STR Home Financing | Short-Term Rental & Vacation Home Loan Experts at cmg home loans

Yes! Depending on your qualifications and the loan program, you may be able to purchase a short-term rental with as little as 10% down.

Certain second-home financing programs allow eligible borrowers to rent their vacation property when they're not using it personally, subject to occupancy and rental restrictions. Some investment-property programs also offer 10% down options.

Not necessarily! While traditional investment-property loans often require larger down payments, specialized financing programs may allow qualified borrowers to purchase an investment property with as little as 10% down.

The required down payment depends on the loan program, property type, credit profile, and other qualifications.

Yes, with certain loan programs. Some investment-property financing options allow borrowers to use eligible rental income to help qualify.

Depending on the program, lenders may consider market rent, documented rental history, or qualifying short-term rental revenue. Not every loan program permits projected STR income.

A Debt Service Coverage Ratio (DSCR) loan is an investment-property mortgage that primarily evaluates the property's qualifying rental income relative to its debt payments rather than relying on the borrower's traditional employment income.

DSCR loans can be particularly helpful for self-employed investors, business owners, and borrowers who have difficulty qualifying using conventional income documentation.

Yes! Certain investment-property and DSCR loan programs allow borrowers to purchase or refinance properties in an LLC.

This can be attractive to investors who prefer holding rental properties through a business entity. However, personal guarantees may still be required, and LLC ownership is generally not permitted for standard conventional second-home financing.

The biggest difference is how you intend to use the property.

Second-home financing is designed for borrowers purchasing a vacation home for their own personal use. Eligible borrowers may be permitted to rent the property when not using it, but the property must satisfy the lender's second-home occupancy requirements.

Investment-property financing is intended for properties purchased primarily to generate rental income. These programs generally offer greater flexibility for properties operated as short-term rentals.

Absolutely! Depending on your property's value, existing mortgage balance, and qualifications, you may be eligible for a cash-out refinance or a second-lien loan.

Investors commonly access equity to purchase additional properties, renovate existing rentals, or fund other investments. Available loan-to-value limits and cash-out restrictions vary by program.

Not when you work with a lender who understands short-term rental financing.

STR financing requires an understanding of occupancy classifications, rental-income guidelines, property eligibility, and specialized investor loan programs.

Working with a mortgage team experienced in vacation homes and STR investments can help you identify financing options that fit your goals.