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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1105 N Indian Paintbrush Circle Payson, AZ 85541

$1,299,000

4 Beds

4 Baths

3,472 SqFt

Status Active

MLS # 6689974

Property Type Single Family Residence

Price Type --

This amazing 4 bed, 4 bath multi-level home in Payson is now for sale! Enjoy the breathtaking golf course and panoramic mountain views from a recently remodeled and expanded deck. The home itself is nestled in the Community of Chaparral Pines and boasts a stunning façade, manicured landscape, and a 2 car garage w/paver driveway. Inside you will find a spacious living area w/elegant tile flooring, stylish light fixtures, abundant natural light, and neutral palette throughout. Hone your cooking skills in this gorgeous kitchen, comprised of wood cabinetry w/granite counters, SS appliances such as a wall oven & wine cooler, and an island complete w/a breakfast bar. You'll love the primary bedroom, featuring soft carpet, private deck access, walk-in closet, and a lavish ensuite! Don't forget about the cozy den, perfect for an office! Also including a HUGE deck w/a built-in BBQ where you can enjoy a summer cookout w/friends and loved ones, this home is a dream come true! Don't let this incredible opportunity slip by!

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4601 W Paradise Lane Glendale, AZ 85306

$1,299,000

8 Beds

8 Baths

4,573 SqFt

Status Active

MLS # 6674143

Property Type Single Family Residence

Price Type --

NO HOA!!! CUSTOM Tri Level Home in Sunburst Farms sits on just under an acre with a detached Guest House, Separate Home Office and temp controlled Workshop! Solar panels, optional flood irrigation and a 500 gallon propane tank keep utility expenses low and affordable. Pride of ownership is in the details. Main House features 4bed/3.5bth, a custom kitchen with 2 sinks, built in appliances that include a convection cooktop, double ovens, and trash compactor. The finished basement has a bedroom, full bathroom, 2 walk-in closets and den. You'll notice all the GORGEOUS built in cabinetry throughout the entire home. The backyard oasis is an entertainer's dream with a massive covered travertine patio that extends to a heated pool/ spa and built in full outdoor kitchen and fireplace. Follow the luscious green landscaping to a detached 2bed/2bath guest house complete with a full kitchen and huge laundry room. Exit the private courtyard and you will find your perfect home office with 2 separate office areas and a full bathroom. Workshop is a temp controlled (mini split) 50ft garage featuring a 14ft door, chain hoist, built-in work bench, shop sink, locked storage area and half bathroom. Space is also preplumbed for compressed air. There are many more details, too many to list. Bring your toys and your tools and come check it out for yourself!

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11815 W Lost Man Canyon Way Prescott, AZ 86305

$1,299,000

4 Beds

3 Baths

2,680 SqFt

Status Active

MLS # 6674739

Property Type Single Family Residence

Price Type --

Enjoy breathtaking, uninterrupted vistas of Williamson Valley from this exquisite ''Ranch Style'' residence. Boasting 4 bedrooms, 3 baths, and a spacious 2 car garage, this home is a testament to rustic elegance. Step inside to discover large hewn timber beams, natural stone accents, and a stunning tongue-and-groove vaulted ceiling in the Great Room, complemented by a wall of windows framing panoramic views. Throughout the home, you'll find rich wood floors, Alder doors, and a charming stone fireplace with a mantle. The generously sized kitchen features granite countertops and a convenient wet bar in the dining area. Outside, multiple covered patio areas beckon relaxation amid mature trees and lush vegetation. Experience the epitome of tranquil living.

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20622 W Colter Street Buckeye, AZ 85396

$1,299,000

3 Beds

3.5 Baths

3,282 SqFt

Status Active

MLS # 6752369

Property Type Single Family Residence

Price Type --

Breathtaking GOLF COURSE MOUNTAIN & CITY VIEWS from this David Weekley Serendipity home! With 3 bdrms, 2 dens, 3.5 baths, you & your guests will have plenty of room to spread out, as each bedroom has its own bathroom. The large owner's suite features stunning views, luxurious shower and soaking tub, as well as access to the laundry room. The gourmet kitchen includes extra cabinets, and huge center island. The ''Walk-Through Pantry is spectacular! There is also a ''Command Center'' (tech area). The beautiful backyard has artificial turf & extended covered patio Wait... there's more.. the 2.5-car garage has a mini-split & overhead storage. There's an over $100K amount of options, upgrades, and updates in this home!!! Also leased solar reduces utility bills. Includes 1-year Home Warranty The addition of the hobby room, which is 12x24 adds another 124 square feet to the floorplan.

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12158 N 138th Street Scottsdale, AZ 85259

$1,299,000

3 Beds

3 Baths

2,979 SqFt

Status Active

MLS # 6731048

Property Type Single Family Residence

Price Type --

This beautifully remodeled home within the guard gated community of Scottsdale Mountain, features 3 bedrooms, 3 bathrooms, a loft, an office and a host of modern upgrades, including engineered white oak hardwood throughout. The downstairs boasts high ceilings and beautifully remodeled kitchen, featuring new white oak and white cabinets, appliances and quartz countertops. Step into the family room with a dual sided fireplace with the living room on the opposite side. The backyard features a view fence over a beautiful wash, a newly resurfaced pebble tech pool and stunning mountain views at the base of the McDowell Mountains. The home boasts a large first floor master retreat and completely remodeled bathroom. Upstairs is a great place for the kids with an additional two bedrooms and a loft for games and entertainment. Lastly, the home received a new roof in 2022 and new Trane HVAC system in 2024. Don't miss this stunning remodel in the safe and secure guard gated community of Scottsdale Mountain adjacent to award winning schools!

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21616 N 37th Street Phoenix, AZ 85050

$1,299,000

6 Beds

4.5 Baths

4,302 SqFt

Status Active

MLS # 6748243

Property Type Single Family Residence

Price Type --

BIG REDUCTION TO SELL! $15,000 SELLER CREDIT FOR CARPETING & UPGRADES AVAILABLE! Own this 6 bed, 4.5 bath Amazon model in Fireside near the school! With a 4-car garage, heated pool, 4,302ft² & located on a premium view lot with no neighbors behind, this won't last long! The main floor includes your open concept great room, upgraded kitchen, formal dining room, den/bonus room, primary bedroom suite (which is epic!), powder bath, laundry, & a casita/mother-in-law suite with a private entrance & bathroom! Upstairs you'll find the additional 4 bedrooms (all with walk-in closets), a loft, tech space, & two more bathrooms! The back yard is filled with beautiful travertine, a heated (& cooled!) pool with smart equipment + controls, a pergola-covered outdoor kitchen + firepit , & view fencing without neighbors behind you! The front yard's desert landscape is maintained with an auto drip system, as is the courtyard! The home also features a TON of upgrades including but not limited to a new dishwasher (2024), AC (2022), solar system, RO water system, soft water system, new back turf (2022), misters on the patio, outdoor security system, new pendant lighting, in-ceiling surround sound speaker system, landscape lighting, and more! New Carpet installed (9/30) in the primary suite, too!

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4850 E Poinsettia Drive Scottsdale, AZ 85254

$1,299,000

4 Beds

3 Baths

2,902 SqFt

Status Active Under Contract

MLS # 6738636

Property Type Single Family Residence

Price Type --

Welcome to your dream home! This fully remodeled & expanded property is designed with modern comfort & luxury in mind. W/updates to the kitchen, Master suite, HVAC system, roof, windows, & the addition of spray foam insulation, it offers energy efficiency & a nearly new home. It also features an ADDED 2C garage, heated and cooled for your cars & toys. Recognized as the ''Best Home on the 85254 Tour,'' this stunning residence includes dual master suites, 3 spacious bathrooms, & an open-concept floor plan. The chef's kitchen is a true showpiece, perfectly situated to overlook a well landscaped backyard, complete with fruit trees, a gazebo, & maintenance-free synthetic grass. Pool Available too! Car enthusiasts will love the 4+garage, in the best neighborhood and A+scottsdale School distric Property upgrades: New 3-ton AC 2024 Roof 2020/2024 for addition New windows New Master Suite 19x19 New Master Bath 15x19 w/ soak tub, shower, toilet and bidet 2-Master Suites Foam insulation throughout 4+ Car garage cooled/heated Work room All new Electrical Wiring New Low voltage lighting Epoxy Garage floor New Pavered Driveway for 8 cars

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8431 E Via De Encanto -- Scottsdale, AZ 85258

Open House

$1,299,000

3 Beds

2 Baths

2,159 SqFt

Status Active

MLS # 6778485

Property Type Single Family Residence

Price Type --

This property is immaculate! Located in the desirable McCormick Ranch area, this 2,159 sq. ft. home offers spacious rooms and a thoughtful layout ideal for modern and open-concept living. The remodeled kitchen features quartz counters, white & navy shaker cabinets, an island & breakfast bar, Monogram propane gas stove, large great room with double sliding door, vaulted ceilings and a striking stone fireplace, wet bar & wine fridge. Outside, a large backyard awaits with a sparkling pebble sheen pool, covered patio, a newly installed travertine pool deck, Anderson windows/doors, and a paver courtyard in front, all on a huge 11,592 SF private lot. Beautifully landscaped yard. Conveniently located, minutes from shopping, parks, freeway access, and various dining options.

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7678 E Starla Drive Scottsdale, AZ 85255

Open House

New

$1,299,000

4 Beds

3 Baths

2,941 SqFt

Status Active

MLS # 6779375

Property Type Single Family Residence

Price Type --

Forever Home or Investors Dream. Beautiful single-level home in the gated community of La Vista in North Scottsdale. Perfectly positioned for easy access to dining, shopping, and the 101 freeway, you're just 15 minutes from Scottsdale Quarter and Kierland Commons. Walk into profit with this Vacation Rental Super Host with $25K+ in bookings through April 2025!! 2024 YTD Gross Earnings totaling nearly $100K+ Spacious home features 4 bedrooms, 3 baths + flex space, arranged in a functional split floorplan. Boasting 12' Foot ceilings and dripping in natural light. Large bright, white kitchen with island. The backyard features a heated saltwater pool, small gated dog run & custom outdoor BBQ island with green egg, perfect for entertaining.

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8507 S 9th Drive Unit 16 Phoenix, AZ 85041

$1,298,000

4 Beds

3.5 Baths

3,063 SqFt

Status Active

MLS # 6704445

Property Type Single Family Residence

Price Type --

Introducing Heard Farm at South Mountain, a brand new community of 24 modern farmhouses with sophisticated architecture designed for healthy, sustainable living! Nestled in South Mountain with quick access to downtown Phoenix, Heard Farm seamlessly blends indoor and outdoor living with fresh floor plans designed for the way you want to live.

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6008 E Lone Cactus Drive Phoenix, AZ 85054

$1,298,000

5 Beds

4 Baths

3,487 SqFt

Status Active

MLS # 6751191

Property Type Single Family Residence

Price Type --

Fall in love with this exquisite home in the desirable Talinn Community! This incredible residence showcases captivating stone accents, a convenient 4-car tandem garage, and a welcoming front porch that invites you to explore further. Step inside to be greeted by a grand hallway that leads to an open-concept living area. This space is beautifully enhanced with soothing paint tones, tall ceilings, wood-plank tile flooring, elegant recessed lighting t/out, and multi-sliders to the back patio. The stunning kitchen is fully equipped with a gas cooktop, a wall oven, quartz counters, a stylish tile backsplash, and two islands, one with a breakfast bar. A walk-in pantry and white shaker cabinetry with crown molding for ample storage space. Versatile den for a home office or a creative studio! Discover a sizable loft upstairs, perfect as a cozy family room or an additional entertainment area. Escape to the romantic main suite, where natural light pours in, creating a serene atmosphere. The ensuite is a luxurious retreat featuring dual vanities, a soaking tub, a glass-enclosed shower, and a spacious walk-in closet. The secondary bedrooms are thoughtfully designed with a Jack & Jill bathroom, providing privacy and practicality. The large backyard is your oasis, complete with a covered patio, pavers, low-maintenance artificial turf, and a children's playgroundexcellent for hosting fun-filled gatherings. This home is a must-seedon't let this opportunity slip away!

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7127 E Rancho Vista Drive Unit 2001 Scottsdale, AZ 85251

$1,298,000

3 Beds

2 Baths

1,781 SqFt

Status Active

MLS # 6745250

Property Type Apartment

Price Type --

Exceptional turnkey FULLY FURNISHED 3 bedroom/2 bath second floor corner unit offers spacious, open floorplan. Kitchen and living room overlook wrap around terrace with bbq and outdoor seating. Dual sliding glass doors ideal for luxurious resort style living and entertaining both inside and out. Master suite offers spa-like bathroom complete with bidet and walk-in closet. Two secondary bedrooms and two assigned parking spaces with electric charging stations in secure garage. Prime location walking distance to restaurants and Scottsdale Fashion Square. Endless community amenities including indoor and outdoor pools and spas, putting green, racquetball and basketball courts, fitness center and so much more. You will feel like you are on a never ending vacation! Welcome Home!!

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