I’m heavily considering acquiring existing properties to use as vacation rentals. Any advice on the financing route? Traditional Home Loan, SBA or other??
Thanks for your question. Financing short-term rental properties can be a bit tricky, which is why not more people rent out second homes rather than starting a business specifically to rent vacation homes. However, with the right providers, this is definitely doable.
Unfortunately, getting a Traditional Home loan isn’t really possible for financing vacation rental properties because lenders require that the property be owner-occupied. SBA lending is an option but can be expensive and time-consuming.
To get started looking for financing on vacation rentals, we suggest starting with our article on Where to Get Investment Property Loans for Rental Property. This article will provide some high-level guidance and help you identify which route may be best for you.
Based on the situation you’ve described, one of the first places you may want to look is LendingOne. LendingOne is a provider that’s specifically geared towards helping investors to finance residential rental property and may be just what you need.
For a list of other providers who may be able to help, check out our article on the Best Portfolio Lenders. This will be especially helpful if you’re thinking of buying more than one vacation rental.
Hope this helps!
You must be logged in to reply to this topic.
Not signed in?
Sign in to participate on our website!
315 Madison Avenue, 24th Floor
New York, NY 10017
Disclaimer: We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Click here to see our full disclaimer.
Product or company names, logos, and trademarks referred to on this site belong to their respective owners.