Can You Get a Mortgage for a Vacation Home?
The answer is yes. Vacation property mortgages, also known as second home mortgages, are available through the nation’s leading lenders and financial institutions. These mortgages are designed for the sole purpose of purchasing a second property. Depending on your lender and your financial situation, you may even have the freedom to choose between a variable or fixed-rate mortgage.
Call our firm today to learn more about a mortgage refinancing and the options available to you.
What Properties Qualify as Vacation Homes?
Vacation homes come in all sizes. Some are lakeside, while others are nestled within vast mountain ranges. Whether or not your property qualifies for a vacation home mortgage will depend on several factors. The property must meet these following requirements:
- Single-unit property
- Available and suitable for year-round use
- Owner-occupied for some portion of the year
- Controlled by the owner rather than a property management company
To find out if your dream vacation property classifies as a vacation home, get in touch with our team of brokers today.
Are Interest Rates Higher for Vacation Homes?
Some lenders consider loans for second properties to be high risk. As a result, they may set higher interest rates on their mortgages. That said, there are many factors taken into consideration when determining your interest rates, such as your credit history and employment status. Our brokers will see to it that you obtain the most favorable interest rate possible.
How Much of a Down Payment Do You Need on a Vacation Home?
Down payments for vacation homes vary. Cottages and other homes are classified as Type A, and Type B. Type A cottages require a minimum down payment of 5%. Type B cottages, on the other hand, require a minimum down payment of 10%. To determine what type of down payment you need for your vacation home, schedule a consultation with one of our brokers.
What Are the Benefits of a Vacation Home Mortgage?
Financing a vacation home is a great way to broaden your financial portfolio. Having a second home or cottage gives you the opportunity to capitalize on property appreciation rates. In several years, you could stand to turn a profit on your property. With a low-interest mortgage, that profit could be even greater. Discover the many benefits of vacation home ownership—call us today.
Secure Your Vacation Home Mortgage Today
Whether you’re looking to finance a property that you can enjoy all year round or during the summer holidays, our firm can help you. We’ll pair you with the right lender and advocate for the most favorable vacation home mortgage terms possible. Call (888) 418-6979 today.