STR Financing and Preapproval

We will connect you with our preferred lenders to compare options based on your income, credit, available cash, property and intended use. We explore lower-down-payment options where you qualify, but the product must fit how you will actually use the property. Compare the monthly payment, closing costs, reserves and loan restrictions, not just the down payment.

Second-home financing generally qualifies you using your personal income, debts and credit. The property must meet second-home occupancy requirements; it is not simply a lower-down-payment option for a dedicated rental. Fannie Mae occupancy requirements

DSCR financing is designed for investment properties and primarily evaluates qualifying rental income against the property’s debt payments. Credit, down payment and reserves still matter. DSCR loans often require more money down and may include prepayment penalties, so review the full terms. DSCR lender guidance

General planning ranges are:

• Second-home loan: As little as 10% for an eligible property and qualified borrower.
• Conventional investment loan: Often 15–25%; some eligible one-unit purchases allow 15%.
• DSCR loan: Commonly 20–25%, though lender programs and property qualifications vary.

These amounts exclude closing costs, required reserves, furnishings and renovation funds. Your lender will confirm the actual cash requirement. Conventional eligibility matrix, DSCR down-payment guidance

Yes. Property type, condition, purchase price, appraisal, qualifying rental income and insurance costs can affect which products are available and how much you need to put down. Your lender should evaluate the specific property before you rely on a financing assumption in an offer.

Immediately after onboarding. Early preapproval helps establish your budget, identify documentation needs and prepare you to act when we find the right property. Keep your lender updated about significant financial changes.

A lender may be able to issue or update a preapproval the same day if your application and documentation are complete. Timing depends on the lender and your situation. Final loan approval requires underwriting and property review, so a preapproval is not a guarantee of funding.

Yes, but tell us immediately so we can coordinate the change. A new lender may need additional documentation or a new appraisal, and we may need to request a closing extension. Review your financing deadlines and any costs already incurred before switching.

Yes. Conventional second-home and conventional investment loans generally require individual borrowers, subject to limited exceptions. Many DSCR and other business-purpose investment products allow LLC borrowers, often with a personal guarantee.

Confirm the borrower and deed requirements with your lender before forming your closing plan. Fannie Mae borrower requirements, DSCR personal guarantee guidance

Seller credits can reduce eligible closing costs, prepaid expenses and approved rate-buydown costs. They generally cannot cover your required down payment or reserves, and you cannot assume unused credits will be paid to you in cash.

Limits depend on the loan program and down payment. Under standard Fannie Mae rules, a second-home purchase with 10% down generally allows financing concessions up to 6%, while investment-property financing concessions are generally capped at 2%. Credits also cannot exceed actual eligible costs. DSCR limits vary by lender. Fannie Mae seller-credit rules

Our TC team will coordinate with your lender and title company to confirm the allowable amount and uses before closing. Do not assume renovation, furnishing or vendor invoices qualify simply because they are paid through title.