🏡 Why Conventional STR Loans: Lower Rates, Smarter Leverage

🏡 The Conventional STR Loan Advantage

Most investors assume short-term rentals require exotic financing.

In reality, for the right borrower, a conventional second-home loan is often the cheapest, cleanest, and most powerful way to buy an STR.

The key?
Knowing if you qualify — and getting pre-approved before you start shopping.

👉 Speak with our STR Loan Partner about a Conventional Loan here

🏡 Who Conventional Loans Are Best For

Conventional (Second Home) loans are ideal for:

• W2 earners with strong, stable income
• Buyers with solid credit (typically 680+ preferred, 720+ ideal)
• Investors purchasing in vacation-friendly markets
• Buyers comfortable holding title in their personal name
• Those who want the lowest possible long-term interest rate

If you have strong income and clean financials, this is often the most efficient wealth-building structure available.

👉 See if you qualify for a Conventional STR Loan

✅ Why Investors Love Conventional Loans

Lower Interest Rates
Typically the lowest rates available for STR financing.

As Little As 10% Down
Preserve liquidity for furnishings, reserves, or your next deal.

No Prepayment Penalties
Refinance or sell whenever you want.

Long-Term Wealth Builder
Great for appreciation markets where you want to hold 10–20+ years.

Cleaner Loan Structure
Straightforward underwriting. No complex rental-income projections required.

If you qualify, this is often the cheapest cost of capital you’ll find in the STR world.

👉 Check Your Conventional Loan Options Here

⚠️ What to Know Before Choosing Conventional

It’s not perfect for everyone.

• You cannot use projected Airbnb income to qualify
• The loan must be in your personal name (not an LLC)
• It counts toward your personal debt-to-income ratio
• Mortgage insurance applies under 20% down

For high W2 earners, these are usually manageable tradeoffs.
For heavy portfolio scalers, it may limit speed.

The important thing is structuring it correctly from the start.

⚡ Why Pre-Approval Is a Massive Competitive Edge

This is where most investors lose.

Not because they picked the wrong property —
but because they weren’t financially ready when the deal appeared.

When you're pre-approved:

• Your offer carries more weight
• You can move immediately
• You negotiate from strength
• You avoid last-minute underwriting surprises
• You know your exact buying power

In competitive STR markets, speed wins.

👉 Get Pre-Approved Before You Start House Hunting

🧠 The Bottom Line

If you qualify, a conventional loan can be the most powerful and cost-effective way to buy your first (or next) STR.

Lower rates.
Lower friction.
Long-term flexibility.

But the advantage only works if you know you’re approved before you make offers.

👉 Connect with our STR Loan Partner & Explore Conventional Options

Because the smartest STR investors don’t just find great properties —
they secure the right financing first.