Conventional Loan

Lower rates and 10% down for vacation homes you also rent on Airbnb. Conventional second home financing from STR Home Loans.

Second Home Financing for STR Investors

If you plan to use your short-term rental property for personal vacations too, a conventional second home loan could save you significantly compared to investment property financing. With rates often 0.5-1% lower and down payments starting at just 10%, it's the smart choice for part-time rentals.

Who Qualifies?

Unlike DSCR loans, conventional second home loans require full income documentation. You'll need to qualify with your personal income and demonstrate the ability to carry both your primary mortgage and the second home payment. The property must be a single-unit home in a location that makes sense as a vacation property.

Balancing Personal Use and Rental Income

The key requirement is that you must use the property personally. Most lenders require at least 14 days of personal use per year or 10% of rented days. For many STR investors, this is easy — you get a vacation home that pays for itself the rest of the year.

Eligibility Requirements

  • Minimum credit score: 620
  • Second/vacation home use (some personal use required)
  • Single-unit properties only
  • Minimum 10% down payment
  • Must qualify with personal income (DTI)
FAQ

Frequently Asked Questions

Can I rent out a second home on Airbnb?
Yes, in most cases. With a conventional second home loan, you can rent the property when you're not using it. However, you must maintain some personal use — lenders typically want you to occupy the property for at least 14 days per year or 10% of the days it's rented, whichever is greater.
What's the advantage over an investment property loan?
Second home conventional loans offer significantly better rates (often 0.5-1% lower) and lower down payment requirements (10% vs 20-25%) compared to investment property loans. If you plan to use the property personally, this can save you thousands per year.
Are there location requirements?
The property should be in a resort or vacation area, or be a reasonable distance from your primary residence. It must be a single-unit property that you can reasonably use as a vacation home.

Finance Your Vacation Home

Enjoy lower rates and down payments with a conventional second home loan. Apply today and start building equity in your dream property.

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