagesforamerica.org)
#41 ranked lender in Nevada - 49 contributions

Conventional is likely your best bet, but another option would be to do a cash out refinance on your current home and use the cash to purchase the rental.

Jan 30th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

You have to properly disclose your occupancy intentions upon applying for a loan.. if you are going to use the property as part time vacation home, and part time vacation rental, then it's considered a rental, and you must disclose your intent is to purchase it as an investment property.. Loan pricing is slightly higher, and you must put 20% or more down.. Per the guidelines, if you intend to rent the home for 1 day a year, it's considered an investment property and you would be subject to investor guidelines.. If you do a "Cash Out" refinance on your existing home, then you can use the proceeds for anything you wish without restrictions.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jan 30th 2015
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Dave Metsker (DaveMetsker)
#38 ranked lender in Oregon - 2,317 contributions

Borrow enough on your owner-occupied property, to pay cash for the investment property.

Jan 30th 2015
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Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,106 contributions

You would get a conventional investment loan if you plan on renting it out at all. You would need to put down at least 20% and if you can put down 25% or greater for better loan terms. However, you would get the best terms by doing a cash out refinance on your current home and buying the new property out right. Like any loan you should get pre-approved first. Talk with a local loan officer and have them review your application, credit, finance and assets. They will give you all of your loan options to help you decide what is the best loan for your needs. Best wishes, Sean

Feb 1st 2015
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