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At Visio Lending, we take pride in on our ability to make sense of underwriting short-term rents to help investors across the country grow their vacation rental portfolios. Our vacation loans, like all our loan programs, are DSCR-based, meaning we focus on property cash-flow rather than personal income. We have a very innovative program to help investors thrive. Here are some of the key details on our Vacation Rental Loan Program structure and general requirements:
Loan Purpose- Purchase, Rate & Term Refinance, Cash-Out Refinance
Loan Type- Single Asset or Portfolio
Rate Structure- 5/1 ARM, 7/1 ARM, 30-Fixed
Loan Amount- $75,000- $2 Million (call for hire amounts)
Loan-to-Value (LTV)- 80% Purchases and Rate & Term Refinances, 70% Cash-Out Refinances
Minimum Property Value- $125k (higher minimums in certain areas, see our FAQ Page for more details)
Geography- Nationwide, except for Alaska, Delaware, Idaho, Minnesota, Nebraska, Nevada, North Dakota, Oregon, Rhode Island, South Dakota, Utah and Vermont. See our Where We Lend Page for a full list of states we lend in and some of our recently closed loans
Property Type- Vacation Rentals that are 1-4 Unit Single Family Residential, Condos, or Townhomes
Valuation Type- As is Appraisal with Actual Rent Value or Expected Rents for Gross Vacation Rental Income
Borrower Type- Investor Only, Individuals LLCs, corporations and limited partnerships. U.S. Citizens, permanent and non-permanent resident aliens.
FICO Score- Minimum 680
Reserves- Minimum 6 Months PITIA (Principal, Interest, Taxes, Insurance, Association Dues)
Looking to grow your vacation rental portfolio? Contact us to get started. For more information on our loan programs, see our Loan Program Page. For tips on vacation rental property management, see our Vacation Rental Resources Page.
Editor's Note: This post was originally published in April 2019 and has been updated in December 2020 for freshness and accuracy.