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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1187 E Tonto Drive
Chandler, AZ 85249
$1,075,000
5
Beds
3.5
Baths
4,139
SqFt
Status
Active
MLS #
6748253
Property Type
Single Family Residence
Price Type
--
In Alamosa Estates a Stunning Luxury Single Story Basement Home by Fulton. Updated into a Luxurious haven with many Amenities. New Carpet and Flooring, New Int/Exp Paint. Split Floor Plan: Main Floor has Formal Living Room; Gourmet Kitchen (Quartz Counter Tops; All New Appliances to include Dual Ovens; Gas Stove; Island Design w/Breakfast Bar; Family and Dining Area with Entertainment in Mind. Master Bedroom is Spacious; Master Bath Upgraded with new Counter Top, Dual Sinks, Walk in Shower, Custom Closet. Two Bedrooms located just off Kitchen w/Full Bath and Dual Sinks; Laundry Room is Large w/Storage, 2nd Refrigerator, Gas/Electric Dryer Hookup. Basement: Great Room w/Wet Bar,Refrige,Two Bedrooms, Full Bath ,Dual Sinks. 3 Car Garage. Ramada: Built in BBQ , Fire Pit, SPA Hookup.
8219 N 3rd Avenue
Phoenix, AZ 85021
$1,075,000
4
Beds
2
Baths
2,774
SqFt
Status
Active
MLS #
6753848
Property Type
Single Family Residence
Price Type
--
Discover your dream home in North Central! This charming family residence features 4 spacious bedrooms, perfect for growing families or those who love extra space. Enjoy the convenience of a 2-car garage and the luxury of a brand-new pool, ideal for relaxing or entertaining. The open layout and modern finishes create a welcoming atmosphere, while the backyard oasis invites outdoor fun and relaxation. Located in a sought-after neighborhood, this home offers both comfort and style, making it the perfect retreat for you and your loved ones. Don't miss out on this fantastic opportunity!
38332 N 25th Avenue
Phoenix, AZ 85086
$1,075,000
3
Beds
2
Baths
2,284
SqFt
Status
Active
MLS #
6768117
Property Type
Single Family Residence
Price Type
--
This custom-built home with HORSE property privileges is a true gem, designed with attention to detail by its original owner. Situated on a sprawling 2.5-acre lot, the property offers complete privacy, making it a perfect retreat. Going up the spiral staircase balcony wraps around the exterior, providing 360-degree views of the surrounding mountains, ideal for relaxing or entertaining while enjoying the scenery. The home features an open floor plan, blending living, dining, and kitchen areas to create a spacious entertaining area. The interiors showcase the warmth of natural colors, including beautiful Alder knot doors and Alder cabinetry throughout the kitchen and bathrooms, adding a touch of rustic charm. High 10-foot ceilings throughout the home enhance the sense of openness, with recessed lighting to provide an ambiance in every room. For vehicle enthusiasts, the property is equipped with an 8-foot garage door leading into a generous 6-car garage, perfect for cars or a workshop space. The detached four-car garage offers extra room for recreational vehicles or other toys. The primary suite includes a five-piece bathroom, complete with a large soaking tub, a walk-in shower, dual vanities, and ample storage space. The split floor plan ensures that the primary suite remains private and separate from the other bedrooms. The home is designed to maximize comfort and convenience, blending luxury with practicality, all while offering unparalleled privacy amidst its natural surroundings. 2.5 acre lots in the area are hard to come by. Time for you to see it!
9242 E Desert View
Scottsdale, AZ 85255
$1,075,000
3
Beds
2
Baths
1,740
SqFt
Status
Active Under Contract
MLS #
6770615
Property Type
Single Family Residence
Price Type
--
This perfect turn key home sits on an interior north/south lot in theParks & Manor Homes at DC Ranch. Ideal single family floorpan w/split 3 bedrooms, 2 baths, + a large kitchen & great room w/high ceilings. Upgrades everywhere including oak hardwood floors, plantation shutters, custom light fixtures, quartz counters, SS appliances, farmhouse sink, & raised panel cabinetry. Large master suite w/marble floors & counters, w-in closet, & free standing tub. Secondary bedroom has direct access to 2nd full bath + office w/separate access to courtyard. Back yard features covered patio w/ Built-in BBQ, a 2nd Gas Fireplace, travertine pavers, & artificial turf yard area. This home needs nothing, is priced to sell, & DC Ranch features 2 comm. centers + great access to shopping/dining/101 freeway
8207 E Mackenzie Drive
Scottsdale, AZ 85251
$1,075,000
5
Beds
3
Baths
2,220
SqFt
Status
Active Under Contract
MLS #
6775094
Property Type
Single Family Residence
Price Type
--
You don't want to miss this stunning, fully remodeled home in the heart of Old Town Scottsdale—priced under $1 million for a quick sale! Every inch has been updated, from the new roof and plumbing to the fixtures, making it feel brand new. Rare to find - 2 primary suites! The modern design features high-end finishes throughout, from the gourmet kitchen to the elegant living spaces. The resort-style backyard is perfect for entertaining, complete with a brand-new gas heated pool, outdoor kitchen, lush landscaping, and an oversized covered patio. Brad new roof, HVAC system, ductwork, foam insulation, tankless water heater, water softener, reverse osmosis, plumbing, electrical. It is just like you are in a new build. Contemporary interior with designer fixtures makes this home a showpiece. Ideal location and luxury living all in one! Just a stroll away from the Scottsdale stadium, home to the SF Giants, Old Town's vibrant entertainment, fine dining, shopping, museums, parks, and top-rated school
2 E Canterbury Court
Phoenix, AZ 85022
$1,075,000
5
Beds
2.5
Baths
2,876
SqFt
Status
Active
MLS #
6784196
Property Type
Single Family Residence
Price Type
--
Discover your perfect home in the highly sought-after Moon Valley neighborhood of North Phoenix! Nestled at 2 E Canterbury Ct, this stunning property offers not only a beautiful, fully remodeled home but also the opportunity to enjoy the peace and tranquility of one of Phoenix's most desirable areas. Whether you're looking for a quiet retreat or a family-friendly community with abundant outdoor activities, this home has it all. Inside you will find a designer kitchen including an oversized gas stove, Venetian plaster hood range, custom cabinetry, un-lacquered brass handles and faucet, walk-in pantry and so much more! The primary bath boasts a large freestanding tub and spa-like walk in shower. The mudroom is the perfect drop zone for everything so the house stays nice and clean. The 5th bedroom can be used for an office, guest room, hobby room or whatever your heart desires. The house sits on a large, corner lot over 1/4 acre and comes with a newly remodeled pool and maintenance free landscaping. Not to mention, all the work in the home was fully permitted and used a licensed contractor. For those who enjoy golf, the Moon Valley Country Club is right around the corner. With its lush fairways and a variety of social events, it's a perfect spot for relaxing and meeting neighbors. Moon Valley provides a peaceful suburban atmosphere while being just a short drive from major shopping areas like Desert Ridge Marketplace and Paradise Valley Mall. Enjoy easy access to dining, shopping, and entertainment, as well as quick commutes to downtown Phoenix, Scottsdale, and other popular Valley destinations. Moon Valley is not just a place to live; it's a place to thrive. With a close-knit neighborhood, regular community events, and a friendly atmosphere, you'll feel right at home from day one. Don't miss your chance to own this beautiful home in the heart of Moon Valley. Book your private tour today!
6963 W Aurora Drive
Glendale, AZ 85308
$1,075,000
6
Beds
4.5
Baths
3,953
SqFt
Status
Active
MLS #
6681725
Property Type
Single Family Residence
Price Type
--
Experience the Pinnacle of Living in Sierra Verde Estates. Discover Arizona elegance and comfort in this semi-custom Jackson Properties build home, nestled in the prestigious Sierra Verde Estates of Glendale. This property is designed to cater to buyers seeking an unparalleled living experience. With original owners, this home has been meticulously cared for and crafted to blend luxury, functionality, and an active lifestyle. PROPERTY FEATURES: Spanning 6 bedrooms and 4.5 bathrooms, including three en-suites, this residence offers expansive living options. The layout includes the highly sought-after first-floor suite with a walk-in closet and linen closet. The first floor boasts of three walk-in closets, ensuring generous storage solutions. The oversized primary suite is a testament to the masterful design, boasting dual sinks, a vast walk-in closet, separate toilet room, and a linen closet, ensuring functionality and comfort. Custom touches throughout such as bay windows in the kitchen and a third en-suite bedroom. Speaker wiring in the dining room and primary suite, the extended covered patio and the convenience of a laundry chute from the second floor into the massive laundry room. At the property's heart, the kitchen, bay windows overlook the oversized lot, complete with a pool, spa, built in gas grill, with built in ice chest, outdoor sink, gas fire pit, herb garden, mature citrus trees, generous grass area and paved entertaining spaces, perfect for hosting gatherings! Premier upgrades including big tickets items like; AC units replaced in 2013, 4.5 inch custom shutters throughout, a new roof in 2020 (includes a 10-year warranty), exterior paint in 2021, and exterior landscaping upgrades including remodeling pool to add pebble tech in 2007, this home is ready for you to move in! Check out the full upgrades list in the documents tab. Positioned directly in front of the community green belt, residents enjoy immediate access to volleyball courts, playgrounds, walking paths, and a serene lake, encapsulating the essence of an active and peace-filled lifestyle. LOCATION ADVANTAGE: Strategic proximity is displayed with the accessibility to all your necessities and community amenities. Located within 30 minutes of major sports facilities and just 25 minutes from Downtown Phoenix, this home is a hub for entertainment and urban convenience. TSMC within 20 minutes further underscores the strategic location for professionals. This Sierra Verde Estates masterpiece is not just a home; it's a lifestyle. With its thoughtful design, custom enhancements, and prime location, this home invites you to embark on a living experience defined by boundless opportunities. Seize the opportunity to make this exceptional property your own!
3884 S Mingus Drive
Chandler, AZ 85286
$1,075,000
5
Beds
4.5
Baths
3,424
SqFt
Status
Active
MLS #
6773258
Property Type
Single Family Residence
Price Type
--
Come explore this beautiful 5 bed, 4.5 bath home plus office in the private, gated community of Cantabria in south Chandler. This 3,424 sqft home features an open floor plan with a large kitchen island, granite counters, stainless steel appliances, and a 5-burner gas range. The primary suite offers dual vanities, a walk-in shower, and a huge walk-in closet. Two bedrooms have en-suite baths, while bedrooms 4 and 5 share a Jack and Jill bath. Additional highlights include a spacious walk-in pantry, crown molding, wood ceiling accents, 12+ ft ceilings, new heat-blocking solar screens on all windows, and like-new condition as it's been lightly lived in by the original owner. Conveniently located near shopping, restaurants, and just 3 miles from the 202 freeway. Don't miss out!
3100 E Oak Hill Drive
Prescott, AZ 86303
$1,074,999
4
Beds
3
Baths
2,490
SqFt
Status
Active
MLS #
6778884
Property Type
Single Family Residence
Price Type
--
Here it is, the perfect retreat you've been searching for! Nestled in the pines and surrounded by countless trails, this stunning property is just under 20 minutes from downtown Prescott. It's a dream for entertainers, featuring a spacious kitchen and an outdoor deck equipped with a fireplace, built-in BBQ, and sink. Unwind and appreciate the local wildlife while enjoying luxurious living. The wonderful primary suite is conveniently located on the main level, while guests will love the downstairs quarters complete with their own living room with built in wet bar and fireplace. There's also an additional loft or game room above the garage. Don't miss out on this incredible opportunity!
7280 W Electra Lane
Peoria, AZ 85383
$1,074,900
4
Beds
3.5
Baths
4,361
SqFt
Status
Active
MLS #
6746612
Property Type
Single Family Residence
Price Type
--
Beautiful 4 bedroom + loft + office + game room, 3.5 baths, 4,361 square foot home with a 4 car garage, oversized lot located in the highly sought after Northern Peoria gated community of Talas! Gourmet kitchen features a large island with granite countertops, gas cooking, stainless steel appliances, butler's pantry with direct access to formal dining room, large family room opens to massive backyard, sport court, fire pit and concrete pad ready for your gazebo or pergola, large master suite includes, dual vanities, separate tub & shower, water closet, custom shelves in massive walk-in closet, with access to a large backyard facing balcony. Ample space in the 3 secondary bedrooms, upstairs game room/media room with access to the frontyard facing balcony, large laundry room with sink and cabinets, 220 outlet in the garage, plantation shutters, AC condensing units replaced in 2019, north/south exposure lot located on the end of the cul de sac, large side yard for all of your toys and storage, close to the 101 freeway, shopping, entertainment, Peoria Sports Complex, see this home today!
2502 E Pine Island Lane
Payson, AZ 85541
$1,074,000
4
Beds
4
Baths
3,184
SqFt
Status
Active
MLS #
6739048
Property Type
Single Family Residence
Price Type
--
This is a perfect home for a large family or hosting guests providing them their own space. This home in the Pine Island section of Chaparral Pines boasts 4 bedrooms, 4 full bathrooms with two family rooms. It also features two decks overlooking the active water features adding to the serenity and peaceful evenings after a wonderful day of hiking or golf. Close to the amenities makes it easy to enjoy the Clubhouse and Fitness areas for the entire family. Whether you're looking to escape the city on the weekends or making it your full-time residence, this is one to come see.
13450 W Domino Drive
Peoria, AZ 85383
$1,070,000
3
Beds
3.5
Baths
2,660
SqFt
Status
Active
MLS #
6762840
Property Type
Single Family Residence
Price Type
--
Welcome to Trilogy at Vistancia, a 55+ Gated Community in North Peoria. Meet Shea Home's most popular model, the Rhythmic. 2660 sq. ft of interior living space, 3 BED + OFFICE + CRAFT ROOM + 3.5 BATH + 3 CAR Garage, plus a luxurious backyard to help you relax and embrace Arizona's year-round climate and our outdoor lifestyle. Open concept main living area with dramatic cross beams and tray ceilings, stunning double-sided stone gas fireplace, natural wood-look tile throughout, light crisp color pallet with white trim, doors and wood shutters. 2 separate, 4-panel sliding patio doors allow plenty of natural light, connecting your indoor and outdoor living spaces. Open concept kitchen and dining area, features upgraded light gray cabinetry, waterfall edge Quartz countertops, glossy subway tile backsplash, stainless steel appliance package and hood, plus a pantry for all your storage needs. Step into your master suite, light and bright with access to your private backyard. Full Master Bath features farmhouse-style doors, double sinks, a soaking tub, a large tiled shower with seating, and a spacious master closet. With 2 additional bedroom, 2 bathrooms, a craft room, a powder room, plus an elegant office with custom built-ins and a stone fireplace, this upgraded Rhythmic Model provides you with all the space and functionality you'll ever need. Step out back and take a deep breath, large L-shape covered patio provides the perfect retreat or entertainment space and features mechanical shades on the west side for additional shade and privacy. Classic travertine tile pavers with turf in-between design, calming wall water fountain, outdoor kitchen with serving area, and large ambient stone fireplace all against the backdrop of the Sonoran Desert skyline. There truly is nothing to do except move in and live your absolute best life. Neighborhood mountain views, close proximity to 303 freeway access, 20 minutes to TSMC, shopping, dining, entertainment, health care, and less than 35 min. away from beautiful Lake Pleasant Regional Park.