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. 

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48 Properties
Page 1 of 4
$6,495,000
Neighborhood: Snow Park Subdivision
5
Beds
5
Baths
5,700
Sq.Ft.
2007
Year Built
1
Day on Site
12202065
MLS
Ideally located in Old Town and a short walk to Lower Deer Valley, enjoy the open floorplan and views from this private location. Designed around the views and the undevelopable lot next door, enjoy...
$2,495,000
Neighborhood: Pendry Residences Park City
2
Beds
2F11/2
Baths
1,399
Sq.Ft.
2021
Year Built
1
Day on Site
12202679
MLS
Privately perched above the Pendry plaza, this fully furnished 2BR penthouse is a great place to unwind at the Pendry Park City. Offering some of the best ski and mountain views from a 2BR at the...
$975,000
Neighborhood: Heber City
4,825
Sq.Ft.
2023
Year Built
1
Day on Site
12204033
MLS
Calling all investors, business owners, outdoor enthusiasts, hobbyists, and car collectors! Mountain View Commons is ideally located in the fast growing Heber Valley at the highly visible...
$975,000
Neighborhood: Heber City
4,825
Sq.Ft.
2023
Year Built
1
Day on Site
12204035
MLS
Calling all investors, business owners, outdoor enthusiasts, hobbyists, and car collectors! Mountain View Commons is ideally located in the fast growing Heber Valley at the highly visible...
$1,425,000
Neighborhood: Hart Crossing
3
Beds
3F11/2
Baths
2,597
Sq.Ft.
2022
Year Built
1
Day on Site
12204036
MLS
This one-of-a-kind conservation subdivision is surrounded by grassland acres that are never to be built on. It was designed to be that way! Combine scenic beauty of Kamas Valley with convenience and...
$1,050,000
Neighborhood: Heber City
4,825
Sq.Ft.
2023
Year Built
1
Day on Site
12204037
MLS
Calling all investors, business owners, outdoor enthusiasts, hobbyists, and car collectors! Mountain View Commons is ideally located in the fast growing Heber Valley at the highly visible...
$290,000
Neighborhood: Prospector Square Condos
1
Beds
1
Baths
315
Sq.Ft.
1978
Year Built
1
Day on Site
12204039
MLS
This recently updated studio condo located near the heart of Park City is perfect for anyone looking for a cozy spot located near all the adventure that Park City has to offer. Comes fully furnished...
$1,790,000
Neighborhood: Park West Village
4
Beds
3
Baths
2,590
Sq.Ft.
1991
Year Built
1
Day on Site
12204040
MLS
Absolutely dreamy home in coveted Park West Village nestled at the base of Canyons Ski area giving you access to skiing, hiking, biking, dining, shopping or anything Park City the local, free bus...
$1,385,000
Neighborhood: Hart Crossing
3
Beds
2F11/2
Baths
2,597
Sq.Ft.
2022
Year Built
1
Day on Site
12204041
MLS
This one-of-a-kind conservation subdivision is surrounded by grassland acres that are never to be built on. It was designed to be that way! Combine scenic beauty of Kamas Valley with convenience and...
$975,000
Neighborhood: Heber City
4,825
Sq.Ft.
2023
Year Built
1
Day on Site
12204042
MLS
Calling all investors, business owners, outdoor enthusiasts, hobbyists, and car collectors! Mountain View Commons is ideally located in the fast growing Heber Valley at the highly visible...
$815,000
Neighborhood: Heber City
5
Beds
2F13/411/2
Baths
2,869
Sq.Ft.
2017
Year Built
1
Day on Site
12204043
MLS
Nested on a quiet street in an amazing Heber neighborhood called Wheeler Park, this home is perfect for families of all sizes. Featuring a fully fenced backyard and large deck made for entertaining...
$3,950,000
Neighborhood: Snyders Addition
4
Beds
2F11/2
Baths
2,661
Sq.Ft.
2016
Year Built
2
Days on Site
12204018
MLS
This newly built mountain-modern luxury home is located in the heart of Park City's historic Old Town neighborhood. Offering the convenience of a short walking distance to skiing at the base of Park...

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