Investing in a Vacation Property? Learn What You’ll Need to Have to Get A Mortgage Approved

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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4430 Bandana Court Wickenburg, AZ 85390

$1,075,500

3 Beds

2.5 Baths

2,390 SqFt

Status Active

MLS # 6757842

Property Type Single Family Residence

Price Type --

Discover the epitome of refined living in Wickenburg Ranch, Arizona's premier active adult lifestyle community. This exceptional residence offers 3 bedrooms and 2.5 bathrooms, blending elegant design with modern comforts. Step inside to find an open-concept gourmet kitchen featuring expansive granite countertops, top-of-the-line appliances, and ample prep space—perfect for culinary enthusiasts. The spacious great room, highlighted by a large sliding glass door, seamlessly connects to an inviting outdoor living area. The home's master suite is a sanctuary of tranquility, complete with a generous walk-in closet and a luxurious en-suite bath. Enjoy the serene beauty of the landscaped backyard, which boasts a heated pool and low-maintenance turf, ideal for relaxation and entertainment. Residents of Wickenburg Ranch enjoy have world-class amenities, including an 18-hole championship golf course, The Big Wick, and the fun executive par 3 course, Little Wiki. Stay active with access to state-of-the-art health and fitness clubs, and savor dining and socializing in various food and beverage establishments. Experience unparalleled luxury and an active lifestyle in this stunning homewhere every day feels like a retreat.

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27762 N 96th Drive Peoria, AZ 85383

$1,075,000

5 Beds

3.5 Baths

3,750 SqFt

Status Active

MLS # 6728033

Property Type Single Family Residence

Price Type --

GATED OASIS IN PLEASANT VALLEY ~ PEORIA! This stunning property is a sanctuary of energy efficiency and beauty in a gated community near Lake Pleasant. Nestled in a serene neighborhood, the backyard oasis features lush landscaping, a large Pebble Tec pool, full BBQ kitchen, koi pond, hot tub, and fire pit. Enjoy morning coffee on the spacious patio surrounded by nature. Inside, the remodeled kitchen boasts a gas Wolf stovetop and ovens, a Sub-Zero fridge, and quartz countertops. The home also includes solar panels, ensuring comfort while saving on utility bills. Embrace luxury and sustainability in this elegant, eco-friendly haven with RV gate. Make it yours today! SEE DOCS TAB FOR PROPERTY FEATURES LIST There are 2 Solar Systems. One will be paid off at close of escrow. one is leased at $224.00 a month and buyer will assume lease. See Property Features List in Document Section

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2610 E Nisbet Road Phoenix, AZ 85032

$1,075,000

4 Beds

4 Baths

2,243 SqFt

Status Active

MLS # 6746255

Property Type Single Family Residence

Price Type --

Amazing estate/horse property located in NE Phoenix. Located in an area of farms (neighbors sell eggs, honey, etc) yet live in middle of town! 3/3 bath main house, 1bd/1bth/kitchenette/laundry in guest house. This large horse property w/ no HOA has been nicely updated and boasts: has large diving pool, hot tub, automatic RV gate, 250sf guest house, 17433sf RV garage(40'x47.6' wide). huge panel, could be workshop! 2243 sf Home itself features an elegant entry room/living room, fresh travertine flooring, large metal entry door, gas & electric range hookup, newer AC for main house (2020), split floorplan, vaulted ceilings, new roof (2020), large, professional putting green, gorgeous built in bbq/firepit/pizza oven area, house, freshly painted!

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18618 E Poco Rio Drive Rio Verde, AZ 85263

$1,075,000

3 Beds

2.5 Baths

2,555 SqFt

Status Active

MLS # 6751430

Property Type Single Family Residence

Price Type --

This perfectly remodeled home is located on the 7th fairway of Quail Run. Has perfect views of the fairway and Four Peaks Mountains. This home is fully remodeled and move in ready. It features one of the biggest lots on a fairway. The back yard is an entertainers dream. It features 4 patios and a fire pit in the back yard and an amazing courtyard and sitting area in the front yard. This home was featured in the 2022 Garden Walk. New Roof 10/2024!

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23014 N 86th Street Scottsdale, AZ 85255

$1,075,000

3 Beds

3 Baths

2,341 SqFt

Status Active

MLS # 6758333

Property Type Townhouse

Price Type --

Located in highly desirable La Vida with community pool, park and tennis/pickleball court, this charming move-in ready home on one level is on a corner lot and offers a private gated entry, 3 bedrooms and 3 baths which includes a separate Casita and private, partially covered back patio. You will immediately feel at home in the spacious main house with numerous windows, living room with vaulted ceiling and fireplace, family room off of kitchen and separate dining area. Comfortable eat-in kitchen has granite tile countertops and stainless appliances. Main suite with access to the back patio has a large walk-in closet and bathroom with double vanity and separate tub and shower. And all is conveniently located close to shopping, dining, hiking, golf and the loop 101.

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15550 E Cholla Drive Fountain Hills, AZ 85268

$1,075,000

5 Beds

3 Baths

3,075 SqFt

Status Active

MLS # 6770086

Property Type Single Family Residence

Price Type --

Welcome to your serene retreat in the heart of Fountain Hills! This stylish 5-bed, 3-bath home with new flooring and HVAC, offers the perfect opportunity to enjoy the quiet comforts of a secluded neighborhood, while only being minutes away from local attractions. Just minutes from downtown Fountain Hills and the world-famous fountain, you'll have access to shopping, dining, and lively community events. Outdoor lovers will appreciate being just a short drive from Fountain Park, Desert Canyon Golf Club, McDowell Mountain Regional Park, Scottsdale and so much more. Whether you seek a family home or a profitable TURN KEY vacation rental, this property offers the perfect blend of relaxation, style, and convenience. Come experience the best of Fountain Hills!

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3417 E Dunlap Avenue Phoenix, AZ 85028

$1,075,000

4 Beds

2 Baths

2,323 SqFt

Status Active Under Contract

MLS # 6776212

Property Type Single Family Residence

Price Type --

Do you love the beauty of the Phoenix Mountain Preserve? Enjoy a spectacular, unobstructed view of beautiful desert wildlife from the privacy of your backyard oasis. This charming 4-bedroom home is located on a quiet north Phoenix cul-de-sac and sits on the edge of the preserve. The house could use some updating, but it has good bones, formal dining and living rooms, vaulted wood ceilings, plantation shutters. Easy access to the 51; get to the airport, ballpark, shopping, etc., in a matter of minutes. Don't miss this one.

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2833 E Los Altos Road Gilbert, AZ 85297

New

$1,075,000

4 Beds

3.5 Baths

4,152 SqFt

Status Active

MLS # 6783749

Property Type Single Family Residence

Price Type --

FANTASTIC OPPORTUNITY to purchase this BEAUTIFUL HOME in the DESIRABLE STRATLAND ESTATES LOCATION at a GREAT PRICE*ENJOY the LUXURY of this STUNNING TOLL BROTHERS HOME with WOOD FLOORS, SHUTTERS, surround sound, and design features such as RESTORATION HARDWARE LIGHTS, BEAMS, and SHIPLAP at CELING*KITCHEN has DOUBLE OVENS, GAS cooktop and LARGE PANTRY*Main home has 4 BEDS, DEN, and 2.5 bath*CASITA is PERFECT for GUESTS with sitting room/kitchenette, full bath and bedroom*OWNER SUITE is split and has GREAT WALK-IN CLOSET, SEPARATE SHOWER and SOAKING TUB at bath**EXTERIOR includes ARTIFICIAL TURF, PAVERS, and COZY COURTYARD in front as well as SRAWLING BACK YARD with LARGE COVERED PATIO and DESIGNATED SITTING AREA*DON'T WAIT to COME BY and see WHY YOU will WANT to CALL this PLACE YOUR ''HOME'

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34229 N 43rd Street Cave Creek, AZ 85331

$1,075,000

4 Beds

3 Baths

3,141 SqFt

Status Active

MLS # 6719472

Property Type Single Family Residence

Price Type --

Luxurious Golf Course Living in Dove Valley Ranch. Welcome to your dream home in the exclusive gated community. Mountain View's all the way around! Beautiful sunsets are in your future! This stunning remodel is a showcase of modern luxury and functionality. *Master bedrooms upstairs and down* *Brand new washers and dryers upstairs and down* *3 car epoxied garage* *All new hardwood flooring throughout* *New AC's* *New Roof* *Custom cabinetry* *Travertine pavers* *Plantation shutters* *New garage doors and openers* *New lighting and fixtures* *Exterior and interior paint* *New appliances* *New granite* This is the embodiment of contemporary elegance and thoughtful design. The Master Suite is unreal! Come check it out TODAY! gourmet eat-in kitchen, featuring an oversized functional island with seating for five, stainless steel appliances, and a pantry. The formal dining area and family room offer additional spaces for entertaining and relaxation. A generous bedroom with a full bathroom is conveniently located downstairs, providing flexibility and convenience for guests or multi-generational living. Upstairs, a cozy loft area makes an ideal office space. The expansive master suite is a true retreat, boasting a private balcony with stunning views, a converted bedroom that now serves as a masterful walk-in closet with custom shelving, and a luxurious full bathroom with dual sinks, a soaking tub, and a spa-like shower. Two additional bedrooms and another full bathroom complete the upper level, ensuring ample space for family and guests. The backyard is a private oasis designed for both relaxation and entertainment. A large covered patio overlooks a luxurious swimming pool with a captivating water feature. Enjoy the stunning views from every angle, whether you're lounging by the pool or hosting a summer barbecue. Experience the pinnacle of luxury living in Dove Valley Ranch, where every detail is designed to enhance your lifestyle. Welcome home!

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7005 W Meadowbrook Drive San Tan Valley, AZ 85144

$1,075,000

3 Beds

2 Baths

2,411 SqFt

Status Active

MLS # 6720069

Property Type Single Family Residence

Price Type --

EVERY HORSE LOVERS PARDISE! Don't miss the chance to make this mountain-view retreat your own! Experience the perfect blend of modern comfort and rural charm with this stunning 3-bedroom, 2-bathroom home on a 1.25-acre lot with breathtaking mountain views and NO HOA restrictions. Featuring an open-concept layout, the home boasts a spacious living area filled with natural light, a gourmet kitchen with stainless steel appliances, and a luxurious master suite. Outside, you'll find an expansive yard, a well-maintained 4 stall horse barn with turn out pens, and a three-car garage. Brand NEW H20 home water system! Never had a utility power over $250 due to Intergra Insulated Block built construction.

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3216 E Orange Drive Phoenix, AZ 85018

$1,075,000

3 Beds

2 Baths

1,580 SqFt

Status Active

MLS # 6739869

Property Type Single Family Residence

Price Type --

PRICE REDUCTION This charming home is located in the Biltmore corridor(North of Camelback road) on an extra large cul de sac lot with a backyard large enough for an addition. Dual pane windows, recessed lighting, maple wood flooring through-out and many upgrades makes for the perfect home for year-round residence or winter visitor. Located near the best restaurants, shopping, hiking, biking and walking trails Your clients won't be disappointed. LOCATION LOCATION LOCATION

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4551 N 52nd Place Phoenix, AZ 85018

$1,075,000

3 Beds

2.5 Baths

2,937 SqFt

Status Active

MLS # 6743328

Property Type Single Family Residence

Price Type --

SELLER FINANCE OR Lease Purchase Available!! A fantastic 3 bed, 2.5 bath townhome in La Montana is now for sale! Featuring 2 garage spaces, artificial turf, and a cozy courtyard! Inside you will find spacious dining & living areas w/soaring ceilings, elegant wood-look flooring, a warm fireplace, and a wet bar perfect for entertaining guests. Prepare delicious meals in this gorgeous kitchen, equipped w/ample cabinetry, quartz counters, tile backsplash, recessed lighting, stainless steel appliances, and a prep island. The grand primary suite features plantation shutters, a walk-in closet, and a full bath w/dual sinks. Also including a quaint backyard patio where you can sit back and enjoy a relaxing evening, this is sure to be the home you've been looking for!

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