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.

Click Here to See What Your Home is Worth

36070 N Prickley Pear Road Unit 89 Cave Creek, AZ 85331

$5,750,000
5 Beds
5.5 Baths
5,828 SqFt
Status Active
MLS # 6788814
Property Type Single Family Residence
Price Type --
Steve Jensen Homes unveils a masterpiece of luxury in Canyon Ridge Estates, Cave Creek. This remarkable home offers 3 spacious bedrooms and 6 elegantly designed bathrooms in the main residence, blending sophistication with comfort. Thoughtful amenities include a game room, private office, an expansive man cave complete with a media area, built-in bar, and a striking glass overhead door leading to the garage. The separate casita adds versatility, featuring 2 additional bedrooms and a bathroom, ideal for hosting guests. The heart of this home is the state-of-the-art kitchen, equipped with premium appliances and a dedicated prep kitchen, perfect for effortless entertaining. Walls of glass create a seamless transition between indoor and outdoor living spaces, inviting you to enjoy the serene Arizona landscape in unparalleled style. The luxurious primary suite is a private retreat, complete with a warm fireplace and a spa-inspired bath designed for ultimate relaxation. Step outside to an outdoor oasis, where a cozy fireplace, fully equipped outdoor kitchen, firepit, sparkling pool, and soothing spa create the perfect space for entertaining or unwinding. For car enthusiasts, the property boasts a 4-car garage and a separate RV garage, offering generous storage for all your vehicles. Discover the perfect balance of luxury, functionality, and timeless sophistication in Canyon Ridge Estates.

6324 N 48th Place Paradise Valley, AZ 85253

$5,750,000
5 Beds
6 Baths
7,292 SqFt
Status Active
MLS # 6757553
Property Type Single Family Residence
Price Type --
Set on nearly 1.5 Acres, this expansive lot offers UNMATCHED PRIVACY, STUNNING VIEWS, & MULTIPLE OUTDOOR AREAS. Originally built in 1975, added onto & rebuilt in 2007. Recently upgraded to high-quality syn. turf for low-maint. upkeep & water conservation. The floor plan is exceptional, featuring a Primary Suite that includes an executive office, a spacious exercise room with closet, a secondary laundry area, & completely separate his-and-her primary bathrooms. The Primary also enjoys a pvt. courtyard with built-in spa, fireplace, & mtn-view window. Featuring a total of 2 offices, a large primary laundry room, & an eat-in kitchen with views of the backyard. Additionally, there are 2 en-suite beds & a generous game room that can be converted into a 3rd bed. PLUS an attached GUEST CASITA... complete with living room, fireplace, full kitchen, bedroom w/ walk-in closet, and full bath. The grounds also features a discretely situated 'Taj Mahal' of henhouses and garden. Back of home parking with 2 slab spaces and a 4-car garage with large climate controlled storage room and 2 separate storage closets. Convert the storage room, 1 of the 2 powder rooms, and the 2nd office to make a spacious 7-car garage. End of cul-de-sac location with large circular drive and additional guest parking.

10612 E Winter Sun Drive Scottsdale, AZ 85262

$5,750,000
5 Beds
9 Baths
9,471 SqFt
Status Active
MLS # 6784147
Property Type Single Family Residence
Price Type --
FULL GOLF MEMBERSHIP IS AVAILABLE subject to the club bylaws and membership approval. This gated mediterranean style masterpiece has multiple high-end finishes, including numerous architectural details, recessed lighting, & brick details. Great entertaining home w/ large walk-behind full bar area & temperature-controlled wine room strategically placed between the kitchen, great room, and dining areas. The home has 5 bedrooms, 6 full baths, & 3 half baths. Included in that count is a detached 2-room casita w/ kitchenette and stacked W/D. The 2 oversized 2-car garages make this home perfect for the car enthusiasts. Other features include an elevator, home theater, office, & game room w/ an additional wet bar. The luxurious primary suite bath has plenty of storage & a steam shower. The outdoor living space includes 2 covered BBQ areas and room for both dining & lounging areas. Furniture is available under separate Bill of Sale.

8843 N 63rd Place Paradise Valley, AZ 85253

$5,750,000
5 Beds
5.5 Baths
5,930 SqFt
Status Active
MLS # 6684784
Property Type Single Family Residence
Price Type --
Modern Traditional~The warmth of a Santa Barbara with modern updates . Welcoming front patio with fireplace and comfy seating that opens to the dining room with custom wine wall . Chefs kitchen with island and seating open to 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. .Also a Lift in the garage ! Well maintained and upgraded tastefully with steel windows and doors throughout.

24863 N 103rd Way Scottsdale, AZ 85255

$5,695,000
4 Beds
4.5 Baths
5,932 SqFt
Status Active
MLS # 6723326
Property Type Single Family Residence
Price Type --
Amazing opportunity for brand new build contemporary styled construction in North Scottsdale! Camelot Homes award winning Cavallo floor plan offers all Single level and the best indoor/outdoor living. Price includes all structural components, wine wall, highly upgraded contemporary cabinets , oversized tile flooring, countertops and tile, electrical and low voltage upgrades as well as 3 en suite bedrooms, casita, office and bonus room along with standard 4 car garage. Amazing views from courtyard and rear yard. Price also includes upgraded pool and landscaping. Pool/landscaping currently being installed. Estimated closing End of the year 2024. Video is from our Bronco model and not representative of home for sale.

10234 E Journey Lane Scottsdale, AZ 85255

$5,650,000
5 Beds
5.5 Baths
6,841 SqFt
Status Active
MLS # 6794727
Property Type Single Family Residence
Price Type --
This 6,841-square-foot home in the desirable Windgate Pass neighborhood of Silverleaf combines elegant design with functional living. The residence includes 5 bedrooms, 5.5 bathrooms, and a thoughtful layout featuring a spacious dining room with access to the covered patio, a custom office, and a guest casita for added convenience. This home showcases quality craftsmanship with stone and wood floors, high ceilings with exposed beams, and a custom fireplace in the great room, creating a welcoming atmosphere. Practical touches like custom cabinetry and a wet bar further enhance its appeal. The well-appointed kitchen is equipped with high-end appliances, dual dishwashers, and a stylish wine wall, while the adjacent breakfast room enjoys plenty of natural light and peaceful views. The primary suite on the main level offers a comfortable retreat with a sitting or exercise area and a spa-like bathroom. The guest casita provides privacy for visitors, while a flexible space and a second-level patio with views of the mountains and city lights offer versatile options for work or leisure. Outside, the backyard features a pool, spa, outdoor fireplace, barbecue area, and a grassy play space, perfect for enjoying the Arizona climate. The home also includes a 3-car garage and is located in one of Scottsdale's most sought-after communities. Situated in the Silverleaf community, residents enjoy access to exceptional amenities, including tree-lined streets, private parks, and the renowned Silverleaf Club, which offers a golf course, clubhouse, spa, and more for a luxury resort lifestyle.

4021 E Claremont Avenue Paradise Valley, AZ 85253

$5,650,000 - 4Br/5Ba -  for Sale in Lincoln Ridge, Paradise Valley
Open House
$5,650,000
4 Beds
4.5 Baths
6,155 SqFt
Status Active
MLS # 6775893
Property Type Single Family Residence
Price Type --
One of the most unique homes in Paradise Valley. You pause as the private gate opens revealing the stunning entrance framed by two custom fountains. As you open the incredible hand crafted front door you are overwhelmed by the view from the large. Courtyard. This meticulously well maintained home with lush landscaping offers alfresco dining alongside the sparkling 20' lap pool and spa. focusing directly on Camelback Mountain. Fourteen foot ceilings reign over the large sliding glass windows which disappear into the walls with the push of a button. This house was created for indoor outdoor entertaining. The kitchen, a chef's dream features Gaggenau appliances, a 6x11 soapstone island with Paul Henningsen's Artichoke Lighting above also includes a well appointed butlers pantry. The open kitchen concept embraces a spacious family room and inviting breakfast nook with corner fireplace. Massive exotic Tiger Wood barn doors are featured in the two en-suite guest bedrooms. Virtually every room captures our magical Arizona lighting and views from nearly every room of the three iconic mountains, The Preserve, Mummy and Camelback. Two separate offices, one with distinctive large fireplace allow more than one person to work while home. At the end of the courtyard visit the entertainment room or stay in shape with the private gym adjacent to the large self contained Casita. The air conditioned 3 car garage has additional storage for bikes and holiday decorations. Privately positioned with easy access to AJ's, Global Ambassador, Steak 44, Paradise Valley Country Club and PCDS. Minutes to Phoenix Airport, HWY 51 & 101.

12913 N 119th Street Scottsdale, AZ 85259

$5,600,000
7 Beds
11 Baths
11,548 SqFt
Status Active
MLS # 6743300
Property Type Single Family Residence
Price Type --
LUXURY PROPERTY AUCTION: BID 10-23 JANUARY. Listed for $5.6M. Starting Bids Expected Between $2M-$4M. Perched atop the prestigious guard-gated golf club community, this estate offers sweeping panoramic views of Camelback Mountain and the city lights below. With its unparalleled privacy and expansive design, the home is the ultimate entertainer's dream. Guests can relax in the movie theater, gather around the billiard bar, or unwind in the luxurious fitness center with a sauna. Designed for seamless indoor-outdoor living, the open-concept kitchen and living areas flow effortlessly to the fully equipped bar and expansive outdoor patio. A private courtyard features two pools with waterfalls, a spa, and a charming detached guest house. The sprawling grounds also include a separate gues suite, providing a total of seven bedrooms and eleven bathrooms. For the car enthusiast, a seven-car garage offers ample space, including room for an RV or boat. This estate is more than just a home; it's a destination, offering the perfect blend of luxury, privacy, and proximity to Scottsdale's finest amenities

5301 E Via Buena Vista Paradise Valley, AZ 85253

$5,595,000
9 Beds
10 Baths
10,407 SqFt
Status Active Under Contract
MLS # 6794693
Property Type Single Family Residence
Price Type --
In the prestigious enclave of Mockingbird Estates in Paradise Valley, is this stunning Italian Mediterranean estate, built in 2010, and sits gracefully on over an acre of lushly landscaped grounds. Meticulously designed across three levels, the home offers a harmonious blend of luxury, comfort, and timeless architectural elegance. The main level sets the tone for grandeur with its dramatic 20-foot ceiling entryway. The primary suite serves as a private retreat, featuring two custom walk-in closets, a spa-like bath with dual water closets, a 100-square-foot shower, a glamorous main closet, and a serene sitting area adorned with backlit niches and groin-vault ceilings. Three additional en-suite bedrooms showcase thoughtful finishes, while the gourmet kitchenequipped with top-of-the-line appliances, a Miele coffee maker, and custom cabinetrycaters to culinary enthusiasts. On the upper level, the home offers two more en-suite bedrooms, a versatile bedroom/office, and expansive windows that frame serene views of the estate. The lower level transforms into an entertainment haven, featuring a state-of-the-art home theater with 14 speakers, a party room with a wet bar, a wine room, and an en-suite bedroom that opens to the backyard. Stepping outdoors, the resort-like backyard is a true oasis. It boasts a heated play pool and spa, a sport court, and a detached casita complete with a bedroom, kitchen, and bath. Dozens of mature citrus trees create a verdant canopy, adding to the serenity of the space. Additional features include a library, two ornate staircases, two dedicated offices, and a Mediterranean gallery showcasing Corinthian columns and artisan details. A porte-cochere and auto court lead to two garages with space for five vehicles, complemented by Italian-inspired fountains and ironwork reminiscent of Southern Europe. Modern conveniences such as seven AC units, a water purification system, and central vacuuming ensure comfort and efficiency. This exceptional estate embodies elegance and functionality, offering unparalleled luxury in one of Paradise Valley's most sought-after communities.

9821 E Sundance Trail Scottsdale, AZ 85262

$5,595,000
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.

10701 E Jomax Road Unit 1 Scottsdale, AZ 85255

$5,575,000
5 Beds
5 Baths
5,000 SqFt
Status Active
MLS # 6707666
Property Type Single Family Residence
Price Type --
A striking 'Moditerranean' from Temac Development and Candelaria Design Associates - Situated on 2.5 Acres, this classic estate boasts some of the best views in the area with privacy and seclusion. Unobstructed views of Pinnacle Peak, Troon Mountain, and Troon Country Club, all with the freedom of no HOA. Nearby world-class Four Seasons Resort Scottsdale. Your inquiry to this iconic estate is welcomed.

24779 N 91st Street Scottsdale, AZ 85255

$5,500,000
4 Beds
4.5 Baths
5,010 SqFt
Status Active
MLS # 6779265
Property Type Single Family Residence
Price Type --
NEW 2024 CONSTRUCTION contemporary masterpiece awaits in prestigious North Scottsdale Solitude community, situated on a premier lot with breathtaking south-facing views of the McDowell Mountains, Camelback Mountain, open desert, and sparkling city lights. A true architectural gem designed by Swaback Architects and built by Sonora West Development, this 5000+ square feet 4-bedroom, 4.5-bathroom with a den or office space blends seamlessly into the desert landscape with clean lines and an eye-catching façade. Inside, the modern minimalist open concept design is equipped with advanced Smart Home technology, ensuring every modern convenience is within reach and welcoming you with soaring ceilings, oak wood floors, custom chandeliers, and high-end finishes throughout. Expansive retractable doors lead to a stunning South-facing outdoor living area, where the outdoor views are just as remarkable as the interior finishes. This resort inspired space features a heated pool and spa, stone paver decking, custom fire pit, and barbecue area with stone finishes. The custom designed landscape includes stone paver patios, turf, desert plantings, and stylish block and metal fencing, all visible from covered patios with wood tongue-and-groove ceilings. This Arizona desert retreat is truly a ready-to-enjoy oasis.

Leave a Reply

Your email address will not be published.