Investing in a Vacation Property? Learn What You’ll Need to Have to Get A Mortgage Approved

Investing in a Vacation Property? Learn What You'll Need to Have to Get A Mortgage ApprovedWith 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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8430 E Fairmount Avenue Scottsdale, AZ 85251

$1,449,900
4 Beds
3 Baths
2,451 SqFt
Status Active
MLS # 6760913
Property Type Single Family Residence
Price Type --
Welcome to a beautifully remodeled home with modern upgrades and an open-concept layout. The home features added square feet of permitted living space, enhancing its functionality. The Master Suite offers a spacious closet, dual vanities, a soaking tub, and a separate shower. Throughout, you'll find sleek 24x48 tile flooring, while the gourmet kitchen boasts a waterfall island, quartz countertops, new cabinetry, and appliances. The front door is equipped with smart glass that shifts from clear to frosted on demand, providing instant privacy and added security. Outside, enjoy a resurfaced Pebble Tec pool, new pump, pergola, built-in BBQ, and paver patio—perfect for entertaining. With upgraded electrical, new windows, and fresh paint throughout, this move-in-ready gem is waiting for you!

5050 E Charter Oak Road Scottsdale, AZ 85254

$1,449,000
3 Beds
2 Baths
2,234 SqFt
Status Active
MLS # 6775990
Property Type Single Family Residence
Price Type --
Welcome Home to your custom 3 bedroom, 2 bathroom dream home in a highly sought-after area of Scottsdale with no HOA! This stunning single level property has been fully re-imagined by the design talents of 555 Angel Designs and is now in immaculate, like-new condition. As you enter the home, you'll be greeted by a spacious and open floor plan. The living area features custom wood work and new French doors that flood the space with natural light, creating a warm and inviting atmosphere. The kitchen is a chef's dream with brand new top of the line appliances, honed quartzite countertops, a large island and custom cabinetry that provide ample space for cooking and entertaining. The adjacent dining area and bar are perfect for hosting dinner parties or casual meals with family and friends. The luxuriously large primary bedroom is a true retreat, boasting a spacious bedroom with plenty of natural light, French doors that lead to patio, a stunning grand ensuite bathroom with a walk-in shower, freestanding tub, seperate vanities and a large walk-in closet. Two additional well sized bedrooms provide plenty of space for family or guests. A large private oasis backyard, with a stunning new private pool, covered patio and new landscaping provide the perfect space for outdoor living and entertaining. This home is just minutes away from shopping, dining, and entertainment, as well as top-rated golf courses, schools and parks. Don't miss this opportunity to own a completely updated and move-in ready home in one of the most desirable areas of the city!

603 N Grapevine Drive Payson, AZ 85541

$1,449,000
4 Beds
4 Baths
4,312 SqFt
Status Active
MLS # 6666392
Property Type Single Family Residence
Price Type --
Amazing vista views from all 3 levels of this stately home built by one of Chaparral Pines Guild Builders. A beautiful flagstone entry & foyer welcome you into the stunning great room that features a stately stone fireplace, hardwood flooring, surround sound & is further complemented by an 1,100 sq ft., wrap around deck offering magnificent mountain views! The innumerable upgrades include slate floors in the kitchen & baths, art studio/office, reading loft, master bedroom with its own fireplace & zoned heating & cooling throughout. Truly one of Chaparral Pines' premier luxury, mountain homes.

6105 E Victoria Drive Cave Creek, AZ 85331

$1,449,000
4 Beds
3 Baths
3,614 SqFt
Status Active
MLS # 6670789
Property Type Single Family Residence
Price Type --
Elevated atop Black Mountain, this exceptional property offers breathtaking views encompassing sunsets, mountains, and city lights. Savor these views from multiple balconies or your living room with 24 ft. beamed vaulted ceilings and a cozy electric fireplace. The meticulously remodeled home boasts exquisite details. The kitchen shines with new cabinets, Quartz counters, top-tier appliances, a walk-in pantry, and dual islands. The owner's suite offers spectacular views, a spacious walk-in closet, and a luxurious bath with a soaking tub and walk-in shower. An Arizona room, featuring 4 sliding glass doors, invites you to enjoy sunset dinners before stepping onto the patio with a built-in BBQ. Every corner of this stunning Cave Creek home has been thoughtfully upgraded, making it a true gem.

27221 N 71st Place Scottsdale, AZ 85266

$1,449,000
4 Beds
3 Baths
4,440 SqFt
Status Active
MLS # 6748322
Property Type Single Family Residence
Price Type --
Discover a rare opportunity to own and update a classic North Scottsdale compound with unparalleled potential and value. Nestled on a peaceful cul-de-sac, this expansive property spans over 1.25 acres and boasts no HOA restrictions, making it a truly unique find. Car enthusiasts will appreciate more than 2,400 sq ft of garage space, accommodating up to 7 cars or 5 cars plus an RV. The main residence offers approximately 3,404 sq ft of living space, complemented by a 530 sq ft full casita and a 506 sq ft bonus room—ideal for a home office, gym, art studio, or additional guest accommodations. In all, this property provides around 4,400 sq ft of interior space, with a generous 634 sq ft covered patio overlooking a refreshing pool. Although the home is ready for your personal touches and modern updates, it features solid bones and is appropriately priced, offering a fantastic opportunity to build significant equity or refresh it for a profitable resale. With dual entry points and ample parking for boats, cars, toys, RVs or equipment, this property stands out as a truly one-of-a-kind offering in the current market. Don't miss the chance to make this versatile estate your own!

8565 E Vista Del Lago -- Scottsdale, AZ 85255

$1,449,000
3 Beds
3 Baths
2,379 SqFt
Status Active
MLS # 6766776
Property Type Townhouse
Price Type --
Located in the highly desirable gated community of The Pinnacle North Scottsdale, this luxury property has so much to offer! Featuring abundant natural light, mountain views, soaring ceilings, a fantastic floor plan with spacious bedrooms in the main home and a 3rd inside the casita with separate entrance, new roof and new solar! The minute you enter the community you will feel the tranquility of the unique Rex Short design development. This properties expansive private courtyard showcases wall to wall glass sliding doors that can extend outdoor living and allow an abundance of natural light to flow throughout the home. Situated on a large lot with close proximity to amazing restaurants, shopping, biking / hiking trails, the Pinnacle Peak Country Club and nearby local retail that are within walking distance makes it priceless!

17857 E Fort Verde Road Rio Verde, AZ 85263

$1,448,000
3 Beds
3.5 Baths
2,681 SqFt
Status Active
MLS # 6766829
Property Type Single Family Residence
Price Type --
WATCH THE SUNRISE OVER FOUR PEAKS EACH MORNING! Come see this jaw dropping Luxurious home with stunning Views of Four Peaks in the heart of prestigious Trilogy at Verde River. This highly sought-after Latigo plan is loaded with incredible features and upgrades. This home boasts a spacious Primary Suite, Guest Bedroom and an additional GUEST CASITA, ensuring privacy and comfort for all. Additionally, there is a dedicated Office space perfect for those who work from home or desire a tranquil retreat. The kitchen is a culinary enthusiast's dream, featuring all stainless-steel appliances and exquisite details such as granite countertops and beautifully upgraded cabinets. The Smart Space/Hobby Room includes a desk area and granite countertops, catering to both convenience and style. A GUEST Casita provides an additional private space for visitors or can be used as a home office or exercise room. Practicality meets luxury with oversized garage offering ample storage. The open floor plan seamlessly blends indoor and outdoor living, creating a harmonious space for relaxation and entertaining alike. The outdoor spaces are equally enchanting. The covered patio with Exterior Fireplace is an idyllic retreat, allowing you to enjoy the outdoors all year round. It is an ideal spot to relax, unwind, and soak up the natural beauty that surrounds you. Some of the notable upgrades and features include: Extended Patio Iron Entry Door with Rain Glass Custom Designer Lighting Custom Solar Shades throughout the house and Casita GE Monogram Gas Gourmet Appliance package Upgraded cabinets with custom cabinet hardware Decorative backsplash Multi Slide Door at Great Room Custom California Closets in His and Hers Closet Floor outlet at Great Room Custom upgraded flooring Action Pack Alarm System 15 SEER AC Unit Two-tone paint package Heavy glass shower enclosure at primary bath Full shower at secondary bath Tankless Water Heater 250 gal propane tank Garage service Door Custom Landscaping with Linear Fireplace and custom built-in BBQ with custom Bar And a Lot More... Don't miss this opportunity to own a truly remarkable property in the prestigious Trilogy at Verde River. Trilogy at Verde River offers upscale Resort living at its finest and the very best of all possible worlds, close to the conveniences of affluent North Scottsdale, yet secreted within the pristine privacy of the Sonoran Desert. The amenities are World Class with Tom Lehman inspired eighteen-hole Golf course, tennis courts, pickle ball courts, and bocce ball, heated lap pool and Resort style swimming pool, hot tub, Afterburn fitness center, Helen's demonstration Kitchen for cooking classes and a 7.5 acre dog park. The community center has casual poolside dining at Eddy's Diner and gourmet dining at award-winning Needle Rock Kitchen and Tap, Alvea Spa with full-service Salon and Spa amenities, Art Loft and events center. Trilogy at Verde River is adjacent to the Tonto National Forest and is situated in the middle of miles and miles of hiking and biking trails. Whether you're seeking a second, winter home, or will live here year-round, Trilogy at Verde River is an ideal distance from the hustle and bustle of North Scottsdale. Attitudes here are different; there's a sense of community. You'll love the Resort living! What memories will you make?

8006 S 38th Place Phoenix, AZ 85042

$1,448,000
5 Beds
3.5 Baths
3,344 SqFt
Status Active
MLS # 6745776
Property Type Single Family Residence
Price Type --
Amazing opportunity to live in the gated Highline Groves community nestled within the South Mountain Preserve. Enjoy a split floor plan with an additional den/office off the garage and a sperate guest quarters off the carport which features a kitchenette and full bathroom. Easy access to hiking, golf and sky harbor airport.

100 W Northern Avenue Unit 4 Phoenix, AZ 85021

$1,445,500
3 Beds
2.5 Baths
3,063 SqFt
Status Active
MLS # 6722855
Property Type Single Family Residence
Price Type --
Welcome to 100 Northern, a unique gated new community of 17 modern homes in the heart of North Central. This model home is ready for immediate move in and features mountain views, soaring ceilings, high end finishes, a large open kitchen with an oversized island, Wolf appliances, and a walk in pantry offering you the best of North Central. With two stories, the home allows for everything to live on the first level with a primary suite, a den, laundry and living all downstairs. While upstairs features additional bedrooms and living space. Then there are the private grounds featuring a stunning community pool and large park. All work together to make this a true must see home.

7180 E Kierland Boulevard Unit 512 Scottsdale, AZ 85254

$1,445,000
2 Beds
2 Baths
1,461 SqFt
Status Active
MLS # 6725470
Property Type Apartment
Price Type --
Gorgeous luxury condo with spectacular views. Enjoy resort style living with every amenity at your doorstep! This spacious 2 bed/2 bath offers a convenient split floorplan, with expansive windows & walk-in closets in each suite. Center of the home is bright & inviting with great room featuring floor to ceiling windows overlooking city lights & the mountains beyond. Your gourmet kitchen offers prep space galore w/large island including breakfast bar seating, and plenty of lux white cabinets. Complimentary granite counters, stainless steel hardware, and Bosch appliances complete the beautiful kitchen. Both baths feature stone counters & large tiled showers + big soaking tub in primary. Enjoy cool evenings on your private patio, or head upstairs to the rooftop pool, spa, and seating. Enjoy panoramic views from the rooftop pool and patios along with running track, BBQ areas, TVs, spa, sauna, plunge pool, steam room, & entertaining areas large and small. On the main level, enjoy all the luxurious amenities you could ask for including fitness center, massage and spa, locker rooms, indoor sports courts including pickleball, basketball, and racket ball, plus party room, coffee bar, gaming room, ping pong and pool table, virtual golf, media area, numerous indoor and outdoor entertaining spaces, and even a shaded dog park with bathing and water stations. Supremely walkable location, right across the street from Kierland Commons for shopping, dining and entertainment. This unit includes 2 parking spaces conveniently located just across from the elevator, as well as a separate garage storage unit.

2805 W Princeville Court Anthem, AZ 85086

$1,445,000
4 Beds
3.5 Baths
3,476 SqFt
Status Active
MLS # 6766141
Property Type Single Family Residence
Price Type --
WORLD CLASS VIEWS! TOP OF THE WORLD IN ANTHEM COUNTRY CLUB ON almost an ACRE and a half CUSTOM LOT (There are 9 of these custom lots and these homes are rarely for sale.) OVERLOOKS THE 18TH hole WITH 360 DEGREE MT. VIEWS and Golf Course Views. The lot is WOW and the views are even more WOW! 2 updated a/c's, Updated roof, Custom WINE CELLAR with iron door, granite counters, travertine floors, sculpture carpet, lots of water fun in the crystal clear blue pool and spa with grotto and swim up bar with seating in the pool and water features, fire pit, extended patio space and large raised view area, views all around! Stainless professional built-in appliances. Each bedroom has a private bathroom. PRIVATE, SERENE AND FABULOUS! ONE OF A KIND HOME with a real meandering driveway! (This is a pre 2013 Radisson model with the sunken wine cellar option, very cool!) FINALLY...a true opportunity to own a WOW VIEW property in Anthem Country Club for the most discerning Buyer! This home and its VIEWS will blow your socks off! Country Club Lifestyle with Resort Style Amenities...Anthem Country Club is managed by Club Corp which offers many great benefits to members that reciprocate around the world! Two 18 hole golf courses, Persimmons and Ironwood, designed by Greg Nash. 2 Pro shops, 2 sets of men's and women's lounges / locker rooms, 2 member restaurants, 2 gyms, 2 pools, 2 spas, several tennis courts, Gorgeous Ball Room for ongoing Member events and private events venues available as well, 2 Impressive guard gated entrances, all surrounded by breathtaking mountain and golf course views...you will love being a member of the Anthem Golf & Country Club!

42222 N Olympic Fields Court Anthem, AZ 85086

$1,445,000
4 Beds
4.5 Baths
4,100 SqFt
Status Active
MLS # 6770619
Property Type Single Family Residence
Price Type --
VIEWs VIEWs VIEWs! An executive home located on one of the most iconic and coveted streets in Anthem Country Club surrounded by Million Dollar Views. Updated HVACs. Updated windows. Negative edge pool. All the finest interior upgrades! FINALLY...an opportunity in Anthem Country Club for the most discerning Buyer! This home will blow your socks off! Country Club Lifestyle with Resort Style Amenities...Anthem Country Club is managed by Club Corp which offers many great benefits to members that reciprocate around the world! Two 18 hole golf courses, Persimmons and Ironwood, designed by Greg Nash. 2 Pro shops, 2 sets of men's and women's lounges / locker rooms, 2 member restaurants, 2 gyms, 2 pools, 2 spas, several tennis courts, Gorgeous Ball Room for ongoing Member events and private events venues available as well, 2 Impressive guard gated entrances, all surrounded by breathtaking mountain and golf course views...you will love being a member of the Anthem Golf & Country Club!

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