How Much Down Payment Do I Need For A Rental

Now is a great time to begin owning a vacation rental in Park City Utah. The market for vacation rentals is high and demand is steady year-round. If you’re looking for a vacation home that you can use as an income property when you aren’t there or a property that is strictly a short-term rental, you’ll need to familiarize yourself with different financing expectations than you would with a primary residence.How Much Down Payment Do I Need For A Rental

Lenders will want to see that you are totally financially ready to take on this additional debt and will likely require more evidence of this than the lenders for your home. The more you know what to expect, the better prepared you will be to secure the right rental for the right price.

Down Payment

You should expect to make at least a 20% down payment. While there are some options to get a second mortgage to cover the down payment or put as little as 10% down, in general, you will find it quite difficult to purchase an income property for less than 20% down, especially if your credit score is any lower than 740.

More realistically, you will likely be asked to put down 20% unless you have stellar credit and minimal debt. Mortgage lenders will be looking for greater security on an investment property’s mortgage than they would on a primary residence, and you will not have the same down payment assistance programs available to you as you would when purchasing your home.

More: Common things to look out for before buying your dream home

Other Considerations

Keep in mind when you are planning for your down payment that other cash may be needed upfront when you buy your vacation rental. Closing costs, repairs, and renovations need to be taken into consideration when you calculate your costs and what you really can set aside for a down payment. A 20%-30% down payment will be ideal, in addition to your other upfront costs. If this isn’t feasible, but you are otherwise in a good position to buy a Park City rental, some sellers will be interested in owner financing. In this case, there may be more flexibility to offer a smaller down payment in exchange for a higher interest rate. If you and your real estate agent are able to negotiate a deal, you may find a way to purchase the rental you want without having a 20% down payment ready.

 For more information on rental investment properties in Park City contact us below or browse new listings today. 

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
82 Properties
Page 1 of 7
$2,300,000
Neighborhood: Foothill Estates
5
Beds
3F11/2
Baths
4,548
Sq.Ft.
2005
Year Built
2
Days on Site
12201942
MLS
This gorgeous home is a jewel of the Kamas Valley. The five large bedrooms give everyone the perfect place to retreat with privacy, and the large kitchen, great room, dining, oversized patio and deck...
$2,970,000
Neighborhood: Dutch Fields
5
Beds
4F11/2
Baths
5,995
Sq.Ft.
2010
Year Built
2
Days on Site
12201943
MLS
It is not often a home comes to market that has forever been the envy of a neighborhood. This is your opportunity to own an amazing home, in an amazing community, with an amazing view. Located in...
$1,025,000
Neighborhood: Cottages At Canyon View
3
Beds
2F11/2
Baths
2,500
Sq.Ft.
2019
Year Built
2
Days on Site
12201948
MLS
Incredible mountain views in three directions from your expansive back patio. Access world class skiing at Deer Valley just minutes away. Park City Mountain and Sundance Resort are only a 25-minute...
$3,400,000
Neighborhood: Skyridge
4
Beds
4F23/4
Baths
4,768
Sq.Ft.
2022
Year Built
2
Days on Site
12201949
MLS
Lot #64 - Stunning Lake and Mountain Views from a coveted downhill homesite in the Ursa Subdivision of SkyRidge Mountain Community. Mountain contemporary design located on the northwest shore of the...
$6,100,000
Neighborhood: Knoll Estates/Deer Valley Club Estates
6
Beds
3F23/411/2
Baths
5,820
Sq.Ft.
1996
Year Built
2
Days on Site
12201950
MLS
Remarkable Opportunity in the private gated Knoll Estates Silver Lake Village. This Deer Valley Property provides a short walk to Utah's most amazing skiing, hiking, biking, and several 5 star...
$3,900,000
Neighborhood: Wild Mare
6
Beds
6F21/2
Baths
7,457
Sq.Ft.
2018
Year Built
2
Days on Site
12201951
MLS
Beautiful Modern Farm House situated on 5+ acres of horse pasture and hay fields with Irrigation water shares! This is a home that truly offers it all! This home also includes an enormous 40' X 60'...
$7,599,000
Neighborhood: Utah Area
7
Beds
7F31/2
Baths
12,931
Sq.Ft.
2003
Year Built
2
Days on Site
12201953
MLS
Imagine coming home down a private lane that leads to your own secluded, gated estate with a heated paver driveway surrounded by massive mature pine trees and a fully fenced yard for kids and/or...
$2,590,000
Neighborhood: Red Ledges
4
Beds
4F11/2
Baths
3,571
Sq.Ft.
2014
Year Built
2
Days on Site
12201954
MLS
Traditional custom home in Red Ledges overlooking the 5th fairway at the Jack Nicklaus Signature Golf Course. Come and see this beautiful four bedroom 4.5 bath custom home designed by Kevin Price....
Open 5/25
14054 N Council Fire Trl Kamas, UT 84036
$750,000
Neighborhood: Black Rock Ridge
2
Beds
2
Baths
1,283
Sq.Ft.
2007
Year Built
2
Days on Site
12201955
MLS
Location, convenience, trails and a car and toy lovers delight. Have you ever dreamed of a condo with a huge garage? You know you have. This stellar pad has what you want to make your Park City area...
$800,000
Neighborhood: Swiss Alpenhof
6
Beds
5
Baths
5,521
Sq.Ft.
2019
Year Built
2
Days on Site
12201956
MLS
Wonderful opportunity to customize this stunning Midway 2 Story home. Situated on lot 19 in Alpenhof Estate, a very sought after neighborhood in beautiful Midway. This home is being offered as is...
$1,070,000
Neighborhood: Greyhawk
2
Beds
2F11/2
Baths
1,285
Sq.Ft.
1997
Year Built
2
Days on Site
12201959
MLS
Looking for a great central location with easy access to Deer Valley, Park City and all the fun in Old Town? Check out this well maintained, updated. 2 bedroom, 2 1/2 bath condo at Greyhawk. The free...
$1,350,000
Neighborhood: Swiss Mountain Estates
5
Beds
4
Baths
5,533
Sq.Ft.
2022
Year Built
2
Days on Site
12201960
MLS
Scotch Fields is a development of 89 home sites in the Northwest corner of Midway near the entrance to Wasatch State Park and Golf Course. There are walking and biking trails throughout the community....

Post a Comment