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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7175 E Camelback Road Unit 107
Scottsdale, AZ 85251
$1,099,900
2
Beds
2.5
Baths
1,243
SqFt
Status
Active
MLS #
6751818
Property Type
Apartment
Price Type
--
Nestled in the heart of Scottsdale's lively community, this exquisite ground-floor condo at the Scottsdale Waterfront Residences offers a rare find. With 2 bedrooms, 2.5 baths, and stunning views of the tranquil canal and lush park, this residence combines luxury with comfort. The bright, open living space is enhanced by elegant Lutron lighting and crown molding. The gourmet kitchen is a chef's dream, featuring high-end appliances and top-notch finishes. Included are two dedicated garage parking spaces and a spacious storage room. Residents enjoy exceptional amenities, including 24-hour security, a rooftop pool, a stylish resident club room, a wine cellar, a premier fitness center, and valet parking. All this is just moments away from world-class dining, upscale shopping, and more!
6519 N 173rd Drive
Waddell, AZ 85355
$1,099,900
4
Beds
3.5
Baths
3,160
SqFt
Status
Active
MLS #
6737635
Property Type
Single Family Residence
Price Type
--
Looking for a peaceful retreat? This magnificent corner-lot property on a tranquil cul-de-sac awaits new owners! With excellent curb appeal, it features a desert landscape, a spacious 3-car garage, an extended driveway, a private courtyard, and striking stone detailing. The impeccably updated interior welcomes you with a lovely foyer, graceful archways, plantation shutters, beautiful wood-plank tile flooring, and decorative light fixtures. The formal living and dining rooms boast coffered ceilings and bay windows for easy entertaining. The spacious family room, adorned with a stone wall fireplace and Parquet flooring, seamlessly connects to the kitchen. Meticulous attention to detail is presented in the stunning kitchen, fully equipped with an electric cooktop, a wine cooler, wall ovens granite counters, a mosaic tile backsplash, recessed and pendant lighting, a breakfast bar, and a prep island. Alluring cherry wood cabinetry with crown molding and a walk-in pantry provide ample storage space. The grand main suite is a true sanctuary, highlighting a double-door entry, tray ceilings, vanity spaces, a sitting area, outdoor access, and a full ensuite with a jetted tub, dual sinks, and a walk-in closet. Secondary bedrooms also enjoy their own bathrooms, including a Jack and Jill bathroom. Escape to the backyard paradise that invites you to unwind with a covered patio, a ramada, a fire pit, a grassy lawn, and a refreshing pool. Don't miss the opportunity to own this exquisite home - it's a perfect blend of elegance and comfort, ready for you to make it your own!
84 E Joseph Way
Gilbert, AZ 85295
$1,099,900
6
Beds
4
Baths
4,008
SqFt
Status
Active
MLS #
6732689
Property Type
Single Family Residence
Price Type
--
THIS IS AN INCREDIBLE OPPORTUNITY!! This 6-bed/3.75-bath, spanning 4,006 square feet, on close to a .25 acre lot. Whether you see yourself enjoying $150,000 upgrades on the inside or enjoying the resort style backyard with a pool that features a water slide, hot tub and multiple waterfalls, this house is turn key for both a new occupant and/or an investor. RV Gate, 3 Car Tandem Garage, Too many upgrades to list. You have to see it.
25819 S 227th Way
Queen Creek, AZ 85142
$1,099,800
4
Beds
3.5
Baths
3,564
SqFt
Status
Active
MLS #
6746370
Property Type
Single Family Residence
Price Type
--
**Location, location, location!** This luxurious property is a rare gem, ideally situated across the street from extraordinary amenities, including a serene lake, charming Ramada, refreshing pool, vibrant splash pad, and expansive playground. The views are absolutely breathtaking! This home is truly one-of-a-kind, offering elegance and sophistication that rivals even the most exclusive properties. Appointed with some of the finest finishes available, this residence features an exceptional layout that includes a stunning hidden pantry and a primary suite closet that is an organizer's dream. Step inside to experience an exquisite open floor plan that flows seamlessly throughout with 4 bedrooms, 3.5 bathrooms, & a bonus flex room making it the perfect home for both living and entertaining! The kitchen is a chef's paradise, boasting an etched marble backsplash, complementary two-tone cabinets, and a magnificent 12-foot island - a family gathering oasis. Illuminated cabinet toppers highlight the elegant lighting and a generous gas stove, while the cabinet lighting in the bathrooms adds a touch of luxury and functionality. The divine split floor plan ensures ultimate privacy and convenience for both families and guests. The spacious master suite offers a sumptuous bathroom with a luxurious shower and spectacular views from the windows. Every bedroom boasts its own en-suite bathroom, providing unparalleled comfort and convenience. Entirely designed for ease and beauty, the home features real wood flooring that is both soft underfoot and easy to maintain. The incredible storage solutions, with numerous cupboards and closets, make organizing effortless. Bask in the serene backyard, complete with a cozy gas fireplace and a pergola, perfect for outdoor entertaining. The wall slide door seamlessly extends the great room into the backyard, creating a unique indoor-outdoor living space that enhances the home's inviting ambiance. The neighborhood itself is a delightful mix of friendly energy and privacy, with unobstructed sky views and no two-story homes nearby. The front and backyards are turnkey and low-maintenance, designed with pavers and beautiful grass, with room left for future customization like adding a pool. Don't just take our word for it - this exquisite home needs to be experienced in person to truly appreciate its luxury and charm. Check the documents section of the MLS for a comprehensive list of upgrades, and the things our sellers will miss the most about this exceptional property. Don't miss out on this unparalleled opportunity!
1296 E Coconino Way
Gilbert, AZ 85298
$1,099,789
4
Beds
3.5
Baths
2,951
SqFt
Status
Active
MLS #
6781346
Property Type
Single Family Residence
Price Type
--
Come see this beautiful, new, 1-story home with Farmhouse exterior located in Avocet at Waterston Central. Enjoy cooking in the kitchen equipped with a 36'' gas cooktop, double wall oven, built-in microwave, Bryant maple buckskin cabinets with stacked uppers, custom backsplash, and quartz countertops. Other outstanding features include a frameless walk-in shower with Raincan shower head at the primary bath, an extended primary suite, farmhouse iron door at the front entry, wood look tile flooring, upgraded carpet, laundry sink with base cabinets, pavers at the driveway, champagne bronze plumbing and lighting fixtures and so much more.
100 W Northern Avenue Unit 1
Phoenix, AZ 85021
$1,099,500
3
Beds
2.5
Baths
2,276
SqFt
Status
Active
MLS #
6737165
Property Type
Single Family Residence
Price Type
--
Welcome to 100 Northern! Nestled in the prime location of North Central Phoenix, this gated, NEW, unique community features 3 different floor plans and just 17 homesites - with only 6 lots remaining for this single level ''D'' plan. Experience the elegant sophistication and uncluttered feel of these thoughtful, light flooded designs, where soaring ceilings, sleek lines, and open spaces all converge to evoke a true sense of serene ambiance throughout the home. This spacious and open great room plan features 3 bedrooms, 2.5 baths, and 2 car garage. Subzero/Wolf appliances, Trane Ac units, and tankless water heaters all set the standard for the list of included high-end features. cont... Heated community pool, dog park and walking path all provide the outdoor enjoyment without the upkeep, cost and work of maintaining your own. Come and claim your new address at 100 Northern, the epitome of modern luxury living.
4434 N Golf Drive
Buckeye, AZ 85396
$1,099,500
5
Beds
3.5
Baths
4,395
SqFt
Status
Active
MLS #
6716773
Property Type
Single Family Residence
Price Type
--
Discover your dream home in the sought-after Verrado community! This spacious residence, situated on a large corner lot, boasts 5 bedrooms, 3.5 bathrooms, and a refreshing pool, perfectly designed for luxury and comfort. The home offers ample outdoor space and features shutters throughout for privacy and elegance. The gourmet kitchen is equipped with granite countertops, abundant counter space, a butler's pantry, and a soft water loop. Entertainment is a breeze with the home pre-wired for surround sound and an intercom system. The luxurious primary suite includes a large bathroom with a walk-in shower, rain shower head, and bench, along with built-in cabinets in the closet. The thoughtful split floor plan ensures privacy, with plank tile flooring and two-tone paint throughout. Family convenience is enhanced by a Jack and Jill bathroom upstairs and a built-in desk in a cozy office area. Each bedroom features a walk-in closet, providing plenty of storage space. Enjoy the comfort of ease with quick access to stores, retail, and the freeway. Don't miss this opportunity to own a meticulously designed home in the vibrant Verrado community, where luxury meets functionality.
10683 E Saddle Blanket Trail
Gold Canyon, AZ 85118
$1,099,500
3
Beds
2.5
Baths
2,666
SqFt
Status
Active
MLS #
6762468
Property Type
Single Family Residence
Price Type
--
Gorgeous Custom Home in the Quiet Gated Community of Mountain Whisper! Everything You Would Expect - Open Floor Plan; Great Room w/Gas Fireplace; Beautiful Spacious Kitchen; 20-inch Tile Flooring; Plantation Wood Shutters throughout; Custom Scrolled Iron Entry; Spa-Like Master bath; Professional Landscape; Pebble-Tech Pool and Spa with Baja Step and Rock Waterfall; Cabana with Built-In Grill and Bar; Lg Alumawood Pergola Covered Patio; Side Courtyard Patio w/Superstition Mts Views; Plus 4 car Garage for all your toys. Close to golf courses, Sonoran Desert Sunsets and hiking in the Superstition Mountains.
100 W Northern Avenue Unit 17
Phoenix, AZ 85021
$1,099,500
3
Beds
2.5
Baths
2,276
SqFt
Status
Active
MLS #
6768237
Property Type
Single Family Residence
Price Type
--
Welcome to 100 Northern! Nestled in the prime location of North Central Phoenix, this gated, NEW, unique community features 3 different floor plans and just 17 homesites - with only 6 lots remaining for this single level ''D'' plan. Experience the elegant sophistication and uncluttered feel of these thoughtful, light flooded designs, where soaring ceilings, sleek lines, and open spaces all converge to evoke a true sense of serene ambiance throughout the home. This spacious and open great room plan features 3 bedrooms, 2.5 baths, and 2 car garage. Subzero/Wolf appliances, Trane Ac units, and tankless water heaters all set the standard for the list of included high-end features. Heated community pool, dog park and walking path all provide the outdoor enjoyment without the upkeep.
18830 E White Wing Drive
Rio Verde, AZ 85263
$1,099,000
2
Beds
2.5
Baths
3,140
SqFt
Status
Active
MLS #
6769568
Property Type
Single Family Residence
Price Type
--
Well built custom Southwest style home on the golf course in Rio Verde. Views to the NE mountains. Formal and Casual Dining. Built in wetbar in great room. Spacious Primary Suite with access to patio and private inground hot tub, bath w/dual vanities and separate closets. Ensuite Guest room on opposite side of the home with front courtyard access. Cozy den/office with niches. Kitchen has plenty of storage, large island with cooktop, Subzero fridge. Sitting area by fireplace adjoins kitchen. Covered back patio and plenty of space to entertain. Beautiful carved solid wood front door and interior doors are ruff hewn solid wood. Flagstone flooring all around except for hardwood in primary suite. 2 car plus golf cart garage. Come and see this special home bordering White Wing #2!
1829 W Aloe Vera Drive
Phoenix, AZ 85085
$1,099,000
4
Beds
3.5
Baths
3,078
SqFt
Status
Active
MLS #
6744764
Property Type
Single Family Residence
Price Type
--
Extraordinary opportunity to own in the gated community of Desert Vistas at Sonoran Foothills. Entertaining made easy with this premium lot location, no rear neighbors & oversized 14,000 sf lot with a private pool, built-in BBQ, firepit, RV gate, & side yards larger than most parks. Home features an open great room concept with custom media wall, chef's kitchen, Sub-Zero fridge/freezer combo, gas range, & oversized kitchen island with ample space for all your closest friends. The primary bedroom is secluded and split from the remaining bedrooms & features his/her closets while the secondary master suite has a private bath & is a perfect mother-in-law quarters, game room, or man cave. Year-round amenities, community pool, club house, tennis/pickleball courts, dog park & splash Pad.
1542 W Maddock Road
Phoenix, AZ 85086
$1,099,000
4
Beds
3
Baths
2,604
SqFt
Status
Active
MLS #
6763347
Property Type
Single Family Residence
Price Type
--
Located on just over an acre of land, this 4-bed, 3-bath, single-story home offers approx. 2,604 square feet of living space. Built in 2008, the property includes a large 4-car garage, room for RV parking, and is ideal for equine enthusiasts. The expansive lot provides endless possibilities! Inside, the open kitchen, featuring quartz countertops, is perfect for entertaining. Quartz counters are found in the kitchen & bathrooms. Situated in Desert Hills, the home is centrally located in The Valley, with convenient access to restaurants, retail shopping, and healthcare. Additionally, there are 2.7 acres for sale next door for someone interested in building an arena or just having MLS 6763416!