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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37200 N School House Road Cave Creek, AZ 85331

$5,495,400
4 Beds
4.5 Baths
4,503 SqFt
Status Active
MLS # 6634118
Property Type Single Family Residence
Price Type --
'Pre Construction Offering, a signature 'Mountainside Gated Enclave' of Contemporary Estate Residences by Mosaic Luxury Homes. Pure privacy, nestled into the upslope of Black Mountain at over 2500 elevation, this 4503 sq. ft. Desert Modern Home is architecturally stunning and features over 3200 sq. ft. main level living. Fabulous Great Room with expansive covered veranda, temp controlled glass enclosed wine room, luxurious Owner's Suite, elevator lift and the most incredible 270 degree views. The lower level Guest Home has separate entrance, kitchen living room, large Jr. Suite and charming private patio. Mosaic Luxury Homes offers elegant owners suites, chef inspired kitchens, designer garages, resort outdoor living and superior design and craftsmanship.

38152 N 109th Street Scottsdale, AZ 85262

$5,495,000
5 Beds
6 Baths
6,169 SqFt
Status Active
MLS # 6641439
Property Type Single Family Residence
Price Type --
Cutting edge new build by Red Moon Homes. Located in the exclusive North Scottsdale private community of Mirabel. Contemporary design, all on one level with an upstairs guest home reached by an impressive cantilevered lighted wood slab tread and steel beam U shaped lighted staircase. To die for spacious outdoor living to enjoy with modern pool with sizeable beach entry and adjacent spa, covered grilling, living and alfresco dining space. The cool and clean look of artificial turf is plentiful and easy to care for. Modern minimalist exterior with stucco, rough limestone stack stone details, multitudes of glass doors and windows, metal roof and facia with multiple vaulted roof lines. The flawless floor plan with an open, high ceilings, airy great room, dining, kitchen, wet bar and powder provide for daily living as well as festivities with many. The private split primary sanctuary with cutting edge finishes, spa like bath, massive designer closet and patio access will delight. The nearby ensuite barn door entry office provides an exemplary workspace or can serve as a 5th ensuite guest room. Close proximity to the decadent laundry with mitered window detail and to the beautifully finished 4 car spic and span garage space, entices all. For family and friends the two guest ensuites on the main level provide privacy and elegance, wonderful retreats, one with patio access. The upstairs guest home is not to be believed. The sitting space, ensuite bedroom, living space with powder and breakfast bar complete with sink and faucet enchant. The North and South balconies, through 4 paned glass wall systems bestow elevated panoramic views of mountains, city lights, sunsets and starry skies. Sophistication is viewed throughout with the finest of finishes - new sizeable porcelain tiles used on bath floors and walls, wide wood plank floors throughout, SubZero and Cove appliances, rift cut and lacquered slab cabinetry with lit toe kicks, fabulous top of the line exotic Quartz counter and vanity slabs and chrome and the new brass hardware. Mirabel's intimate community offers, golf, tennis, fitness and social endeavors. Come, live the Arizona desert lifestyle with comfort, opulence and functionality in this magnificent Red Moon Homes built Mirabel home.

5444 E Sanna Street Paradise Valley, AZ 85253

$5,495,000
5 Beds
6.5 Baths
7,152 SqFt
Status Active
MLS # 6782647
Property Type Single Family Residence
Price Type --
Nestled on an expansive 1-acre lot in beautiful Paradise Valley, this stunning residence is an entertainer's dream, with an array of luxurious amenities and a fabulous guest house. Designed for ultimate functionality, the 4,855 square foot main house, has a split floor plan with 4 en-suite bedrooms, an office, a playroom and a gym. Beautiful white oak flooring throughout and a clean design, make this home warm and timeless. The attached 2,296 square foot guest house, was recently remodeled, with a full chef's kitchen, living room, bedroom, bathroom, laundry and movie theater- perfect for hosting guests and entertaining! The backyard is built for nonstop entertainment with a large pool, spa, sport court, firepit, in ground trampoline and batting cage. Located in one of Paradise Valley's most coveted areas, this home is just minutes from top-rated schools, world-class golf courses, shopping, and fine dining. Don't miss out on a property that embodies the best of Arizona luxury living in a prime location!

35801 N Meander Way Carefree, AZ 85377

$5,495,000
3 Beds
5 Baths
6,501 SqFt
Status Active
MLS # 6749384
Property Type Single Family Residence
Price Type --
Chic single level contemporary new build completed in 2023 in Carefree on Black Mountain! Nestled on a sprawling mountainside estate spanning 1.6 acres, offering breathtaking vistas of Black Mountain, Boulders Resorts golf courses, and beyond. This architectural gem is a testament to modern luxury living, meticulously crafted with unparalleled attention to detail. Upon entry, you are met with great room, featuring soaring 16-foot ceilings, expansive 30-foot wide glass pocket doors, and a sleek modern fireplace adorned with porcelain slabs. Floor-to-ceiling 10-foot glass walls frame the awe-inspiring views, seamlessly blending the indoors with the natural splendor outside. The European-inspired kitchen is a culinary enthusiast's dream, showcasing a over 15-foot long island finished with luxurious Taj Mahal quartzite, Miele appliances, and a spacious breakfast nook enveloped by sliding glass doors. For added convenience, a full prep/catering kitchen awaits. Step outside to the sprawling 14-foot high ceiling covered patio, featuring limestone floors and a misting system, creating an outdoor oasis to unwind, entertain, and revel in the panoramic views of the valley and city lights. The focal point of the backyard is the exquisite custom negative edge pool and spa, perfect for relaxation and rejuvenation. Retreat to the sumptuous primary suite, complete with dual custom closets and a spa-like bathroom featuring dual water closets, freestanding tub, marble floor and wall surrounds, and a steam shower. Additional rooms include an expansive office with custom bookshelves and a private patio, along with a versatile flex space ideal for a gym, game room, or additional bedroom, offer flexibility to suit your lifestyle. Two spacious ensuite guest rooms complete the guest wing! Designed for modern living, this home boasts a Creston smart home system, allowing for effortless control of lighting, music, HVAC, pool, shades, and security with a simple touch. A 4-car garage with oversized doors, a spacious laundry room with double washer and dryer, and lush turf grass area add to the convenience and allure of this remarkable property. Welcome home!

38031 N 97th Way Scottsdale, AZ 85262

$5,485,000
4 Beds
4.5 Baths
6,556 SqFt
Status Active Under Contract
MLS # 6443503
Property Type Single Family Residence
Price Type --
DESERT MTN. MEMBERSHIP NOW AVAILABLE WITH CLUB APPROVAL, ASK FOR DETAILS. Brand New Mortensen Signature Home. Now Completed 5750 sq ft main house plus stand alone 806 sq ft Casita with a king size bedroom, kitchen, large bathroom, closet and living room. Main house includes a large flex room, great for a Game Room, Home Theater or a hobby of your choice. Great Room, Gourmet Kitchen, Home Office and Master Bedroom have stunning S/W sunset views that overlook your pebble tec pool and spa. Custom built in BBQ, landscaped front and rear with auto drip systems, pots and lighting all included. Unlimited options for your family and friends. Whole home furniture packages available.

10039 N Mcdowell View Trail Fountain Hills, AZ 85268

$5,450,000
4 Beds
5.5 Baths
6,068 SqFt
Status Active
MLS # 6750498
Property Type Single Family Residence
Price Type --
Extravagant custom home to be built in the beautiful hillside community of Firerock. Building to start as early as mid November with an estimated completion time of late 2025 to early 2026. The design of this home accentuates the views of the McDowell Mountains to the North and Four Peaks to the East. This home features 4 bedrooms, a theater room, and a study on the main level. There is a very large bonus room on the garage level. An elevator that brings you from the garage to the main level. Kitchen looks out past an L-shaped slider for an indoor/outdoor living feel. The luxury pool and raised spa are the focal point of the kitchen view. Built in BBQ area, planter boxes and a raised grass/garden area finishes off this luscious outside living space.

5455 E Berneil Drive Paradise Valley, AZ 85253

$5,435,000
5 Beds
5.5 Baths
7,010 SqFt
Status Active
MLS # 6753337
Property Type Single Family Residence
Price Type --
This luxurious estate is located in the gated Hidden Paradise neighborhood of Paradise Valley, an exclusive enclave known for its seclusion and prestige, featuring 17 exceptional homes which are rarely on the market. As you approach the property, the beautifully landscaped grounds catch your eye, leading you to the circle driveway with a porte-cochère. The grand entrance of the home features a striking 10-foot door that opens into a beautiful stone foyer, offering a glimpse straight through the living room and out to the outdoor spaces. The recently renovated home boasts stunning grounds, light and bright lavish interiors with spacious rooms, soaring ceilings and expansive high windows that bring the outdoors inside. New hardwood floors add warmth and elegance to every room,

20242 N 103rd Way Unit 1246 Scottsdale, AZ 85255

$5,400,000
5 Beds
5.5 Baths
5,463 SqFt
Status Active
MLS # 6778867
Property Type Single Family Residence
Price Type --
Esteemed location in Silverleaf, desirably located in the Windgate Pass guard gate this stunning custom ranch estate is beaming with charm and character. Architecturally striking curb appeal with welcoming grass front yard with spacious entertaining courtyard with fireplace and covered porch entry. Well-designed home plan offers functionality and sophistication, with the great room as the heart of the home anchored with a grand stone fireplace with soaring wood beam lined ceilings and wrap around wet bar, spacious secondary ensuite bedrooms, executive office and plus den with dual access to great room and secondary bedroom wing, this gem offers optimal living experiences. Inviting kitchen oversized eat in island opens to front covered porch convenient for relaxing and unwinding, or perfect for social gatherings in front courtyard. Refined style, with impressive details woven throughout including wood accented ceilings with beams, tongue/groove, coffered, and brick features, stone and wood flooring, and wood window shutters. Enchanting backyard boasts Sonoran Mountain views featuring heated pool and spa with lounging hardscape, expansive covered patio with fireplace, built-in BBQ and ramada for entertaining, firepit with sitting area, and generous turfed grass area. Sought after location, conveniently located near neighborhood parks and lake, this ranch one story with no stairs or step downs will impressive the most discerning clients.

8037 N 7th Avenue Phoenix, AZ 85021

$5,400,000
6 Beds
6 Baths
7,200 SqFt
Status Active
MLS # 6774614
Property Type Single Family Residence
Price Type --
Miami Meets Phoenix!! With a Fashion Glare to Contemporary Lifestyle! Welcome to (Nick-Named) FontaineBleau-New Construction 2024 Just Completed! A Must See to Experience the Quintessential Essence of Sophistication. Features A True Entertainers Style w/ Ease. Starting From Your Fingertips w/a Whole House Programable (RTI) Smart System Including Multiple iPad/Remotes( Lutron, Sonos & more), Full Wolf Appliance Package w/Custom 60inch Stainless Steel Hood, SubZero Frig/Freezer, 18ft Long H2O-Fall Granite Island, 48x48 Tile Floor from Italy, 21ft Enormous Tiled Fireplace, Floating Staircase, 5 Bosh a/c Units, Under-Mount Lighting, RO & Whole House Soft H2O Drinking System, Wine Cellar, 24ft Palm Trees, Resort Style Yrd, Sparking Blue Pool, w/Sunken Fireplace, Full BBQ, & Gazebo. Tons More!!

12232 N 65th Place Scottsdale, AZ 85254

$5,389,000
5 Beds
5.5 Baths
6,637 SqFt
Status Active
MLS # 6730125
Property Type Single Family Residence
Price Type --
Cactus Corridor Luxurious Estate with Resort-Style Amenities Experience the pinnacle of luxury and sophistication with this exquisite transitional estate, nestled on nearly an acre of beautifully landscaped grounds in the coveted Cactus Corridor. Spanning 6,637 square feet, this home seamlessly blends elegance and functionality, offering a lifestyle of unparalleled comfort and style. Upon entering, you are greeted by a thoughtfully designed layout featuring five spacious bedrooms and five and a half opulent bathrooms. The master suite is a true sanctuary, complete with a luxurious bath and his-and-her walk-in closets, providing a serene retreat. Each of the additional bedrooms also boasts walk-in closets, ensuring ample storage and privacy for every member of the house

4946 N Ascent Drive Scottsdale, AZ 85251

$5,360,130 - 4Br/5Ba -  for Sale in Phoenician, Scottsdale
Open House
$5,360,130
4 Beds
4.5 Baths
4,394 SqFt
Status Active
MLS # 6748851
Property Type Single Family Residence
Price Type --
Designer fully Furnished Home Coming Soon! This Cullum Home is designed for that ''Lock and Leave Lifestyle''. Guests will enter into the all Glass 2 story foyer. The elevator or wood staircase will lead you to the second floor of this home. The Chefs kitchen with Custom Cabinetry, Sub Zero and Wolf appliances over look the great room with fireplace wall and large glass of windows that open onto a entertaining deck. The formal dining room with custom cabinetry temperature controlled wine wall is just opposite of the large office, den or movie theater space with sliding glass doors to the entertaining outdoors and wall water feature The two en suite guests suites accommodate King size beds and walk in closets. Both guest suites open onto the fully landscaped backyard. There is a private gate from the yard for quicker access the Mountainside Club. Guests have their own laundry and the stylish powder room complete the main floor of this home. The top floor of this easy living home is dedicated to the Primary Oasis. The large patio space with walls of glass and windows has a tiled fireplace all overlooking the incredible views of the Mountains and city lights in the distance. The Primary suite with high ceilings opens into the bath with large shower, his and hers sinks and soaking tub. Tons of natural light fill the bath with a large skylight. The Primary closet is massive with all the custom built ins. The extra bonus space can be used as another en suite bedroom, office, or work out room. There also is a Full Wet Bar and nice size laundry with plenty of extra storage. The large oversized 3 car tandem garage has epoxy flooring and pre wired for A/C. The Private elevator, outdoor spaces and with this home coming fully furnished is easy living at it's finest.

11540 N 104th Street Scottsdale, AZ 85260

$5,359,200
6 Beds
7.5 Baths
6,496 SqFt
Status Active
MLS # 6766641
Property Type Single Family Residence
Price Type --
Stunning New Construction Modern Home in the Prestigious Shea Corridor Experience luxury living in this breathtaking modern home, perfectly situated in the highly sought-after Shea corridor. Designed for both elegance and function, this property boasts 16-foot vaulted ceilings that create a grand sense of space and light. At the heart of this home is a chef's kitchen, outfitted with high-end appliances and premium finishes, perfect for gourmet cooking and entertaining. With 6 spacious bedrooms and 7.5 bathrooms, every family member and guest will enjoy unparalleled comfort and privacy. For car enthusiasts, there's a 4-car garage and an impressive 57-foot RV garage, offering abundant storage for vehicles and recreational toys. The resort-style backyard features a brand new pool, making it a personal oasis for relaxation and outdoor gatherings. Whether hosting a grand event or enjoying quiet luxury, this home is a true entertainer's dream. Don't miss the chance to own a masterpiece of modern design in one of the most desirable neighborhoods.

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