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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8411 E Windrunner Drive
Scottsdale, AZ 85255
$1,285,000
3
Beds
3
Baths
2,552
SqFt
Status
Active
MLS #
6773652
Property Type
Single Family Residence
Price Type
--
Welcome to this gorgeous Monterey home in Grayhawk's Talon Retreat! This home has been completely remodeled with almost $300,000 in Upgrades and Improvements in the last 4 years, including resurfaced roof and TWO completely replaced HVAC systems in 2023 and 2024! Checkout the Upgrades list in the Documents tab for the full list. The Retreat is a 24-hour guard gated neighborhood that is the epitome of luxury living in one of Scottsdale's premier Golf Communities. This home is absolutely turnkey, and it's perfect as a primary residence or as a winter retreat. The low maintenance backyard provides unparalleled privacy and peacefulness. When you enter this home, you are immediately greeted with lovely French oak wide plank flooring which runs through the main home and bedrooms. This large open room concept floor plan and 12 ft ceilings, maximizes the 2500 square feet, and the wall of glass and natural light, brings the outdoors inside! The kitchen has been completely remodeled with a large entertainer kitchen island, quartz countertops, Wolf and Sub-Zero appliances and a fabulous bay window breakfast nook. Did I mention how much natural light is in this home? You will be blown away by the outdoor / indoor living in this one of a kind property. The primary suite has been remodeled as well with a huge double vanity, top of the line fixtures, tile flooring, giant vanity mirror, and a floor to ceiling tile and glass shower. Open the barn door to find a large walk-in closet that has tons of organized space, and there are additional linen cabinets to meet all of your storage needs. The Primary bedroom has a slider door which has access to the backyard retreat. The front bedroom is another Primary bedroom with its own en-suite bathroom and walk- in closet. There is a large office or den space with fantastic built-in shelves and desk. This space could easily be enclosed to make a formal bedroom, because there is a third full bath right around the corner. The oversized laundry room has tons of cabinets, Quartz countertops, full size front load LG washer and dryer and a new mud sink and cabinet, and leads out to the two car garage with custom cabinets, a water filtration system, and a newer oversized water heater with recirculation pump. This property is truly one of a kind and has been lovingly cared for over the last 4 years.
40 E Apache Road
Munds Park, AZ 86017
$1,285,000
6
Beds
4
Baths
4,556
SqFt
Status
Active Under Contract
MLS #
6762176
Property Type
Single Family Residence
Price Type
--
This custom built luxury home is not to be missed. With over 4500 square feet of living area, six bedrooms, four baths and on nearly a one-acre flat usable lot, this chalet is loaded with upgrades and charm. The open great room has walls of windows and a stone-faced floor to ceiling wood burning fireplace. The kitchen has stainless appliances, granite countertops, breakfast bar and a walk-in pantry. Separate dining area. Main floor en-suite primary with a shower and a jetted soaking tub. Huge open loft area that overlooks the great room. As a special perk, there's a separate apartment with a private entrance that has a large bedroom, full bath, great room and kitchenette. Two car garage, an RV garage and lots of other parking options. Sold mostly furnished and at under appraised value.
8876 S Santa Elizabeth Drive
Goodyear, AZ 85338
$1,285,000
5
Beds
4
Baths
5,070
SqFt
Status
Active
MLS #
6753744
Property Type
Single Family Residence
Price Type
--
Welcome home to your very own piece of paradise nestled in the scenic Estrella Mountain foothills. This eclectic 5070 sq ft. custom home sits on 1.25 acres, and features a fully owned 25.6kw solar panel system. Just beyond the front door of this gorgeous home lies the courtyard, complete with a barbecue area and swimming pool. A winding concrete pathway leads you through your personal oasis to access both the 2 bed 1 bath casita and the additional 1 bed 1 bath casita- perfect for multigenerational living or generating additional income. Past the courtyard is the fully-featured primary residence, which includes a private office, 2nd bedroom, formal dining room, as well as a second-story deck to watch the Arizona sun set over the beautiful Estrella Mountains.... In the kitchen, the sleek granite countertops, luxury stainless steel appliances, and walk-in pantry integrate seamlessly with the family room, both a chef's dream and the pride of any avid entertainer. The primary bedroom features a double fireplace, a spiral staircase to the sunlit upstairs loft, and a New Orleans inspired en-suite bathroom with a step-up jetted hot tub, dual vanities, dual walk-in closets, and a luxurious walk-in shower. Don't miss this opportunity to live the resort lifestyle! HIGHLIGHTS OF ESTRELLA MOUNTAIN RANCH RESORT LIVING: 2 lakes (Yacht Club supplies paddle boats, kayaks) 2 Resident clubs houses w/fitness centers, AMAZING WATERPARK, plus 2 heated pools (1 lap pool) MILES AND MILES OF MOUNTAIN BIKING AND HIKING TRAILS. Golfing, Community Parks with Basketball and Tennis Courts, Pickle Ball, and Playgrounds. What are you waiting for?
30407 N 54th Street
Cave Creek, AZ 85331
$1,285,000
5
Beds
3.5
Baths
3,884
SqFt
Status
Active
MLS #
6686219
Property Type
Single Family Residence
Price Type
--
This luxury Toll Brothers home in the highly sought after gated community of Montevista in Cave Creek is just a short walk from the community park, with sport courts and a children's playground! An exquisite 5 bdrm, 3.5 bath residence with professionally designed landscaping, Travertine pathways & a grand courtyard entry! The turreted entry opens to the formal dining room & large media room with a 135-inch movie screen. The core of the home lies in the spacious great room which provides gorgeous backyard views and ample space for all social gatherings. The chef's kitchen is warm and welcoming and features stainless steel appliances, granite counters, dining area, breakfast bar, and a convenient desk area for studying or office work. The split primary suite is located downstairs and is a retreat that boasts soft carpet, a lavish ensuite w/dual vanities, large 6-ft soaking tub, oversized shower, and a spacious walk-in closet. Two additional bedrooms are also downstairs, currently being used as offices, and share an updated Jack-and-Jill bathroom. That's not all! There are two more bedrooms and another updated bathroom upstairs, with a cozy loft area. That backyard oasis is a dream, featuring a refreshing 8-ft deep Pebble Tec pool with water feature, paved covered patio and low maintenance landscaping, including mature citrus trees! Close to highly rated Cave Creek schools and short drive to shopping/dining in Old Town Cave Creek and Carefree to the north and Desert Ridge Marketplace to the south.
36460 N Secret Garden Path
San Tan Valley, AZ 85140
$1,285,000
3
Beds
3.5
Baths
2,658
SqFt
Status
Active
MLS #
6705640
Property Type
Single Family Residence
Price Type
--
Rare and very desirable Cordoba floor plan with 3 bedroom suites plus powder room, separate office AND a gorgeous golf course lot! Light and bright open great room concept with views of the 6th tee! Enter through custom iron front door into this beautiful home, with light wood floors in the main rooms, shutters , and cozy fireplace for those chilly Arizona winters! The dream kitchen offers B/I Monogram appliances, with elec cooktop that could easily convert to gas and huge W/I pantry!! Light stone counters with subway tile and light cabinets make this home a canvas to add your own color accents and style! The main bath has double sinks, a walk in shower, separate oval tub and large walk in closet. Location, view and floor plan make this one all the best of the Encanterra lifestyle!
22752 S 226th Place
Queen Creek, AZ 85142
$1,285,000
4
Beds
2.5
Baths
4,225
SqFt
Status
Active
MLS #
6733802
Property Type
Single Family Residence
Price Type
--
Elegance Meets Opulence: A Must-See Gem! Step into the epitome of luxury living with this architectural marvel. Beyond being a house, it's a sanctuary promising an elevated lifestyle filled with comfort and convenience. Here are some standout features: Designed Landscaping: Meticulously landscaped surroundings set the tone for opulence. Natural-Stone Covered Backyard Patio: Entertain or unwind in your private oasis. Big Pool with Water Features: Dive into crystal-clear waters with enchanting water features. Gazebo with Outdoor Furniture: Relax in the shade, surrounded by elegant outdoor furniture. Whole-House Six-Zone Audio System: Rich music flows seamlessly throughout. 13kW Tesla Solar System with Four Power Walls: Sustainable energy backup keeps you powered. 3-Car Air-Conditioned Garage with Level 2 Tesla EV Charger: Ideal for car enthusiasts. 16-Camera Video Security System: Comprehensive security for peace of mind. Home Security Alarm System: Ensures safety for you and your loved ones. Fireplace: Cozy up by the warm glow, unmatched in comfort. This masterpiece caters to every aspect of modern living.
15772 E Tumbleweed Drive
Fountain Hills, AZ 85268
$1,280,000
5
Beds
3.5
Baths
3,000
SqFt
Status
Active
MLS #
6767181
Property Type
Single Family Residence
Price Type
--
Stunning Mountain Views!! This incredible single level 5 bedroom, 3.5 bath redesigned home is truly one of a kind. Its a perfect split floor plan and checks off all the major boxes. Plenty of natural light. This professionally designed home will give you the feeling you are walking into a magazine cover vacation home. A perfect blend and use of textures. The kitchen features a large custom blue island topped with a stunning brushed natural stone top that changes coloring in the light. It also boasts two sinks for those busy chef days. The back white shaker cabinets offer over sized 42'' uppers , soft close hardware and set above a stunning marble full back splash. All new stainless appliances with the always desired pot filler above the cooktop. The bar prep area makes its own statement. Features include a built in microwave drawer as well a custom cabinetry, wall paper and lighting. The main living space is centered on a floor to ceiling fireplace, luxury vinyl plank flooring and a wall to wall custom beam with one of the largest ceiling fans you will ever see. Primary suite is massive and features a real working fireplace and its own separate sitting room that could also be used as a private office or den. The primary bath suite is a European style wet room. Large walk in shower, soaking tub, floating vanity and a LED mirror all conveniently located next to the large walk in closet. Each of the other 3 bathrooms are individualized so that they make their own statement. One of the bedrooms even has a fun loft. Great chill space to read a book. The garage is an oversized 3 car design with a ton of room for extra storage. The laundry has a large amount of storage with its custom cabinetry. Exterior notes- there is a pool designed for the home with a pool contractor ready to build if so desired. The home was professionally painted, a brand new paver driveway and walkway were just added, new custom garage doors , lighting, reclaimed wood ceiling, all new rock hardscape, waterless plant design, a built in BBQ eat in area, fire pit and plenty of room to add more outdoor entertainment. You will not find another home as unique and amazingly functional as this one. No HOA
7813 N Via Del Sol --
Scottsdale, AZ 85258
$1,280,000
2
Beds
2
Baths
2,229
SqFt
Status
Active
MLS #
6729199
Property Type
Single Family Residence
Price Type
--
Private retreat in the heart of McCormick Ranch. Voted ''Best Home on Tour'' Just as you can't judge a book by it's cover, don't miss the opportunity to see why this home won. Location & Style with amazing upgrades (list in documents tab), makes this beautifully maintained home capture your heart. The 3rd bedroom was converted to the new primary closet (it can always be undone if a 3rd bdrm is needed). Outdoor living with new Bullfrog spa, sparkling pool, built in BBQ, patios from primary & Family room, retractable awning and mature trees has loads of character and class. Office/den area can easily be used as a 3rd bedroom also. Skylights throughout add natural light, while landscaping adds privacy outside. Come fall in love!
5830 E Sierra Sunset Trail
Cave Creek, AZ 85331
$1,280,000
4
Beds
3
Baths
3,036
SqFt
Status
Active
MLS #
6712582
Property Type
Single Family Residence
Price Type
--
Stunning Torrey Pines model in beautiful Lone Mountain is nicely upgraded throughout with custom finishes. Designed for views & privacy, the backyard opens to a lush wash & Black Mtn views featuring a spacious travertine paver patio, sparkling pool w/water falls, built in BBQ, and artificial turf. The interior features tile plank floors & timeless neutral tile in the main living areas, new carpet in the bedrooms, shutters throughout, & custom cabinets in the family room. The open kitchen features GE Monogram stainless appliances, including a 48'' gas range w/griddle, granite countertops, beverage fridge at the large island & dining nook. The formal dining & living room offer ample entertaining space that flows to the large shaded patio. The master is split from the 3 BR/2 BA guest wing.
36709 N Stoneware Drive
San Tan Valley, AZ 85140
$1,280,000
3
Beds
2.5
Baths
2,731
SqFt
Status
Active
MLS #
6763814
Property Type
Single Family Residence
Price Type
--
You'll feel like home the moment you step into this beautiful Encanterra home. This Alora Plan is perfectly situated on the 16th tee with no fences or block walls to restrict your beautiful golf course, water, and Superstition Mountain views. Sit in the morning room to start your day or step out onto the travertine patio and enjoy the serenity of your surroundings as you watch the sunrise, or sip wine in the evening watching the mountains change in the reflective colors of the sunset. Desirable north south exposure allows you just the right amount of sun or shade along with your large front courtyard. Inside you'll find an amazing open floor plan with plenty of space to entertain or enjoy in your own way. The chef's kitchen is well appointed with high-end appliances, oversized island, granite counter, and cupboard space galore. Plenty of lighting including adjustable over-under cabinet and island lighting for just the right touch and mood. The smart room laundry area is well situated providing extra office, studio, or hobby space to enjoy. Every exquisite detail was carefully considered from crown molding, plantation shutters and upgraded tile throughout. If you're not ready to downsize quite yet or you need a little more elbow room, the 3 bedrooms plus a den will be perfect for you. The master suite with tray ceiling, expansive ensuite and walk-in closet gives you the space and privacy you desire, while guests can enjoy 2 large bedrooms and bathroom. No need to worry about parking or storage for all your toys as you have a 3-car garage with new epoxy flooring with built in cabinets. This home is just a short distance from La Casa and Algarve where you'll find resort style first-class amenities to enjoy including four pools, fitness center, pro shop, boutique, spa, restaurants, bars, pickleball, bocce ball, tennis, art studio and so much more. Abundant walking paths are found throughout the entire community. If you like convenience, you'll love being surrounded by all the shopping, dining, recreation, and entertainment that Queen Creek and San Tan Valley area has to offer. Come see for yourself why it's more than an incredible lifestyle that awaits you here at Encanterra.
4410 E Robin Lane
Phoenix, AZ 85050
$1,279,900
3
Beds
3.5
Baths
2,984
SqFt
Status
Active
MLS #
6763721
Property Type
Single Family Residence
Price Type
--
Welcome Home! This single-story gem is located a stone's throw from the A+ rated Desert Trail Elementary School & is surrounded by award-winning parks & lit walking trails. This Desert Ridge residence features an award-winning floor plan and has fantastic curb appeal, a professionally-designed backyard, including stacked stone walls that gives the home a resort-like feel. Gourmet kitchen w/ a walk-in pantry & a large island w/ an enormous amount of storage space with 32 cabinets. Buffet area allows for easy handling of large social events. Add the matching KitchenAid appliance package and a convenient R/O system and you have a dream kitchen. Close to Desert Ridge Marketplace, Loop 101, SR51 and I-17 freeways, hospitals, JW Marriott Desert Ridge, Wildfire Golf Club and more! The master bath is complete with 2 sinks, soaker tub and travertine shower and a huge master walk-in closet as well with plenty of hanger space. The 2 split bedrooms are over-sized and share a Jack and Jill bathroom. The hallway leading to the two bedrooms has a separate full bathroom that allows for being able to handle a high demand for family and guests. There is also a handy powder room located conveniently near the front entry. The dining room is complete with pillars and 12-foot ceilings that open to the living room. The backyard has your own resort feel. The play pool features a pebble-sheen finish and variable pump for easy and affordable care. A large grassy area, mature citrus trees, travertine pavers, convenient walkways and an entertainment area with a built-in bar-b-que really can turn the backyard into a true home vacation getaway. There is a dog run and a roomy Tuff-shed storage unit as well. The large 3-car garage has top of the line built-in cabinets for plenty of storage space and easy access to your water softener. Close to Desert Ridge Marketplace, loop 101, 51 and I-17 freeways, hospitals, JW Marriott Desert Ridge, Wildfire Golf Club and more.
2223 E Sahuaro Drive
Phoenix, AZ 85028
$1,279,000
3
Beds
3
Baths
2,558
SqFt
Status
Active Under Contract
MLS #
6769057
Property Type
Single Family Residence
Price Type
--
R E L A X in your one of a kind beach-house in the desert. The sand-colored micro-cement brings good vibes to every room. The smooth walls and dimmable lighting make all of the spaces laid back and easy to hang out in. The king-sized front porch makes saying hi to walking neighbors fun while you enjoy city lights and views of 4-peaks. The kitchen is open and friendly with lots of wonderful storage. Your backyard will be your hangout rendezvous. Behind the privacy wall and RV gate is plenty of storage space for RVs, boats, and toy trailers. The massive 2 car garage is finished in an attractive epoxy chip floor and even has a seprate workshop room in the back! Come see this get-a-way today.