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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1667 N Circle Drive Tempe, AZ 85288

$849,000
2 Beds
2.5 Baths
1,845 SqFt
Status Active
MLS # 6776306
Property Type Single Family Residence
Price Type --
This exceptional home has literally been transformed from the ground up and is essentially a brand new home! Completely taken down to the studs, every component has been updated and replaced, including all new plumbing and electrical, wall and attic insulation, roof with new sheathing, windows, doors, and drywall. Even the pool has been fully remodeled, featuring new pebble tec, tile, cool decking, and brand new variable speed equipment. Inside, you'll find beautiful designer finishes and luxurious upgrades throughout, with eye catching bathrooms, porcelain wood-look tile, shaker style cabinets with crown molding, gorgeous quart counters and GE appliances. Additional features include a newly installed paver driveway, spacious 2-car garage, convenient indoor laundry, and fresh landscaping This remodel was meticulously designed by an architect, fully permitted, and completed by licensed contractors. Ideal as a primary residence or a fabulous short-term rental opportunity. This beautiful new home is a must see!

2374 W Weatherby Way Chandler, AZ 85286

$849,000
4 Beds
2.5 Baths
2,954 SqFt
Status Active Under Contract
MLS # 6780325
Property Type Single Family Residence
Price Type --
Now is your opportunity to own this impeccably maintained property that has been lovingly cared for by the original owners. Located in the desirable Brittany Heights community and perfectly situated on a 10,000 square foot lot with a north facing backyard! A single level home featuring a split floor plan with 4 bedrooms and 2.5 baths. As you enter, you'll be greeted by a bright and airy formal living room, which flows seamlessly into the formal dining room — perfect for hosting dinners or gatherings. The open-concept layout enhances the sense of space, with large windows allowing plenty of natural light to flood the interior. The kitchen is a true highlight, having been fully updated with modern finishes, stainless steel appliances, and ample counter space. Crisp white custom cabinets with pullout shelving, paired perfectly with granite counters and stone backsplash. The sleek hardware and updated lighting pull it all together. A dedicated pantry along with the GAS range will appeal to all the chefs out there! The eat-in kitchen opens to the great room making it ideal for entertaining or comfortable daily living. Another standout feature is the custom gas fireplace, which serves as both a functional centerpiece and a stunning design element. The primary bedroom offers a peaceful space after a long day. The primary bath is a true spa-like retreat, designed to offer a luxurious and serene experience. As you step inside, you're immediately enveloped by a calming atmosphere, where you will find high-end finishes, and thoughtful design elements to include this spectacular walk-in shower and custom designed closet. The home offers 3 additional bedrooms along with a full bathroom and powder room! Even the laundry room is a stand out! You will find an abundance of cabinetry and a nice counter space for folding. The 3-car garage offers a 4 foot extension! On the weekends you will spend your time in your private backyard relaxing under the covered patio or floating in your fenced heated pool. The hot tub provides the ultimate place to relax and recharge. The desert landscaping has been thoughtfully designed to complement the natural beauty of the Arizona desert to include artificial turf! But wait.. there is more! Both HVAC units (with 2-stage straight cool condenser) were replaced in 2019. You will also find notable upgrades such as planation shutters, hand-scraped wood flooring, upgraded baseboards and crown molding... the list goes on and on! Brittany Heights is a community in the heart of Chandler close to shopping, dining, and easy freeway access. Top ranked Chandler Schools and Hamilton High School are an added bonus! Homes of this caliber are not found often.. come see for yourself!

17197 W Thousand Oaks Street Surprise, AZ 85388

$849,000
2 Beds
2.5 Baths
2,444 SqFt
Status Active
MLS # 6784776
Property Type Single Family Residence
Price Type --
This ''Davidson'' model has it all: Oversized covered patio, interior atrium, corner lot, North-South exposure, sunsets, and PEEKABOO mountain views! The open-concept kitchen flows effortlessly into the great room and dining room, making this floor plan ideal for entertaining. The split floor plan offers a second bedroom with privacy and an en suite bathroom. The home is located next to a greenway and getting in and out of the neighborhood is effortless.

1321 N Bronco Court Gilbert, AZ 85233

$848,000
5 Beds
3 Baths
3,343 SqFt
Status Active
MLS # 6766484
Property Type Single Family Residence
Price Type --
Welcome to your dream home in beautiful Gilbert, Arizona only three miles from downtown! This stunning home, includes 5 large bedroom, 3-bathroom and is a rare find, boasting a unique split-level floor plan with a spacious finished basement, offering both style and functionality. Situated on a private cul-de-sac lot, this property exudes charm and curb appeal from the moment you arrive. Step inside to discover freshly painted interiors, creating a bright and inviting atmosphere throughout. The brand-new plush living room carpet underfoot provides a touch of luxury. The newly remodeled kitchen cabinets add a modern touch, beautifully complementing the open kitchen design where the kitchen is the heart of the home and ideal for the home chef and entertaining guests. For those who value storage and convenience, the garage is equipped with custom cabinets and gleaming epoxy flooring; a perfect space for keeping everything organized and spotless. The backyard is a true oasis! Enjoy the sparkling saltwater pool and relaxing spa, and lush artificial turf for easy maintenance and year-round greenery. This serene retreat offers ample space for gatherings, barbecues, or simply unwinding in your own slice of paradise. Pride of ownership shines throughout this meticulously maintained home. With its prime Gilbert location, top-notch upgrades, and beautiful outdoor living space, this gem won't last long. Don't miss the chance to call this exceptional property your new home! Schedule your showing today!

38500 N School House Road Unit 5 Cave Creek, AZ 85331

$847,500
3 Beds
3 Baths
2,113 SqFt
Status Active
MLS # 6752405
Property Type Single Family Residence
Price Type --
Experience resort-style living in the heart of Cave Creek with this stunning 3-bedroom, 3-bathroom home. Perfectly situated within walking distance to the vibrant town center, you'll have easy access to a variety of restaurants, shopping, and entertainment options. This home features an open floor plan with soaring ceilings, granite countertops, tile and carpet flooring, and new appliances. Enjoy the outdoors on your patio with a fireplace, just steps from the community pool. The community is rich with amenities, including a heated pool and spa, BBQ pavilion, fire pit, pickleball court, fitness center, and a dog park. This move-in ready home offers the perfect blend of luxury, convenience, and scenic beauty, making it an ideal retreat in one of Cave Creek's most sought-after locations.

10829 N 11th Place Phoenix, AZ 85020

$847,000
5 Beds
3 Baths
2,600 SqFt
Status Active
MLS # 6755698
Property Type Single Family Residence
Price Type --
Welcome to El Castillo, an extraordinary residence located on a tranquil street, with breathtaking North Mountain Park views, this meticulously maintained home blends comfort, luxury, and nature. With 2,600 square feet of living space, security monitored 24/7 and surround sound, this home is perfect for families and entertainers alike. This home also boasts five spacious bedrooms and three bathrooms, including a convenient first-floor bedroom and full bath, this home provides flexibility for guests, a home office, or multi-generational living. At the center of this home is a beautifully updated gourmet kitchen (2016), complete with a top-of-the-line Dacor gas range, double ovens, sleek granite countertops, and a spacious walk-in pantry. The open layout effortlessly connects the kitchen to the great room, making it the ideal spot for entertaining or enjoying family time. Upstairs, an expansive loft offers additional room for relaxation or fun. The primary suite is a peaceful haven, boasting dual vanities and a luxurious dual-head shower. Outside, the backyard is a true retreat, with a sparkling pool, spa, and lush landscaping with a brand new irrigation system (2023). All this, framed by stunning mountain views. The recently refreshed exterior and interior paint add to the home's pristine condition, while the firepit provides a cozy ambiance for fall and winter nights. Located near the North Mountain Park hiking trails, this home offers a rare balance between natural beauty and city conveniences with dining, entertainment, major highways, shopping and Scottsdale or Sky Harbor Airports only minutes away. Plan your tour of El Castillo Today!

3233 E Bluebird Place Chandler, AZ 85286

$845,900
5 Beds
4.5 Baths
3,778 SqFt
Status Active
MLS # 6740385
Property Type Single Family Residence
Price Type --
This exquisite 5-bedroom, 4.5-bathroom home is a perfect blend of luxury and comfort. The bedrooms feature brand new, plush carpeting, creating a cozy and inviting atmosphere. The heart of the home is the spacious kitchen, complete with a stylish island, sleek stainless steel appliances including a microwave, range, and dishwasher. The kitchen seamlessly flows into the family room, making it an ideal space for entertaining and family gatherings. Step outside to enjoy the sparkling pool, offering a refreshing retreat on warm days. This home combines modern amenities with elegant design, providing an exceptional living experience.

718 E Scorpio Place Chandler, AZ 85249

$845,900
6 Beds
3 Baths
3,881 SqFt
Status Active
MLS # 6775205
Property Type Single Family Residence
Price Type --
This stunning two-story home offers six spacious bedrooms and three modern bathrooms, making it ideal for larger families or those who love to entertain. The inviting open layout features new flooring throughout, with cozy carpet in the bedrooms, enhancing comfort and style. The freshly painted kitchen boasts sleek cabinets with updated hardware, elegant quartz countertops, and a convenient kitchen island, perfect for meal prep and casual dining. Upstairs, you'll find five bedrooms along with a versatile loft area, including the luxurious primary suite, while the backyard oasis features a beautiful pool for relaxation and fun in the sun.

2041 S Bristlecone Drive Show Low, AZ 85901

$845,900
4 Beds
2 Baths
1,989 SqFt
Status Active
MLS # 6778335
Property Type Single Family Residence
Price Type --
Custom home in peaceful secluded high end Sierra Pines on mature ponderosa forested acre. This prime forested lot has been evaluated and managed to Firewise industry standards and boosts other additional in home high-end safety upgrades including exterior fire-resistant cement board siding on both the residence and supplemental garage, composite plank covered decks front and back. The fresh driveway, and a secondary detached 2 car garage. make managing and storing toys easier. Inside, this rare find you have 4 bedrooms and 2 bath as part of the a split floor design. Hardwood hickory floors, a gas-start fireplace that makes starting a cozy fire easy. Enjoy lower energy bills and efficiency with solar panels and a solar blanket in the attic.

2468 S Salida Del Sol -- Chandler, AZ 85286

$845,700
4 Beds
2 Baths
2,446 SqFt
Status Active
MLS # 6745020
Property Type Single Family Residence
Price Type --
Experience luxury, gorgeous remodeled Ocotillo home in Chandler. It features custom solid surface cabinets and quartz mitered countertops throughout, with seamless wood-look vinyl flooring with no carpet. Highlights include a 10-foot metal bifold exterior door, a custom built in electric fireplace, and stylish black hinges and hardware. The bathrooms boast fluted tile, custom glass showers, Delta faucets. The master shower has a built-in seat with a handheld wand, and a waterfall tub faucet. The garage offers a triple epoxy finish, and laundry room has a custom built in. Enjoy a matured private landscaped yard, Pebble Tech play pool, jacuzzi with BRAND NEW 400K BTU heater, and newly redone cool deck. Newer AC units complete this move-in ready home.

42920 N Highway 60 -- Morristown, AZ 85342

$845,000
3 Beds
2 Baths
1,967 SqFt
Status Active
MLS # 6745454
Property Type Single Family Residence
Price Type --
VIEWS, VIEWS, VIEWS! This newly constructed 3-bedroom, 2-bathroom home offers captivating mountain views and a charming front porch, ideal for having your morning quite time. As you enter through the double doors, you'll be greeted by a spacious, open floor plan and an elegant wood-looking flooring that perfectly flows throughout. The galley kitchen is a culinary delight, featuring plenty of counter space accompanied by a stylish tile backsplash, and stainless steel appliances. The primary suite has plenty of space with a pristine ensuite, dual sinks, a glass-enclosed shower, and a generous walk-in closet. Unwind on the covered patio, where you can relax and take in the stunning panoramic views and endless blue skies. This home is an absolute must-see and is sure to exceed your expectations!

2419 E Tomahawk Drive Gilbert, AZ 85298

$845,000
6 Beds
4 Baths
3,831 SqFt
Status Active Under Contract
MLS # 6750097
Property Type Single Family Residence
Price Type --
Discover luxury living in this stunning 2-story home in Gilbert's sought-after Adora Trails community. This elegant residence features a spacious living area with a cozy fireplace, a gourmet kitchen with stainless steel appliances, quartz countertops, and custom cabinetry. The luxurious downstairs guest suite offers privacy and comfort. Enjoy your private backyard oasis with a sparkling pool and ample space for entertaining. Additional highlights include a three-car garage and meticulous landscaping. Located near parks, trails, shopping, and dining. Schedule your private showing today to explore all that this exceptional residence has to offer and discover the luxury lifestyle awaiting you in Adora Trails.

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