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

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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9983 E Mirabel Club Drive Scottsdale, AZ 85262

$5,995,000

5 Beds

5.5 Baths

5,616 SqFt

Status Active

MLS # 6754350

Property Type Single Family Residence

Price Type --

An extraordinary contemporary home, newly completed, with a 5-car garage and 2 room detached guest casita, situated on a large elevated 1.8-acre lot. Located inside the prestigious Mirabel Club community, this home has a South facing orientation, w/ views of Pinnacle Peak, sunsets and city lights. This home has an outstanding mixture of textures & finishes throughout, including exposed textured block, beautiful natural stone surfaces, and wood flooring. The entry is highlighted with a large steel trellis connecting the main house to the guest casita, making a stunning entrance to the home. The open floor plan, combined w/ retractable sliding doors/bar window to a backyard oasis, creates a seamless indoor/outdoor AZ lifestyle, at its finest. Floor plan available under the documents tab. Floor plan is available under the documents tab.

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10902 E Winter Sun Drive Scottsdale, AZ 85262

$5,995,000

4 Beds

6 Baths

7,649 SqFt

Status Active

MLS # 6768884

Property Type Single Family Residence

Price Type --

THERE IS A FULL GOLF MEMBERSHIP AVAILABLE subject to the club bylaws and membership approval. Amazing Estate home with two room detached casita in the guard gated Mirabel Club Community built on two lots with a gated driveway entering into a large motor court with 6 plus garage bays. The back of the home faces straight southwest with impressive city light, mountain and sunset views. In addition to the 3 ensuite bedrooms in the main house plus two half baths there is an expansive two room detached guest house, a large exercise studio or second office, theatre room with a full sit-down bar, plus a library/office with gorgeous built-in cabinetry. The furnishings and golf cart are available under separate bill of sale. Truly a one-of-a-kind property with room for all the toys and family.

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8877 E Charolais Drive Scottsdale, AZ 85262

$5,995,000

3 Beds

4 Baths

6,028 SqFt

Status Active

MLS # 6769366

Property Type Single Family Residence

Price Type --

Stunning contemporary elevated hillside estate home with outstanding Valley and mountain surround views from every room, on 18 acres in gated community of Carefree Ranch Homesteads. Private electronic gate opens to a long level driveway with a 62' turnaround and extra parking for easy maneuvering into a double-sized RV garage. Wet bar with full size refrigerator. two dishwashers, disposal and large wine chiller. Theater and sound system with state of thee art electronics and ten foot screen. Dining room has a built in lazy susan table for 8, with warming drawer and buffet. Kitchen includes two dishwashers and a warming drawer. Spacious complete guest house with great views, living room and full-size kitchen appliances including washer/dryer. Motor shades, inside and out, Lutron lighting. Floor to ceiling windows provide xpansive views with North, South and East exposures. There are a few steps throughout this virtually one level home. Up to 4 horses allowed on the property Additional features: 3 Bedrooms, 3 Half Baths Manned Gate at Community Entry Camera at front gate Lightning Protection System 2 BBQ's 4 HVAC Zone (and multiple thermostats) Internet by Air Fiber Currently Dish Network Propane hot water heaters Water purification system 1000 gallon H2O tank Pest tubes built in RV dump station Full workshop area with sink Up to 9 cars without stacking Stackable RV garage Room for 2 RV's, boats or all terrain vehicles

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9821 E Sundance Trail Scottsdale, AZ 85262

$5,995,000

5 Beds

5.5 Baths

7,559 SqFt

Status Active

MLS # 6752031

Property Type Single Family Residence

Price Type --

Immerse yourself in the epitome of luxury living with this exquisite contemporary residence, offering timeless modern design and unparalleled quality in the heart of Arizona's Desert Mountain community. Designed by Peter Magee and influenced by renowned architects Ricardo Legorreta and Luis Barragan, this organic masterpiece seamlessly blends indoor and outdoor living, boasting sweeping views over the 7th hole of the Renegade Golf Course. From the moment you enter, experience a harmonious fusion of luxury, innovation, and nature, with an inviting outdoor oasis surrounded by lush desert landscapes. FURNITURE AVAILABLE VIA SEPARATE BILL OF SALE. Outdoor amenities include various seating areas, an outdoor kitchen, spa, and a stunning infinity-edge lap pool framed by linear fire feature to the dining room with breathtaking views, while the primary suite offers a tranquil sanctuary connected to an open-air reflecting pool. The primary bathroom exudes spa-like luxury with floating vanities, solid limestone counters, and a deep soaking tub. The chef's kitchen is appointed with the finest appliances, including double Sub-Zero refrigerators/freezers, Wine Refrigerators, Wolf range, and Miele coffee makers, making it a dream for entertainers and culinary enthusiasts alike. Additional features include a casita with three ensuite bedrooms, an expanded 3-car garage, and updated systems throughout, ensuring modern comfort and security. Desert Mountain offers a relaxed, natural setting with exclusive amenities, including guard gated security, private hiking trails, and separate private membership club with golf courses, restaurants, tennis, and more. Welcome to the pinnacle of luxury desert living.

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8843 N 63rd Place Paradise Valley, AZ 85253

$5,995,000

5 Beds

5.5 Baths

5,930 SqFt

Status Active

MLS # 6684784

Property Type Single Family Residence

Price Type --

The warmth of a Santa Barbara with modern updates ! A front patio with fireplace and comfy seating opens to the dining room with a custom wine wall . Chefs kitchen with island and seating is a part of the family room featuring sit down bar , humador, wine fridge and ice maker. Split primary suite has lounge area and private patio plus killer closets and bathroom . Attached casita/ gameroom / or bedroom 5? Bedroom 4 can be an office with builtins and full bath . Two additional bedrooms have private ensuite and walk in closets. Resort vibes in back include a huge bbq ramada, tv/bar ramada , kids play area, pool and spa and putting green. This is the season for the PARTY BACKYARD .Also a Lift in the garage ! Well maintained and upgraded tastefully .

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6111 N Camelback Manor Drive Paradise Valley, AZ 85253

$5,995,000

4 Beds

4.5 Baths

5,900 SqFt

Status Active

MLS # 6719922

Property Type Single Family Residence

Price Type --

HUGE CAMELBACK VIEWS!! This very special 1.25 acre gated estate is nestled on one of Paradise Valley's most coveted streets where homes rarely come to market. A breathtaking desert gem, this home was completely rebuilt in 2008 and recently remodeled and redesigned by its designer owner. It features soaring ceilings, a considerable great room open to the chef's kitchen with high-end appliances, ample storage & counter space and large glass sliders leading to a lap pool, outdoor fireplace, gracious seating areas and a private lush desert oasis, 4 beautifully appointed bedroom suites + office w/ sep entry + includes an attached 900 sq ft casita with kitchenette. Views abound from every window! A rare exquisite jewel in the heart of PV at the base of iconic Camelback Mountain.

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1392 Moqui Drive Happy Jack, AZ 86024

$5,950,000

8 Beds

10 Baths

8,144 SqFt

Status Active

MLS # 6768570

Property Type Single Family Residence

Price Type --

Welcome to Northern Arizona's premier Log Ranch. Over 8,000 sqft on 120 acres offering privacy and breathtaking panoramic views. Arrive under an illuminated porte-cochère, and you're greeted by expansive terrace views and a profound sense of peace—an experience reserved for only a fortunate few. Featuring 150-year-old hardwoods sourced from an old whiskey factory and stunning beamwork reclaimed from a shipwreck. Relax in an observatory room with a retractable roof, perfect for stargazing. The kitchen has granite countertops, a commercial-grade range, and both casual and formal dining areas. Outdoor amenities include fire pits, a swim spa, and a flagstone patio for serene relaxation. With a private well, solar system, and generator, this retreat is self-sufficient and luxurious.

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4601 N 49th Place Phoenix, AZ 85018

$5,950,000

5 Beds

5.5 Baths

5,764 SqFt

Status Active

MLS # 6766330

Property Type Single Family Residence

Price Type --

In the heart of Arcadia proper, the most exclusive and desirable neighborhood in Phoenix, this modern farmhouse built in 2017 is the perfect family home. Featuring 5764 sqft on .61 acres (all one level, no interior steps), the masterfully designed floorpan offers 5 bedrooms, 5.5 bathrooms, formal & informal entertaining areas, an office, & a playroom/flex room (playroom can easily be converted to a 6th bedroom). The enchantment begins at the curb where a lovely brick walkway leads to front courtyards including a picture-perfect outdoor living room with a very special exterior fireplace. Upon entering, take in the warmth of the textures from hardwoods to brick accents, hand-cut beams and tasteful wall paneling. The great room is the heart of the home with abundant space for entertaining, dining & lounging. The chef's kitchen features designer finishes, requisite appliances (Sub Zero, Wolf), and a bar with gravitas. The lush backyard offers views of Camelback Mountain, a saltwater pool, spa, outdoor kitchen, plus plenty of grassy areas for play. The primary suite with a private den is a romantic escape at the end of the day. Other pertinent details include: Control 4 home automation and speakers inside & out. Owned 18.72 kW solar added in 2022 (near net zero) with integrated battery system. 3-car garage with huge workshop area and Tesla charger. Perfectly located equidistant (3 miles) to Old Town Scottsdale and also the Biltmore, Arcadia offers suburban charm with urban convenience. There is a unique sense of community here where neighbors strolling and biking is the norm. Walk to Hopi Elementary School and only 1.7 miles to Phoenix Country Day School. 6.2 miles to Sky Harbor Airport and 11.6 miles to Scottsdale Airport.

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6412 E Doubletree Ranch Road Paradise Valley, AZ 85253

$5,950,000

9 Beds

11 Baths

12,319 SqFt

Status Active

MLS # 6668086

Property Type Single Family Residence

Price Type --

Welcome to Casa Linda, a 1.74 acre oasis in Paradise Valley! This gated estate exudes a resort lifestyle with 3 pools, spa, sauna, sport court, and green landscape (on a drip system). Ideal for a car enthusiast, the property has a 4-car attached garage and a detached 6-car garage with RV drive-thru. An entertainer's dream, enjoy a chef's kitchen with Lacanche range, wine room, theater, game room, putting green and more. The main home features a split master wing, 3 add'l ensuite bedrms and separate office. The custom home boasts hand-carved doors, mosaics, ceiling murals and stone. A detached 5 bd/5ba guest house is great for long term guests or extra purpose rooms (exercise rm, second home office). Enjoy this retreat while being located minutes from Scottsdale's best dining and shopping!

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28145 N 91st Street Scottsdale, AZ 85262

Open House

$5,950,000

6 Beds

7.5 Baths

9,607 SqFt

Status Active

MLS # 6653911

Property Type Single Family Residence

Price Type --

This privately gated 9,607sf home presents an exceptional living experience. Its timeless interior features modern finishes, lux textures & expansive spaces, harmonized by the 7,000sf of French oak wide plank wood floors. The kitchen is equipped with state-of-the-art appliances, a spacious island for your culinary endeavors, and a stylish enclosed glass-walled 200+ bottle wine cellar. The main house has a 4-car garage, four ensuite bedrooms, two dens, a game room and a media room that seamlessly embraces your Arizona outdoor living. The guesthouse offers a private retreat and the stand-alone building with a studio apartment includes an air conditioned 2-car garage and a 4-car garage, perfect for the collector. Located in Merit Crossing on 3.8 acres with views of Pinnacle Peak Mountain. Architectural renderings for a future toy barn for the detached garage and studio are available on-site. Those yearning for a seamless transition into luxury living will appreciate the thoughtfully curated list of furnishings available on a separate Bill of Sale, ensuring a memorable turnkey experience. Upgrades: Concrete Tile Roof (2020) Painted- Exterior & Interior (2020) Two tankless water heaters (2020) HVAC (total-9) o

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6644 E Exeter Boulevard Scottsdale, AZ 85251

$5,945,000

6 Beds

6.5 Baths

12,128 SqFt

Status Active

MLS # 6767951

Property Type Single Family Residence

Price Type --

Experience an unparalleled opportunity in this magnificent Arcadia estate situated just half a mile from Old Town Scottsdale. Behind the gates on Exeter Blvd, a tree-lined drive welcomes you to over 12,000 sq ft of meticulously imagined living space. Indulge in the convenience of dual primary suites, easily accessible by elevator. A private office, large media room, and inviting family room cater to every need in this beautiful home, which is perfect for entertaining. Host unforgettable gatherings in the formal dining room or enjoy casual meals in the more intimate dining space. The chef's kitchen, complete with a butler's pantry, back kitchen, and serving bar, is a culinary haven. A separate guest suite ensures your visitors enjoy the utmost comfort and privacy.

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6723 E Lincoln Drive Paradise Valley, AZ 85253

$5,900,000

5 Beds

4.5 Baths

5,679 SqFt

Status Active

MLS # 6769813

Property Type Single Family Residence

Price Type --

Seller financing is available with flexible terms, and all offers are encouraged. Welcome to an extraordinary haven of elegance and luxury—a stunning brick mansion nestled in the prestigious heart of Paradise Valley. This residence offers impeccable sound construction and a serene atmosphere, making it a rare and exceptional find. The property features a resort-style backyard that provides a private retreat. Upon entering through the custom stained glass door, adorned with a laser-cut medallion, you'll be captivated by the breathtaking interior. The home boasts 24-inch travertine stone floors with intricate custom inlays and beautiful knotty pine ceilings, combining to create an ambiance of timeless sophistication. Conveniently located within walking distance of the new Ritz Carlton.

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