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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10044 E Graythorn Drive
Scottsdale, AZ 85262
$1,100,000
2
Beds
2.5
Baths
1,836
SqFt
Status
Active
MLS #
6776284
Property Type
Townhouse
Price Type
--
Best value for a Desert Mountain residence! Make this quaint Sonora Cottage Village your desert retreat! Great room plan with two king ensuites. Enjoy the meandering greenbelt with walking trails. Shaded patio provides relaxation and resort environment with heated spa. As a community resident, enjoy 25+ miles of private hiking trails encircling Apache Peak (4600+ ft elevation) and providing breathtaking 360* views of mountain ranges and the entire Valley of the Sun. Desert Mountain Club membership office will advise of availability. Club amenities are available for members only.
5615 E Olesen Road
Scottsdale, AZ 85266
$1,100,000
4
Beds
3
Baths
2,417
SqFt
Status
Active
MLS #
6783682
Property Type
Single Family Residence
Price Type
--
Absolutely Charming! You will fall in love with this 4 Bedroom 3 Bath 3 car garage home on a quiet paved street! This incredible property features fresh paint inside and out, custom window treatments, dual pane windows, all tile floors, custom closet systems, epoxy floors and custom cabinets in the garage and so much more! The large open Island kitchen boasts hardwood cabinets, stainless appliances, granite countertops, tiled backsplash and a huge pantry! The primary bedroom features a double door entry with a private exit to the backyard and a huge bath with dual vanities, separate shower, large soaking tub and a great closet! Walk out back to your own private desert oasis with mature landscaping, RV parking all backing a large open wash and surrounded by mountain views!
2327 N Beverly Place
Buckeye, AZ 85396
$1,100,000
5
Beds
3.5
Baths
4,329
SqFt
Status
Active
MLS #
6777767
Property Type
Single Family Residence
Price Type
--
BEAUTIFUL HOME ON THE WASH WITH FABULOUS SUNRISE, MOUNTAIN AND CITY VIEWS!! This stunning home's Kitchen includes quartz countertops, backsplash, beautiful hardware, an upgraded Monogram gas stove, and a huge pantry. The living room and covered back porch have an electric fireplace to keep you warm. This home is spray foam insulated with energy efficient windows throughout. Beautiful wood look tile and brand new carpet! Master suite on first level has separate shower, jetted tub, and huge walk in closet. There is a bonus/6th bedroom upstairs along w/ a game room. Other upgrades include plantation shutters, epoxy garage floors, pool, turf & a view fence to watch the morning sunrise. The owners are VERY clean and have filled this home with love. Take a look at this home of all homes!
11063 E Gamble Lane
Scottsdale, AZ 85262
$1,100,000
3
Beds
3
Baths
2,751
SqFt
Status
Active
MLS #
6777021
Property Type
Single Family Residence
Price Type
--
Nestled in Scottsdale's prestigious Troon North community, this upgraded, single-level home provides the perfect retreat in one of Arizona's most sought-after neighborhoods. Situated on a premium corner lot, the ideal location enhances the home's overall privacy and appeal. With beautiful desert landscaping, enjoy seasonal fresh oranges & lemons, a welcoming front courtyard and a manicured façade, the exterior sets the tone for the elegance within. Once inside, you'll be greeted by an open-floor plan that effortlessly flows from room to room. A spacious living area offers high ceilings and large windows, creating an airy atmosphere while showcasing the entertaining backyard. While in residence, the owners have undertaken over $250K in improvements, offering warm tones & finishes (more) throughout, including Saltillo & wood floors, custom lighting, plantation shutters, upgraded interior & exterior paint & electric shades. The gourmet kitchen is equipped with stainless steel appliances, Brazilian granite countertops & backsplash, a generous island that's perfect for entertaining & a picturesque view of the surrounding landscape. Home theater wired for 7.2 surround sound with inbuilt speakers. An inviting primary suite offers a serene escape & provides direct access to the outdoor pool. The ensuite bath features dual vanities, a jetted tub, and a spacious walk-in shower. Two additional BR's (one w/ access to the front courtyard) a hall BA & a separate office w/ ensuite provide ample space for work & guests. The highly favored 3CG is equipped with epoxy floors & custom built-in storage. Discover your own private backyard oasis thoughtfully enhanced & designed with entertaining in mind, featuring a sparkling pool with waterfall feature, spacious patio, a built-in BBQ & custom fireplace, & manicured landscaping. Ascend to the rooftop observation deck, where you could take in the surrounding mountain views from Tom Thumb to South Mountain, stunning sunsets, captivating city lights & night skies. Located in the heart of Troon North, this home offers access to world-class golf, nearby trails, and the vibrant Scottsdale lifestyle. Don't miss the opportunity to own this remarkable residence that perfectly blends comfort & convenience!
16746 W La Reata Avenue
Goodyear, AZ 85395
$1,100,000
2
Beds
2.5
Baths
2,175
SqFt
Status
Active
MLS #
6781338
Property Type
Single Family Residence
Price Type
--
This Nearly NEW home features an amazing backyard with multiple entertaining areas, built-in BBQ, self-cleaning sparkling pool & secluded hot tub, perfect for year round enjoyment! Inside, enjoy an open floor plan with wood-look tile, remote blinds & shutters, a gourmet kitchen with soft-close cabinets & drawers, pull outs in lowers, quartz counters, large island & high-end SS appliances w/vented hood. The spacious primary retreat includes dual sinks & walk-in closet. This home also offers a fully insulated, 2.5-car garage with A/C, chip flooring, overhead storage, utility sink & RV outlet. A flexible den & powder room complete this upgraded home. Easy-care landscaping makes this the perfect retreat! Owned SOLAR to heat pool. This home is truly a dream come true and MOVE-IN ready! This very Active Adult community includes 3-18 hole Golf Courses, 40+ Pickleball & Tennis Courts, State of the Art Fitness Centers, Creative Arts Center, Multiple resort style Pools and Hot Tubs, Theater with live performances, Casual dining, Billiards room, Bocce courts and more. Come take a look!
11305 S 195th Drive
Buckeye, AZ 85326
$1,100,000
4
Beds
2
Baths
2,857
SqFt
Status
Active
MLS #
6781143
Property Type
Single Family Residence
Price Type
--
Craftsmanship Meets+Custom Resort on Acre! This pristine Oasis offer's Quality Craftsmanship everywhere you look! No upgrade was spared, this was the Custom builder model to showcase their options so you can only imagine. When you enter the Great room you will notice the open inviting 12 foot ceilings. Gourmet kitchen with high end granite countertops, stainless steel appliances w/rich solid knotty alder cabinets, Hard wood floors, Custom doors, Travertine floors, Subzero refrigerator, Stainless steel double ovens, a walk in pantry and lots of pull out shelves, gas stove, Primary bath has huge walk-in closets snail shower & extensive tile, built in cabinets, One of the room is used as an office with built in Murphy bed. The backyard is fenced in and private with mountain views from the
7090 E Morning Vista Lane
Scottsdale, AZ 85266
$1,100,000
3
Beds
2.5
Baths
2,852
SqFt
Status
Active
MLS #
6783619
Property Type
Single Family Residence
Price Type
--
What a great opportunity to own a property in the saught after Carriage Trails community of Scottsdale! Located on a half-acre (24,705 sqft lot), this home boasts 3 Bedrooms with 2.5 bathrooms and an office/den that could easily be convereted to a 4th bedroom with a built in desk/ bookshelves, a 3-car garage, its very own heated private pool & spa, built-in gas fire pit & grill! This spacious lot holds so many possibilties! The interior showcases lovely original features along with high vaulted ceilings, a split floor plan, a gas fireplace showcasing lovely stonework & a built-in wet bar for entertaining! Well maintained, the 2 HVAC units have been fully replaced recently & the walls contain thick insulation to keep the home cool in the summer! Seller is motivated. Make an offer today!
13653 E Aloe Vera Drive
Scottsdale, AZ 85262
$1,100,000
4
Beds
3
Baths
3,025
SqFt
Status
Active
MLS #
6783334
Property Type
Single Family Residence
Price Type
--
(UNDER CONSTRUCTION) New Construction desert home. This new build with NO HOA, MASSIVE open Kitchen & living room with high-end Cabinets, Quartz Countertops, 36'' Cooktop, Built-in Stainless Steel Microwave and double ovens, & upgraded flooring. The upgrades continue with a stunning Master Bathroom with a Freestanding Soaking Tub, Modern Shower and Beautiful Double Vanities, an oversized four car garage, RV Garage, private well and more!!! (pictures useed in this listing are of a previous project and represent what the home may look like).
3818 E Stacey Road
Queen Creek, AZ 85142
$1,100,000
4
Beds
3.5
Baths
3,122
SqFt
Status
Active
MLS #
6773153
Property Type
Single Family Residence
Price Type
--
Welcome to a masterpiece of modern luxury living, boasting over $250K in upgrades and situated on a nearly one-acre lot. From the moment you arrive, the impressive $40K paved driveway and circular drive catch your eye, surrounded by elegant wrought iron fencing that offers privacy and style. Step inside and be greeted by real oak wood flooring, soaring 14-foot ceilings in the primary living area, and upgraded art showcase recessed lighting, creating a spacious, airy ambiance. The double sliding glass patio doors open to the large paved patio and backyard, making indoor-outdoor living seamless and perfect for hosting. The kitchen is a true chef's delight, featuring $75K rustic maple cabinets imported from Oregon, complemented by $25K in granite countertops. The centerpiece is the grand stone-covered island, providing ample counter space for cooking and entertaining. Additional features include new stainless steel appliances, extended cabinetry for optimal storage, and a walk-in pantry complete with a separate standing freezer. The $10K stylish backsplash in the kitchen and bathrooms adds a sophisticated touch, while the upgraded lighting and electrical packages ensure every detail shines. The primary suite is nothing short of a private sanctuary, offering a luxurious soaking tub, a massive tiled shower with a built-in bench, and multi-function rain and adjustable hose showerheads. The suite also boasts a huge walk-in closet with direct access to the spacious laundry room featuring custom cabinetry. Throughout the home, plank-style tile flooring in the bathrooms, spray-in foam insulation for lower utility costs, and dual AC units enhance both comfort and energy efficiency. With an extended length three-car garage and no HOA, this home is the perfect blend of luxury and practicality.
13144 E Lupine Avenue
Scottsdale, AZ 85259
$1,100,000
4
Beds
2.5
Baths
3,076
SqFt
Status
Active Under Contract
MLS #
6770249
Property Type
Single Family Residence
Price Type
--
Nestled in the prestigious North Scottsdale area, this home blends spacious living with thoughtful design complete with breathtaking views of the McDowell Mountains and spacious outdoor area. The elegant design begins with a grand entryway that opens up to an expansive, light-filled floor plan, complete with a generously sized primary suite that exudes comfort and sophistication. Outdoors, the meticulously designed patio is perfect for hosting gatherings or enjoying a quiet evening, featuring a built-in BBQ and large covered patio, perfect for entertaining in style. The seamless indoor-outdoor flow makes this space ideal for both relaxation and socializing. Set in a peaceful, secluded neighborhood, this residence offers the perfect balance of tranquility and convenience. Just a short stroll from beautiful parks and hiking trails, it's the ideal spot for daily walks or outdoor leisure. With a park just down the street and easy access to Rio Montana Park, Lost Dog Wash Trail, and Ancala Country Club, you'll enjoy a lifestyle of both tranquility and convenience. This home captures the best of North Scottsdale livingcomfortable, stylish, and perfectly located.
16118 E Ridgestone Drive
Fountain Hills, AZ 85268
$1,100,000
2
Beds
2.5
Baths
1,915
SqFt
Status
Active Under Contract
MLS #
6759444
Property Type
Townhouse
Price Type
--
Stunning single level home at ''The Overlook'' in prestigious FireRock Country Club. Well-designed open floor plan perfect for entertaining, featuring an elegant great room with splendid mt. views to the rear patio with a 20 foot slider door system. Indoor/outdoor living at its finest with luxury high end design choices. Spacious well-appointed kitchen overlooks the expansive great room and features a massive center island with breakfast bar. Wolf double range and hood and appliances as well as Subzero refrigerator, subway tile backsplash, and a desirable walk-in pantry. An exquisite master bedroom offers abundant light, a large walk-in closet, and marvelous master bath with spacious shower, dual-sink vanity, and beautiful finishes w/ensuite bath. Gorgeous backyard features heated jetted spool, built in BBQ, gas fireplace, TV, and synthetic grass. 12 foot ceilings. Guard gated. No stairs! 2 car garage w/ storage. Beautiful mountain views! Laundry room has sink and cabinets. Hunter Douglas automated window coverings. Solid core doors. Oversized hexagon tiles on the floor in main living room & travertine on the back patio. FireRock Country Club offers social and golf memberships and everything you could ask for and more in a club setting.
1014 E Country Gables Drive
Phoenix, AZ 85022
$1,100,000
5
Beds
4
Baths
4,302
SqFt
Status
Active Under Contract
MLS #
6756917
Property Type
Single Family Residence
Price Type
--
Beautiful dream home in the highly coveted Moon Valley mountainside neighborhood. Rare custom build and features with basement, no HOA, prime location in Phoenix and stunning views! Meticulous owners and over $250k in upgrades (see docs tab). 3 newer AC's, water heater, roof, doors, exterior paint, solid wood floors, and granite countertops throughout, the list is endless. In the back, enjoy your private screened-in porch or backyard oasis where a sparkling pool and spa await, great for entertainment or relaxation. Beautifully landscaped with a brand new drip system and RV gate. The upstairs balcony is also huge and wraps around for incredible views. Short walk to Lookout Mountain trailhead. Watch the drone video tour of this stunning home and majestic community!