With easy money loans, Americans Are Creating Empires of Vacation Homes

The surge is being fueled by an exclusive type of company loan. It enables borrowers, particularly those who are self-employed, to qualify using the property's anticipated future income rather than their own salary. They are referred to as "debt service coverage ratio" loans in the industry's parlance since rents must at least cover monthly mortgage payments. According to an examination of mortgage bond offers by industry publication Inside Mortgage Finance, investment property loans made last year totaled $9.9 billion, a rise of eight times since 2018. The majority was eligible due to rental income.