Mortgage guidelines are positively prehistoric when compared to newer companies like AirBnB and VRBO, which have gained popularity as interest in short-term rentals has increased.
But when it comes to getting a home loan on a property that is not your primary residence, you have to state on your mortgage application whether you have a second (or vacation) home or you have a rental (aka investment) property, and there is no middle ground for a "vacation rental." However, there can be real consequences if you get the classification wrong.
So, let's rock the distinction between vacation … (11 comments)
Looking to purchase or refinance a home for your elderly parents who wouldn't otherwise be able to obtain a mortgage on their own?
Looking to assist a disabled or special needs adult child with housing or his/her own?
Or how about putting a college-bound child into off-campus housing that you decide to purchase?
All of these are both common scenarios and often difficult ones as viewed by the inflexible guidelines in the mortgage industry. Until now...
The Family Opportunity Mortgage can be a great way to thread the needle of otherwise detrimental occupancy requirements for primary homes, second or … (4 comments)
Who, stateside, doesn't at least want to entertain the idea of calling it a long work week, heading to the airport and then a few hours later touching down on one of the Hawaiian islands? What if you're on the cusp of that reality and have decided to buy a second home in Hawaii and need a jumbo mortgage to help you achieve that goal? I am a licensed mortgage loan originator in Hawaii, can help and here's what my clients need to know.
What Is a Second Home? While any vacation residence … (0 comments)
I was just trying to help the guy out. He wanted to refinance his mortgage but his credit scores and debt-to-income ratio prevented him from doing so. His response was not all that unusual. "This makes no sense! I'm already paying the higher mortgage so why won't you let me get a lower payment? Do you think I'm going to have trouble making the lower payment?"
Look, I see the logic here. But I had to explain that the CFPB and our "looking-out-for-the-consumer" regulators have clearly dictated to us lenders what we can and cannot do and if you don't qualify for … (6 comments)
Stated income. No other phrase in the realm of home lending evokes as many good and bad memories, does it? For some --- mostly loan originators who wore an ethical stripe of a different color --- the days of the liar loans are fondly remembered as "the boom years." So too by their customers, suspecting or otherwise. Though in that case the "boom" signaled the implosion of their financial houses, often along with the four walls they inhabited.
But we're not going down that memory lane again today and we're definitely not talking about some no doc … (20 comments)
My name is Rob Spinosa. I'm a workaholic. And despite the growing body of scientific evidence that is building behind the necessity of vacations, I still do not get away from the office nearly enough. Some of our clients, on the other hand, have this part of their life mastered and they are considering the purchase of a second or vacation home. I'd like this meeting to focus on them and what's really involved in getting a home loan on a vacation home? Let's look at the basics first:
...is anybody even asking the question? Shall we then conjure The Bard to determine not whether renting out some or all of your home(s) through Airbnb or VRBO is a good idea itself, but once done is done, to know how thee mortgage lenders may view thine income? Whilst the "collaborative consumption" economy may be in full, progressive and dynamic bloom, a rose by any other name, like the mortgage industry for example, can be quite slow to see the light. True, our dagger may well be perceived dull held alongside the cutting edge of the Uber-net. So to venture … (82 comments)
How to Rock Second Home or Rental Property?
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