Question Details

John Gomez, Home Buyer in G.L. Lowery Industrial...

Rental Property Mortgage? Do I need it? Does it exist?

Asked by John Gomez, G.L. Lowery Industrial Park, Groveport, OH Mon May 20, 2013

I am buying a home in Maine, that I will use as a vacation home for a few weeks each year, but more then 60% of the year it will be rented out to others.

Does anyone know if I need a special mortgage or if I have to declare this use to the lender? I am looking to fund this as a second mortgage, but don't want to wake up in few months to find out I violated some clause in the agreement.

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Answers

1
You do have to disclose this to your lender. The thing is with rentals, is the mortgage will be considered commercial since you are profiting from the property. A lot of lenders won't give the low mortgage rates to people who are renting out the home. In my area, I've helped people who've bought homes as rentals and their interest rates were around 7% and some of the lenders required at least 20% down. The best advice I can give would be to explain your situation with a loan officer and shop around. Good luck to you!
1 vote Thank Flag Link Mon May 20, 2013
Thank you very much - truly appreciated.
Flag Mon May 20, 2013
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