Great stuff. I wanted to just offer a very quick down-and-dirty recap here for clarity... 10% second home loan is an excellent option if you have the income and enough reserves to qualify. That's what they mean by DTI. Essentially, you need enough money in your accounts and retirement to cover 6 months of all held debt (car loans, card loans, mortgages, etc). Additionally, with those 2nd home loans, you can not use the projected income to qualify. You can use projected income to qualify with a DSCR or investment loan. So if you don't make enough to qualify for a conventional mortgage, with an investment product, you can apply that projected rental income to qualify for the loan. Of course, the downside to the DSCR or investment loan is that you need 15-25% down.
Super valuable video as always guys!! Thank you so much. My question is what do lenders get out of this? Just like she said all lenders are not created equal, I’m sure different lenders charge different points to make their money? Because I think lender fees are a big point that can add up in the end when you are closing
Great Content as always! Thank you. I am new to real estate world and been watching your contents. I have a question. Are tax and depreciation benefits can be apply to your second home (short rental property) just like a conventional investment property? I would appreciate any input! Thanks
I just a quote today for a second home loan: 10% down, 6.25% rate at 30yr amort and 2.015% origination fee. Requires reserves at 6mo of PITI + HOA fees. DTI of 50% if under $647k loan and 45% if over $647k.
Thank you guys! Very informative! I just bought my second investment property, and I am learning so much from you two! Keep up the good. We see you (and I hope to join you one day for a feature 😁💗💯) 🤜🤛😉
Hey Robinsons! Great video once again! I'm out in LA area and was wondering if you can share your lender that you use for purchasing properties here in Cali? Thanks
Question - is this loan going on your personal credit or under your business credit - in other words - can you put it in your business real estate name vs. your name?
Thanks for having this video! I am looking for something like this. A question though: if I purchased a vacation/second home, can the furniture, fixtures etc be written off if I make it as a short term rental?
You guys are so awesome thank you so much for this video I am a single mom and trying to buy my second vacation home and hopefully one day be able to retire soon and spend more time with my kids
Great info. Some I knew, some I didn't. When Brenna was talking about the number of loans you could have in a particular area, Tony hit the question that popped into my head (radius). Brenna's answer about not only distance but the ambiance of the location (mountain v lake) was enlightening. That could be a little tidbit of info that could get a deal done. Of course, you'd need a broker that would be willing to use that info to make it happen.
As mentioned in the video, DTI is key here. I think for many folks with moderate income and a housing payment for their primary residence, DTI will be too high for the second home loans. I went with an investment property loan for this reason.
@@tameralynn7579 correct. You can not use projected rental income for a second home loan. You can for investment products and non-qm loans like a DSCR loan.
I had trouble focusing with all the color of Sara's shirt! Just kidding. Another great video that is easy to understand, yet provides great details and entertaining all rolled together!
Thank you so much for the video guys. Easy to comprehend. My wife and I are looking to buy our first short term rental property (Airbnb) and we are in the research phase on how to go about it and this video helped a bunch. Thanks again :)
I soooo appreciate this video guys!! Thanks. Brenna is awesome 😎 I wonder if anyone have a good lender in Texas? We looked into chase but I would like other suggestions as well.
Wow you guys looked really different here. Great tips! Did the guy on the left get nose work done? Looks good but original nose usually beats alterations imo. Nice channel
Wait, you as the buyer of a second home have no control on what’s going on with that property before you close on the loan so I don’t understand why an appraiser would cause that loan to get denied? Whatever the seller is doing with the property before you close and get keys has nothing to do with the buyer, am I correct or not?
Great info...I've tried to download the calculator & checklist, but it doesn't seem to be working. After I put in my name and email, the download button just keeps spinning!? Any help would be appreciated. Thanks!
Does it make sense to do 20% and eliminate the PMI? 20% + no PMI (which can usually be between .25 and 5%) can make a huge difference on your mortgage payment.
When your lender gave the example of 50k income on a 400k cabin, was she taking net or gross? Net would be incredible, gross would still be very decent. 400k is looking like a 1 bed chalet these days...
You guys own the one in the thumbnail? And the other 20 just like it lol I'm currently building in the area and there are maybe 10-15 of that "hotub" place lol
Any comment on the changes Feds are bringing to squash the vacation home loans? According to my lender starting April the rate on those loans is skyrocketing to 6%.
Great content and really appreciate you both taking the time to add her to your channel. Q: Wouldn’t a short term rental business always be schedule C? I feel like E would be for a long term rental business. Curious what others are doing.
Yeah, There is a difference between the interest rate between the 10%, 15%, 20% & 25% I couldn’t help but notice how none of them talked about what the interest rate was for these 10% down payment loans are. Honestly it comes of like a KIA commercial. They only talk about how little your down payment or monthly payment can be but never talk about what interest rate you will be paying or how long you have to make those low monthly payments for.
Typically you’ll get a 30 year fixed term with a second home loan. When this video was recorded, interest rates on a second home loan was pretty much in lock step with primary homes. Now, they’re about 1.5 to 2 points higher.
According to my lender, Fannie Mae and Freddie Mac have literally just removed 10% down payments for second home loans and now require 20%, making that the new standard for most loans. Has anyone else experienced this?
Changes coming April 1, 2022 I believe. You can still put 10% down but they add like 4.75% interest on top of prime rate. The more down payment you lay, the small amount of interest tacked on. That’s my understanding at least
How is this not mortgage fraud ? If your intention is to rent the property out for STR straight away, how is the underwriter approving your “second” home or “vacation” home? Lender will call the loan and make you refi at a higher rate and larger DP (20-25%) down for a NOO investment loan The staying for 15 days comment is also misleading as well.. it’s 14 days OR 10% of the number of days your rent it out (which ever is greater). This rule relates to the IRS (not lenders) I’d be careful openly admitting that you are stating your “intention” is to live in the vacation home but the reality is you fully intend to rent it… obviously a gray area but many people will get burned. Im speaking from experience s my friend just got called on this lending approach.
@@colindougherty5729 short term rentals takes as much time. Add up all the late night guest calls and code enforcement calls from the city letting you know your guests are in violation.
@@duffer2307 I make $140K/yr in my W2 and I net $70k/ yr btwn my two STRs. I can remember maybe 1 middle of the night call in the last few years and I'm permitted for STR through the county and permitting was a little annoying, but reasonable. I average 3-5 hrs per week on my STR (2 hrs most weeks, but a few times per year I need to coordinate big things on the property) and 40 hrs/wk on my W2 job. I'm.making way more hourly on my STR. If you love what you do, like being a teacher or working on an important cause, then that's something additional that money doesn't provide.
@@colindougherty5729 your lucky then I call the police every weekend I have even had to get my shot gun evolved a few times. Lets just say my neighbor does not get high ratings for his air bnb
Great stuff. I wanted to just offer a very quick down-and-dirty recap here for clarity... 10% second home loan is an excellent option if you have the income and enough reserves to qualify. That's what they mean by DTI. Essentially, you need enough money in your accounts and retirement to cover 6 months of all held debt (car loans, card loans, mortgages, etc). Additionally, with those 2nd home loans, you can not use the projected income to qualify. You can use projected income to qualify with a DSCR or investment loan. So if you don't make enough to qualify for a conventional mortgage, with an investment product, you can apply that projected rental income to qualify for the loan. Of course, the downside to the DSCR or investment loan is that you need 15-25% down.
This is amazing. I have about $180K that I want to invest, but if I can do 10% down, I can turn that into 3 short term rentals!
Yeah but what about PMI insurance that’s quite expensive added on to the payment of you don’t put at least 20% down???
Great video guys! Thank you for bringing her on. It was extremely informative.
Thank y’all so much for making this video! My wife are so excited to get this machine up and running, hopefully one day and y’all’s level.
Exactly the info I was looking for, great video!
Love Sara's honestly. Completely relatable for me. Good information.
You guys asked such freaking good questions, thank you!!!!
This was super helpful, looking to get my second str in the gatlinburg area !
GREAT STUFF. Here shortly, going to dive into the market!
Amazing, thanks for this episode, super helpful
First time watching your video just what I’m looking for. Thank you
Awesome content! I really appreciate the great info that you both share regarding STR's.
Glad you enjoyed it!
So glad I found this channel🔥🙌🏿
This might be the best one of your vids i have watched! Your wife asked every question I was thinking of. More like this plz!
Thanks so much! What topic would you like us to hit next?
Very informative. Best, most direct video I’ve seen on the topic. Thank you!
Thank you!
Man she's so smart!!! She knows what she's talking about!
Awesome video and highly applicable information on the vacay home loans. Thanks!
Thanks for doing this interview. It helped clear up some misconceptions I had in my head.
Glad it helped! And thanks so much for watching.
Amazing info ! God Bless!
Super valuable video as always guys!! Thank you so much. My question is what do lenders get out of this? Just like she said all lenders are not created equal, I’m sure different lenders charge different points to make their money? Because I think lender fees are a big point that can add up in the end when you are closing
This was so helpful!! Thanks you!❤
Soooooooooo informative! Thanks so much for sharing. 👍🏾❤️
Thanks for watching!
Amazing video as always from you guys, I am almost certain that the 2nd home mortgage goes striaght to the DTI correct?
Great video, thanks!
Great content. Banks need to load money now. I can see how some would think this is a grey area but, you are technically playing by the rules. Love it
Great Content as always! Thank you. I am new to real estate world and been watching your contents. I have a question. Are tax and depreciation benefits can be apply to your second home (short rental property) just like a conventional investment property? I would appreciate any input! Thanks
I just a quote today for a second home loan: 10% down, 6.25% rate at 30yr amort and 2.015% origination fee. Requires reserves at 6mo of PITI + HOA fees. DTI of 50% if under $647k loan and 45% if over $647k.
Great interview!
Really informative video. Do you have any lenders in CA you would recommend? Thanks!
Great info!
Really useful info I didn't know I was under the impression I needed 20 percent
Very informative video. Awesome
Thank you guys! Very informative! I just bought my second investment property, and I am learning so much from you two! Keep up the good. We see you (and I hope to join you one day for a feature 😁💗💯) 🤜🤛😉
congrats! I am starting now, with investment property did u put down a 15%? Thanks!!
This is great! Thank yo!
Awesome information! Thanks, guys!
You bet!
this video was straight fire like you guys are giving this info for free WOW!!!
Great video. Brenna I'll be calling you!
Hey Robinsons! Great video once again! I'm out in LA area and was wondering if you can share your lender that you use for purchasing properties here in Cali? Thanks
Thanks for the great information!
Glad it was helpful!
Question - is this loan going on your personal credit or under your business credit - in other words - can you put it in your business real estate name vs. your name?
When tax time rolls around, does it benefit you more to have a 2nd home or investment property? Can you deduct a lot more with an investment property?
Thanks for having this video! I am looking for something like this. A question though: if I purchased a vacation/second home, can the furniture, fixtures etc be written off if I make it as a short term rental?
You guys are so awesome thank you so much for this video I am a single mom and trying to buy my second vacation home and hopefully one day be able to retire soon and spend more time with my kids
You got this!
Great info. Some I knew, some I didn't. When Brenna was talking about the number of loans you could have in a particular area, Tony hit the question that popped into my head (radius). Brenna's answer about not only distance but the ambiance of the location (mountain v lake) was enlightening. That could be a little tidbit of info that could get a deal done. Of course, you'd need a broker that would be willing to use that info to make it happen.
Very true! And glad it was helpful.
I appreciate yous!
Great info! Are you aware of any restrictions if your primary residence recently switched to an investment property?
As mentioned in the video, DTI is key here. I think for many folks with moderate income and a housing payment for their primary residence, DTI will be too high for the second home loans. I went with an investment property loan for this reason.
This is because you can’t count on any rental income to help with DTI for these types of loans right?
@@tameralynn7579 correct. You can not use projected rental income for a second home loan. You can for investment products and non-qm loans like a DSCR loan.
Awesome vid, thanks!
Thanks for watching!
Another great video. Are you at your new build in Tennessee? How long before you will have guests? Thanks for the great content.
Thanks so much! The new builds are still under construction. Won't be done until the end of the year most likely.
This was FANTASTIC 👏
Wow.What a great video!
I had trouble focusing with all the color of Sara's shirt! Just kidding. Another great video that is easy to understand, yet provides great details and entertaining all rolled together!
Thank you for this video
Glad you enjoyed it!
Thank you so much for the video guys. Easy to comprehend. My wife and I are looking to buy our first short term rental property (Airbnb) and we are in the research phase on how to go about it and this video helped a bunch. Thanks again :)
Thank you
I soooo appreciate this video guys!! Thanks. Brenna is awesome 😎 I wonder if anyone have a good lender in Texas? We looked into chase but I would like other suggestions as well.
Great info great video! Thank you for continuing to give us the run down. Toni’s make up artist is ruthless though😂
😂
Great information cousin.
Glad you liked it!
Great video
Sara asking all the questions I have lmao I was so confused too
Wow you guys looked really different here. Great tips! Did the guy on the left get nose work done? Looks good but original nose usually beats alterations imo. Nice channel
Can you do a second home loan like this as a re-fi to pay off a hard money construction loan used to to rehab the property first?
Do you have your airbnbs under an LLC? If so, did you buy in your personal name then transfer the title? Or just buy in an LLC?
Good question!!
love you guys
Thanks so much!
How do the guidelines change for multifamily properties?
Wait, you as the buyer of a second home have no control on what’s going on with that property before you close on the loan so I don’t understand why an appraiser would cause that loan to get denied? Whatever the seller is doing with the property before you close and get keys has nothing to do with the buyer, am I correct or not?
Excellent
She wasn’t kidding when she said the mafia 😂
Great info...I've tried to download the calculator & checklist, but it doesn't seem to be working. After I put in my name and email, the download button just keeps spinning!? Any help would be appreciated. Thanks!
Does it make sense to do 20% and eliminate the PMI? 20% + no PMI (which can usually be between .25 and 5%) can make a huge difference on your mortgage payment.
When your lender gave the example of 50k income on a 400k cabin, was she taking net or gross? Net would be incredible, gross would still be very decent. 400k is looking like a 1 bed chalet these days...
I don't have a w2 job income, can I qualify for the vacation home loan?
The names Fannie Mae and Freddie Mac made me giggle (I’m up in Canada). Great video!
They are sort of acronyms Fannie Mae = federal national mortgage association Freddie Mac = federal home loan mortgage Corp.
Glad you enjoyed!
Reasons I watch your content:
1) your content
2) her/his smile
🙈😂
Hahah so sweet!!
If I have a primary home in a city, can I also have a secondary/vacation home in that same city as well?
You guys own the one in the thumbnail? And the other 20 just like it lol I'm currently building in the area and there are maybe 10-15 of that "hotub" place lol
Any comment on the changes Feds are bringing to squash the vacation home loans? According to my lender starting April the rate on those loans is skyrocketing to 6%.
Rates will probably change, but in my mind, a slightly higher interest rate still beats a 20% to 30% down payment.
Great video. Very informative. You should have splurge on second mic. All the mix passing was awkward.
Haha, we forgot to pack our second mic!
Thanks for this video, just sent a new client inquiry to this brokerage. New York State is hard to find brokers!
Hi, If you put down less than 20% don’t you have PMI? If so, is it still worth it?
Can you still use rental income if you're using your property for short term rental under a primary residence conventional loan?
Great content and really appreciate you both taking the time to add her to your channel.
Q: Wouldn’t a short term rental business always be schedule C? I feel like E would be for a long term rental business. Curious what others are doing.
4:28..why would anyone be renting already when an appraiser goes in if you haven't even closed yet?
Anyone invest in the panhandle of Florida market? Looking for a Lender that does DSCR or vacation home loans. Thx!
I would double check this, this 10% down program I learned from my lender this week has been taken away by Fannie Mae
Yup, same :(
What about under an LLC?
Do you need to own your primary residence to qualify for a second home loan?
No
Yeah, There is a difference between the interest rate between the 10%, 15%, 20% & 25%
I couldn’t help but notice how none of them talked about what the interest rate was for these 10% down payment loans are.
Honestly it comes of like a KIA commercial. They only talk about how little your down payment or monthly payment can be but never talk about what interest rate you will be paying or how long you have to make those low monthly payments for.
Typically you’ll get a 30 year fixed term with a second home loan. When this video was recorded, interest rates on a second home loan was pretty much in lock step with primary homes. Now, they’re about 1.5 to 2 points higher.
You and David Mayne should Collab!
According to my lender, Fannie Mae and Freddie Mac have literally just removed 10% down payments for second home loans and now require 20%, making that the new standard for most loans. Has anyone else experienced this?
Following
Changes coming April 1, 2022 I believe. You can still put 10% down but they add like 4.75% interest on top of prime rate. The more down payment you lay, the small amount of interest tacked on. That’s my understanding at least
How do I contact Brenna the lender
I know a good bail bonds guy just in case you go to jail. lol. Super informative video!
It's not fraud. The terms are you stay at the 2nd home 15 days through out the year.
Easier just asking the seller to take back a second for 10%
This was so informative! Any chance you could possibly share Brenna's contact info? Thanks!
It's in the caption
Anyone know of a lender in Texas able
to facilitate these loans?
Ha ha. Funny I just asked the same question. If you hear anything please let me know!!!
Go on over to bigger pockets for leads
Please forward Brennas information...
It's in the description and at the end of the vid! But MortgageShop.co
If you plan to rent it out, how is that not mortgage fraud?
You only have to stay there 15 days through out the year.
How is this not mortgage fraud ?
If your intention is to rent the property out for STR straight away, how is the underwriter approving your “second” home or “vacation” home?
Lender will call the loan and make you refi at a higher rate and larger DP (20-25%) down for a NOO investment loan
The staying for 15 days comment is also misleading as well.. it’s 14 days OR 10% of the number of days your rent it out (which ever is greater). This rule relates to the IRS (not lenders)
I’d be careful openly admitting that you are stating your “intention” is to live in the vacation home but the reality is you fully intend to rent it… obviously a gray area but many people will get burned. Im speaking from experience s my friend just got called on this lending approach.
How would they even know , that u stayed at that rental for 14 days lol
A job is an excellent and guaranteed way to make money.
People get fired every day
Requires 40 hrs + per week, far too much
@@colindougherty5729 short term rentals takes as much time. Add up all the late night guest calls and code enforcement calls from the city letting you know your guests are in violation.
@@duffer2307 I make $140K/yr in my W2 and I net $70k/ yr btwn my two STRs. I can remember maybe 1 middle of the night call in the last few years and I'm permitted for STR through the county and permitting was a little annoying, but reasonable. I average 3-5 hrs per week on my STR (2 hrs most weeks, but a few times per year I need to coordinate big things on the property) and 40 hrs/wk on my W2 job. I'm.making way more hourly on my STR. If you love what you do, like being a teacher or working on an important cause, then that's something additional that money doesn't provide.
@@colindougherty5729 your lucky then I call the police every weekend I have even had to get my shot gun evolved a few times. Lets just say my neighbor does not get high ratings for his air bnb