Vacation Home & Second Home Equity Loans
Have equity in your vacation home, lake house, or beach cabin? We offer cash-out refinance loans on second homes and vacation rentals — including short-term rental properties listed on Airbnb or VRBO. No income documentation required on select programs.
Program Highlights
- Up to 75% LTV on non-owner-occupied vacation rentals
- Up to 85% CLTV on true second homes (personal use)
- Qualify using short-term rental income (Airbnb/VRBO history accepted)
- No tax returns or W-2s on DSCR programs
- 30-year fixed, 5/1 ARM, 7/1 ARM, interest-only options
- Loan amounts from $100,000 to $5M+
- Texas, Florida, Colorado, and nationwide
- Close in 14–21 business days
What Counts as a Vacation Home?
A vacation home is a property you personally use part of the year — a lake house in the Texas Hill Country, a beach condo in Galveston, a ski cabin in Colorado. If you also rent it on Airbnb or VRBO, it may be classified as a short-term rental investment property for lending purposes. We lend on both — but the programs differ slightly.
Popular Texas Vacation Markets We Lend In
Texas Hill Country
Fredericksburg, New Braunfels, Wimberley, Marble Falls — strong STR demand year-round.
Gulf Coast
Galveston, South Padre Island, Rockport — high seasonal rental income, beach property appreciated significantly.
Lake Travis / LBJ
Austin-area lakes — premium nightly rates, strong cap rates on short-term rental properties.
Big Bend / West Texas
Terlingua, Study Butte, Marfa — unique STR market with high nightly rates and growing demand.
Using Short-Term Rental Income to Qualify
Own an Airbnb or VRBO? We accept 12 months of STR income history (from your hosting platform statements) as qualifying income on DSCR programs. No lease required. If the property is new to STR, we use a market rental analysis from the appraisal.
Vacation Home Loan Terms
| Loan Feature | Second Home (Personal Use) | Short-Term Rental (STR) |
|---|---|---|
| Maximum LTV | Up to 85% CLTV | Up to 75% LTV |
| Income documentation | W-2 or bank statements | Not required (DSCR) |
| Qualifying income | Personal income | STR rental income |
| Interest rate | 7% – 9% | 7.5% – 10% |
| Loan terms | 30-yr fixed, 15-yr, ARMs | 30-yr fixed, 5/1 ARM, I/O |
| Minimum loan | $100,000 | $100,000 |
| Credit minimum | 620 FICO | 620 FICO |
| Entity eligible | Individual only | LLC, LP, individual |
Why Banks Reject Vacation Home Equity Loans
Traditional banks typically offer HELOC and cash-out products only on primary residences. A vacation home — especially one listed on Airbnb or VRBO — is classified as non-owner-occupied, which puts it outside most bank HELOC programs entirely.
Additionally, variable STR income makes it hard to qualify under conventional debt-to-income guidelines. The income counts differently (or not at all) on bank applications. We solve this by using DSCR qualification — the property’s rental income is what matters, not your personal tax return.
Popular Uses for Vacation Home Equity
- Renovations and upgrades — pools, hot tubs, upgraded kitchens that increase nightly rates
- Purchase another vacation rental — use equity in one property to fund the down payment on a second
- Debt consolidation — pay off high-interest debt with lower-rate mortgage equity
- Buyout a co-owner — refinance and pay out a family member or business partner
- Fund another investment — pull equity tax-free to deploy into the next deal
Second Home vs. Investment Property — Lending Difference
This classification matters for your rate and program. Lenders define it this way:
- Second home: You occupy the property part of the year and it’s not primarily rented. Must be 1-unit, in a reasonable distance from your primary, and can’t be managed by a rental company. Slightly better rates.
- Investment / STR property: Primarily rented — even if you stay there occasionally. Treated as non-owner-occupied. Our DSCR and investor programs apply. LTV capped at 75%.
If your property is on Airbnb full-time, it’s an investment property for lending purposes — and that’s fine. Our STR DSCR programs are built for exactly this.
Vacation Home Equity Loan FAQ
Can I get a HELOC on my vacation home?
Traditional HELOCs on vacation properties are rare — most banks only offer them on primary residences. What we offer is a cash-out refinance: you replace your existing mortgage with a new, larger loan and pocket the difference at closing. This achieves the same goal (accessing equity) through a different structure.
Do I need a lease to qualify on my Airbnb property?
No. For short-term rentals, we use either 12 months of actual STR income history from your hosting platform or a market rental analysis provided with the appraisal. A long-term lease is not required. If the property is newly converted to STR, we rely on the market analysis.
What DSCR is required on a vacation rental?
Most programs require a DSCR of 1.0 or better — meaning the property’s income at least equals its monthly payment. Some programs allow below 1.0 DSCR with a higher down payment or stronger credit profile. STR income is calculated on an annualized basis, divided by 12 for the monthly figure.
Can I take cash out of a vacation rental I own free and clear?
Yes — this is one of the easiest scenarios. A free-and-clear vacation rental is a straight cash-out refinance. At 65–75% LTV, you can pull significant equity without affecting your primary residence at all. We lend up to $5M on single transactions.
What states do you lend in for vacation homes?
We lend in 45 states. Popular vacation home markets we actively fund: Texas (Hill Country, Gulf Coast, lake properties), Florida (beach and golf communities), Colorado (ski and mountain properties), North Carolina (mountain cabins), Tennessee (Smoky Mountains), and Arizona (resort and desert properties). Call us about your specific market.
Own a vacation property with equity? Get a free cash-out quote today — no income docs required on STR programs.