Vacation Rental Home Purchases
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!