With approximately one million people having purchased vacation homes in the last year, this type of residence is gaining popularity for those who are interested in a home in a beach setting or a vacation hot spot. However, while a second home can seem like a great purchase and solid investment opportunity, there are different requirements that go into this type of purchase. If you’re considering a vacation home, you may want to be aware of the following financial factors.
The Down Payment Amount
If you currently have a primary residence, you may be aware that you don’t need to put down 20% or even 10% in order to make a home purchase, but things are different when it comes to a vacation home. Because you will be taking on an additional mortgage, there is greater risk involved, and this means you will likely have to put in at least 10 percent. Because of this, many homebuyers utilize the equity they have in their first home to make up the down payment.
About The Credit Score
Most people that have a credit score of more than 500 have the ability to use a mortgage product and purchase a home, but if you’re buying a second property, you’ll need a higher credit score in order to facilitate the purchase. Because there is more risk involved, lenders will want to make sure you’re a good bet. In addition, if you do have a lower credit score, lenders like Fannie Mae may also expect you to put more down to decrease the risk involved for them.
The Income Required
Since you’ve been through the mortgage process for your first home, you’re probably aware that you debt-to-income (DTI) ratio needs to be a certain amount in order to qualify for a mortgage. While your DTI for a primary residence may be a little bit higher since it’s your only payment, this ratio will be lower for your vacation home since it’s higher risk. This means you’ll require a slightly higher income than for your primary residence in order to get approved.
Deciding to purchase a vacation home can be a very exciting concept for many people, but there are a number of different financial requirements that go along with buying another residence. If you’re in the market for a vacation property and are curious about what’s involved, give me a call to get you on the right track – J.P. Cook – 602-320-4253.
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4645 N 56th Street
Phoenix, AZ 85018
$6,995,000
5
Beds
5.5
Baths
5,710
SqFt
Status
Active
MLS #
6634116
Property Type
Single Family Residence
Price Type
--
Another masterpiece from Santorini Homes, one of the finest Luxury home builders in Arizona. Construction to begin early 2024, so to put your touches on this beautiful mountainside home you must hurry. Santorini was also the developer of this 3 home subdivision, this home is destined to be another classic home with 5,710 sq ft, a 4 car garage, pool, pickle-ball court, and stunning views of Phoenix. Centrally located to all the best attractions in the Phoenix/Scottsdale/Paradise Valley areas, this new home will exude class and sophistication for decades to come
6601 N 40th Street
Paradise Valley, AZ 85253
$6,988,888
6
Beds
7
Baths
6,896
SqFt
Status
Active
MLS #
6772832
Property Type
Single Family Residence
Price Type
--
Experience this stately property with epic Camelback Mountain views, rare Downtown City Light views, and enormous Phoenix Mountain Preserve views; offering a stunning single level main residence, attached guest house, and a detached guest casita. This estate offers the best of both worlds, elevated hillside views and a large flat lot with an entertainer's yard and view deck. The brand new single level home offers a main residence with 4 large en-suites, 4.5 bathrooms, plus an office, 2 fireplaces, waterfall, firepit, butler's pantry, key drop, and large laundry. The attached Guest House offers 1 bedroom, 1 bathroom, family room, kitchenette, and laundry. The detached guest casita offers a full bathroom and large room which can double as garages for a total of 6 air conditioned garages!
4350 N Jokake Drive
Scottsdale, AZ 85251
$6,980,000
5
Beds
5.5
Baths
6,750
SqFt
Status
Active
MLS #
6716654
Property Type
Single Family Residence
Price Type
--
This is a very special home created by long time Arcadia builders Mike and Kim Krogh. The lush acre plus lot is one of the best in the neighborhood with exceptional curb appeal and a backyard that is the depth of an actual football field with a new pickle ball court and adjacent shaded ramada to relax under between games. Every surface in the home is brand new, and the modern architecture perfectly combines elegance and comfort with clean lines and fresh finishes at every turn. The neutral palette and perfectly placed splash of color create organic beauty and a truly serene vibe. The double island kitchen is exquisite, the living spaces are exceptional, all the bedrooms and baths are beautiful and the unique designer finishes include wood flooring, artistic tile, marble, quartz, wood
26761 N 98th Way
Scottsdale, AZ 85262
$6,950,000
4
Beds
5
Baths
7,106
SqFt
Status
Active
MLS #
6665458
Property Type
Single Family Residence
Price Type
--
An extraordinary property nestled just under Pinnacle Peak on the highest lot in Estancia * A exceptional example of tradition, charm & elegance designed by Jeff Biever and built by Bob Byrd * Split floor plan with a large master suite that includes a sitting area and office * Beautifully landscaped hillside setting with a negative edge pool that spills toward spectacular city light, mountain and golf course views * Interior details and materials include travertine and flagstone flooring, granite and marble surfaces and hand-carved doors and cabinetry * A separate entrance guest house with kitchenette completes the residence *
4116 E Mountain View Road
Phoenix, AZ 85028
$6,950,000
7
Beds
7.5
Baths
7,427
SqFt
Status
Active Under Contract
MLS #
6691499
Property Type
Single Family Residence
Price Type
--
Experience the pinnacle of luxury living with this extraordinary new construction estate, where every detail exudes unparalleled craftsmanship and sophistication. A harmonious blend of timeless elegance and contemporary grandeur. Designed to captivate the senses, the architectural brilliance of this estate is shown in every detail, from the majestic facade to the spectacular interior spaces. Just wait to experience the game of lights and the impressive LED designs. Expansive and bright living space open to a state of the art kitchen. Absolute culinary masterpiece with top of the line appliances, quartzite counters, custom cabinets, designer lights and fixtures. A second island for dining purpose available to be installed if Buyer wishes. Generous fully equipped butlers pantry adjacent to the kitchen. The heart of the home is a glorious contemporary fireplace dividing the space to offer versatility. Store your wine collection in the oversized climate controlled wine vault. The primary suite offers a wealth of luxurious amenities. 2 water closets, 2 custom walk-in closets, colossal multi-head shower room, soak-in tub. From your bed you get to enjoy the breathtaking views of your resort style backyard. All bedrooms are huge with their own lavish en-suite bathrooms located near a second living room. Wait to see the casita - elegant and private with full kitchen, laundry room, private entry and access to the garage and backyard.The outdoors space is every entertainer's dream - fireplaces to bring all the drama, Caribbean water color heated pool&spa, shower, turf and real grass, pickleball & basketball court, outdoor kitchen. Oh and those mountain views & stunning Arizona skies. Speaking of views, go up to the overlook deck and marvel at the serene beauty and awe-inspiring city lights and dreamy mountains. Landscaping is a perfection- a flawless symphony embracing the charm of the enchanting Sonoran desert. Highest tier energy efficient home.Prime location near A+ rated schools, fine dining, hiking, shopping, resorts. Easy access to 51 freeway that can take you to sought after venues within minutes.
5400 E Valle Vista Road Unit 6
Phoenix, AZ 85018
$6,950,000
5
Beds
6.5
Baths
10,519
SqFt
Status
Active
MLS #
6765140
Property Type
Single Family Residence
Price Type
--
Highest Home on the south of Camelback with spectacular vistas. Very private gated estate sits on almost 3.5 acres. 10,500+ sf of living, 7 car garage, 12,000+ sf patios with magnificent views floating over Phx & Scottsdale. Main house includes huge master suite, gym, theatre room, wine cellar, billiards rooms, office & 2 very large private guest suites. Negative edge pool & hot tub, BBQ, perfect for entertaining. 2B/2BA Guest home large w/living room & full kitchen. Property also has an art studio, workshop, & storage. An opportunity to do a light remodel but value is in the land. Build a trophy estate on Camelback with the city allowing 37,000+ sf of lot disturbance and little to no pad prep to build the ultimate estate.
5143 E Exeter Boulevard
Phoenix, AZ 85018
$6,950,000
6
Beds
7
Baths
6,508
SqFt
Status
Active
MLS #
6628909
Property Type
Single Family Residence
Price Type
--
On the hottest corner in Arcadia is a rare Bauhaus-inspired modern by architect David Dick. The epitome of style, luxury, quality and privacy. Enter from Exeter to a grand natural light-filled great room with 20ft ceilings. Gourmet kitchen with a giant island. Two split ensuite bedrooms on 1st floor. Third ensuite on 2nd floor. Catwalk to the main bedroom with an incredible bathroom and giant closet with clerestory view of the iconic profile of Camelback. Morning light-flooded east living room with a patio, large loft upstairs featuring the best views in the house. Full guest quarters AND an office - both with private entrances. Newer heated (and chilled) pool. Extra top-level features - backup gas generator, elevator, automatic gates. Like-new condition t/o. Much more - Check Docs. There is nothing in Phoenix quite like classic Arcadia. Nestled against the majestic backdrop of Camelback Mountain, this scenic neighborhood offers a perfect blend of natural beauty and urban convenience. Citrus-lined streets harken back to the early grove years of the area, large lots offer privacy, and a mix of architectural styles adds character to the community. Top rated schools and community centers. Unmatched proximity to downtown Phoenix and Old Town Scottsdale offers best food, shopping and entertainment options nearby. Experience the warmth of a close-knit community where neighbors become friends and memories are made a short golf cart ride away. Whether you're seeking a family-friendly environment, investment opportunities, or simply a place to call home, Arcadia welcomes you with open arms. Exeter and Rubicon is today's hot spot for high end development with grandiose mansions being built in every direction.
18720 N 101st Street Unit 3017
Scottsdale, AZ 85255
$6,900,000
5
Beds
5.5
Baths
5,534
SqFt
Status
Active
MLS #
6635509
Property Type
Apartment
Price Type
--
The FINAL and much anticipated phase of the highly successful Icon project now available with construction well underway and estimated completion in 2025. This is not only an opportunity for extraordinary views and new construction , it also continues to be the best opportunity to be inside the gates of Silverleaf. ICON at Silverleaf offers an unlimited lifestyle with the lock-and-leave luxury of exceptional single-story flats amid the incomparable beauty of Arizona's McDowell Mountains. This rare and unique offering of spacious, open-concept residences affords the very best of all possible worlds, close to the cosmopolitan conveniences of affluent North Scottsdale, yet secreted within the pristine privacy of the Sonoran Desert behind the gates of the truly iconic upscale private community of Silverleaf. An exquisite 5 BEDROOM CONDOMINIUM WITH BREATHTAKING VIEWS. With a total of 5,534 square feet, this contemporary yet timeless residence offers a spacious open floor plan and luxurious living. The expansive exterior patio offers plenty of room for entertainment while the interiors are meticulously crafted with high-end finishes and upscale details. Four parking spaces are included with this home along with two ample storage units. Silverleaf, located in North Scottsdale, Arizona, is a prestigious guard gated community known for its luxurious estates, exclusive golf courses, private Club and stunning desert landscapes. The Tom Weiskopf-designed Silverleaf Golf Course is a highlight for golf enthusiasts. With a blend of Spanish and Mediterranean-inspired architecture, the community offers a high standard of living, including upscale amenities like spas, fine dining, and exclusive shopping. Residents enjoy a harmonious balance between modern luxury and the natural beauty of the desert environment, making Silverleaf a sought-after destination for those seeking an exceptional lifestyle in North Scottsdale.
1875 E Dragonshead Road
Rimrock, AZ 86335
$6,900,000
2
Beds
1
Bath
2,526
SqFt
Status
Active
MLS #
6756667
Property Type
Single Family Residence
Price Type
--
The spectacular Dyck Ranch is one of the largest privately held properties in central Arizona's stunning Verde Valley. It is 314 acres of endless opportunities, with over a mile and a half of Wet Beaver Creek running through it year round and 22 acres of irrigated farm land with grandfathered water rights. There are 3 wells (including an agricultural well for field irrigation) and a 2500 sf limestone, 2 bedroom residence originally built in 1959 and remodeled in 2010 to be a stunning studio space with 18 ft ceilings and floor-to-ceiling windows overlooking a well fed pond ringed with mature trees. The ranch sees extensive wildlife and backs up to Coconino NFS and the Montezuma Castle National Monument. It even hosts its own cliff dwelling archeological site and a suspension footbridge. A 100 miles from Phoenix, 50 miles from Flagstaff and 20 miles from Sedona, the old Dyck Ranch sits at a temperate 3500 ft in elevation. The varied topography offers mesas, gently sloping hillsides, and rocky outcrops overlooking an extensive riparian environment, pastures and irrigated fields. There are numerous potential building sites available for buyers looking to develop and acres and acres of space from the neighbors for buyers looking for privacy. Originally owned by renowned Western artist Paul Dyck for over 65 years, the property has supported cattle and horses, as well alfalfa and hay production over the years and now boasts a solar array with batteries designed to allow the ranch to function off-grid if desired. This quintessential Western ranch and secluded artist retreat is looking to you for the next stage in its existence, be it as private ranch, a retreat center, a sustainable family farm, an equestrian facility, a vineyard/winery, a luxury eco-resort, a wedding/event venue, or an entirely new subdivision of luxury homesthis land is ready for just about anything you can think of.
1385 S Loy Road
Cornville, AZ 86325
$6,900,000
10
Beds
10
Baths
39,489
SqFt
Status
Active
MLS #
6757510
Property Type
Single Family Residence
Price Type
--
Unparalleled opportunity to own over 40 acres outside of Sedona. These remarkable 8 parcels hold the potential to create your own ranch, business, and rental opportunities all in one place. Sitting Creekside and just 20 minutes outside of Sedona, this horse property includes residential homes, a hotel, an opera house, indoor skating rink, tennis court, golf course, barn/stable, general store, and original stage coach. Listing Broker has full parcel and property details. This is truly a one of a kind property.
7714 N Calle Caballeros --
Paradise Valley, AZ 85253
$6,900,000
6
Beds
7
Baths
8,369
SqFt
Status
Active
MLS #
6773494
Property Type
Single Family Residence
Price Type
--
This stunning estate in Paradise Valley greets you with dramatic landscaping and lush lawns, effortlessly merging timeless charm with modern sophistication. Spanning 8,369 sq ft, the main house and separate casita are designed with meticulous attention to detail, featuring a barrel-vaulted herringbone brick ceiling in the kitchen, hand-carved wood beams in the living room, beautiful arched hallways, and exquisite stone and wood flooring throughout. Transform movie nights with the lavish custom theater and game room, ideal for gatherings with family and friends on warm summer days. Retractable glass walls in both the family and living rooms open to a resort-style backyard, complete with two custom cabanas overlooking a glass-tiled pool and expansive lawn. The primary suite, nestled in its own private wing, offers a cozy sitting area, an ultra-luxurious bath, custom his-and-hers closets, an exercise room with a wet bar, and a secluded patio. Down the grand arched hallway, you'll find the formal dining room adjacent to a wine cellar, as well as an impressive office featuring coffered wood ceilings and its own private patio.
23216 N 95th Street
Scottsdale, AZ 85255
$6,900,000
5
Beds
5.5
Baths
6,517
SqFt
Status
Active
MLS #
6695412
Property Type
Single Family Residence
Price Type
--
Introducing a 6,100+ square foot modern masterpiece designed by Graffin Design Architects, nestled on nearly an acre of land boasting breathtaking mountain and city light views just north of DC Ranch. This home's allure begins with a paver driveway leading to a 3-car garage (with EV charger and dog wash station!), courtyard entry, and a grand pivoting front door. Inside the residence exudes sophistication and functionality, featuring a sleek split floor plan with 4 bedrooms and 4.5 baths on the main level, including a separate principal suite and an attached casita with its own living space. The great room, featuring a large drop down screen and projector, seamlessly flows into the kitchen and dining area, with glass walls that invite abundant natural light and panoramic views. Upstairs, a versatile space awaits, offering a sitting room/bar area, a 5th bedroom/exercise room with a full bath, and a separate view deck with a lounge area, perfect for entertaining. Throughout the home, premium finishes abound, including hardwood and tile floors, a full Wolf Sub Zero appliance package, custom cabinets, porcelain countertops, 8' solid doors, exposed masonry block, and chrome hardware fixtures all enhanced by LED lighting and controlled remotely via Control 4 smart home system. Enhancing the living experience is the seamless integration of indoor-outdoor spaces, where the backyard oasis beckons with a pebble-tec pool and spa, synthetic turf yard with custom xeriscape, and a full outdoor kitchen with built-in barbecue and pizza oven, multiple fireplaces and stunning city light and mountain views. There is also a large enclosed private dog park that could be converted into a play area or golf simulator or whatever dream project you envision! Additional features include a central vac system, owned solar panels, outdoor shower, multiple water features, auto covers for the pool and spa, and a built-in ionized water station in the fitness room. Truly there are too many extras to list here! Discover unparalleled luxury living in this meticulously crafted residence, where every detail reflects the epitome of high-end sophistication and style.
