After a few really nice days, looking outside to new snow in April makes me think about summer and vacations!! Is it time to think about a vacation home? Are you ready to escape to your happy place?
Second home financing is not that difficult – maybe it’s time to check to see what you qualify for! Typically you will need at least 10% down and your credit score will affect your interest rate.
The type of home sometimes affects your financing – are you looking at a cabin that may be seasonal? Sometimes it’s harder to finance a cabin that does not have a permanent heat source, we have an option to do that. It is a conventional mortgage and you need 10% down – it can be financed with a long term, fixed rate mortgage. In the past you may have had to do an adjustable rate or balloon mortgage with these homes. This can be a better option for you. If the home is a year round home, permanent heat source, it can be easier to finance – but you still need at least 10% down.
How do you qualify? Basically we will look at your debt to income ratio and make sure you qualify for both homes – your primary residence and your vacation home. If you don’t have enough money for the down payment, you may be able to pull some equity out of your current home to use for the down payment. Depending on your situation, you could do a second mortgage or possibly refinance your home to get the money you need for the down payment.
If you are thinking this is the year for that cabin, give me a call and we can get the process started!! Nothing sounds better than warm summer days by the lake!!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
