Your 3 Best Options for Financing a VRBO Investment

VRBO, or Vacation Rental byOwner, has been a pioneer in vacation rentals since 1995. Similar to its newer rival, Airbnb, VRBO is a network that brings renters in touch with homeowners with vacation properties. While buyingVRBO investment propertiescan be lucrative, finding the financing for it is a key hurdle to overcome.

If you’re interested in capitalizing on in VRBO investments, let’s take a look at the financing options available to you.

There are a number of ways you can get money to invest in VRBO properties. Some of them take more finesse than others, but the variety of options ensures that you have a fighting chance of receiving financing.

One thing that’s important for you to understand is that as a rental venture, most banks will be averse to lending you money. Banks don’t like rental investments because of the risks, which means you’ll most likely have to seek funding elsewhere.

Companies like Vacation Rental Property Loans are in between banks and hard money lenders which is good news for you.The advantage is that you can get financed for VRBO investments and receive a better deal than you would at a bank.

If you’re wondering what option to go with, a Short Term Vacation Rental Financing loan is one of the best options available for raising capital on VRBO property acquisitions. 

These loans are tailor-made for VRBO investments. Up to 75% of the VRBO purchase price can be covered under these loans.

Vacation Rental Property Loans includes the following advantages in short term vacation rental loans:

• 3/1 ARM and 5/1 ARM with no balloon payments whatsoever
• Amortized loans with fixed rates
• No restrictions on how many properties are in your portfolio

With so many advantages, it’s easy to see that these specially designed loans are one of your best options for VRBO financing.

A lot of experts will advise you to take out a 30 year fixed rate loan, and for good reason. 30-year loans tout lower payments, and the fixed rate ensures that you won’t be frustrated with fluctuating interest rates month-to-month.

Other advantages include quick closing turnarounds, usually around 3 weeks. Qualification terms are impressively flexible asyou don’t have to be a current homeowner. While the minimum credit score range is 640, the higher your score the lighter your payments will be.

You can use your own title company although a National Underwriter is mandatory. Keep in mind that you’ll need to have a minimum of three to six months of PITI cash reserves as well. These reserves help offset risk and make payments until you start turning a profit in earnest. They also help keep up and deal with lulls in business and vacancies during slow periods.

Short term vacation home rental loans come in 30-year terms with a fixed rate. For a real-estate investor, that’s a great deal.While perfect for financing the purchase of individual VRBOs, you can use a blanket loan to purchase multiple properties.

You can benefit from using a blanket loan by receiving lower payments than if you were to apply for each property loan separately.

Whether you opt for a single vacation rental/Airbnb rental loan or an all-encompassing blanket loan, you can get lower payments by placing more money down on the property. While you should never buy a VRBO, or any property outright without financing it, you can benefit from paying part of it off in the beginning. When you buy a whole property using your own money, you’ll end up losing more of it on taxes.

If you pay off part of the purchase price and finance the rest, however, you’ll get to enjoy lower payments on your loan and your taxes.

When looking to invest in VRBO properties, finding the right lender to work with is imperative. If you go with the wrong one you can easily wind up neck high in payments and stuck in unfavorable contracts.

Trusted leaders like Vacation Rental Property Loansoffer unmatched flexibility and exceptional customer service. Better yet, you don’t have to furnish any tax returns to qualify. Credit scores of 640 make up the primary minimum requirement.

When you work with Vacation Rental Property Loans you can rest easy knowing you won’t be locked out of funding because of bankruptcy that happened over two years ago.

After you qualify for the loan, Vacation Rental Property Loans will supply you with the money you’ll need to get your feet wet in VRBO property investment.

Ready to start reeling in money from VRBO properties? Get the cash you need, with Vacation Rental Property Loans, the smart choice for VRBO investments. Vacation Rental Property Loans understands the VRBO market and is known to offer flexible financial accommodations.

Applicants who meet the minimum credit score requirement can be approved without having to supply tax returns. Whether you’re looking for a long-term or short-term partner in finance for buying a VRBO investment property, you’ve found the right place.

Vacation Rental Property Loans can get you the money to enter the profitable and exciting VRBO market, check it out!