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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5231 E Kaniksu Street Apache Junction, AZ 85119

$3,650,000
3 Beds
2 Baths
2,473 SqFt
Status Active
MLS # 6677803
Property Type Single Family Residence
Price Type --
Welcome to a one-of-a-kind opportunity to own a magnificent adobe block custom home nestled on 11.2 acres of picturesque land nestled at the base of the Superstition Mountains. Boasting panoramic views of the majestic Superstition Mountains, this property offers a rare blend of luxury living, income potential, and endless outdoor adventure. Step into a world of rustic elegance with this meticulously crafted adobe block home, where every detail reflects the charm and character of the Southwest. From the exposed wooden beams to the handcrafted finishes, this home exudes warmth and authenticity at every turn. Take advantage of the property's income-producing potential with a fully equipped horse stable and RV camping facilities.

40980 N 97th Street Scottsdale, AZ 85262

$3,650,000
4 Beds
4 Baths
4,954 SqFt
Status Active
MLS # 6758043
Property Type Single Family Residence
Price Type --
Golf Membership available from seller. Situated on the 10th fairway of the beautiful Chiricahua golf course at Desert Mountain, this charming Santa Barbara style home offers sparkling city lights, sunset, mountain and golf course views. The open and flowing floor plan has three suites in the main home as well as a detached casita. The home is tucked back off of the street for ultimate privacy and has a courtyard entry complete with beautiful water feature and spacious patios. Enjoy the great views from the wrap around outdoor living space complete with pool/spa/bbq and outdoor living room with fireplace and tv. Exquisite details include multiple use of natural stone and wood thru out the home. Being offered turn key minus several of sellers personal items. Truly a must see!

42016 N 54th Street Cave Creek, AZ 85331

$3,600,000
4 Beds
4.5 Baths
4,000 SqFt
Status Active
MLS # 6657847
Property Type Single Family Residence
Price Type --
Luxurious and spacious home with stunning mountain views. This to-be-built home will offer four bedrooms, 4.5 bathrooms, and 4000 sqft of living space on a 2.5-acre lot. The home will have a north/south exposure, a formal dining area, a great room, a private pool, and a three-car garage. The home will also have no HOA fees, giving you more freedom and flexibility. This is a perfect opportunity to own a custom and elegant home in a scenic and convenient location!

3818 E Brown Road Mesa, AZ 85205

$3,600,000
5 Beds
5 Baths
8,460 SqFt
Status Active
MLS # 6752634
Property Type Single Family Residence
Price Type --
Discover the epitome of luxury living at 3818 East Brown Road, Mesa, AZ. This rare, gated, 4-plus acre equestrian estate is a dream come true for horse enthusiasts and those seeking an unparalleled lifestyle. Nestled in the heart of northeast Mesa, this single-level, custom-built Amberwood home spans 8460 square feet (Main House is 6836sf, guest house is 576sf, guest house basement is 1048sf) and offers an array of exceptional features. The property boasts a 4-stall barn, two tack/feed rooms, a wash rack, and an arena, making it perfect for equestrian activities. Inside, you'll find 4 spacious bedrooms, including 2 primary suites, and 4 well-appointed bathrooms. Primary bathroom has steam shower. The home is designed for both comfort and elegance, featuring formal living, dining, and family room with wet bar, a large office with wet bar, a gym, and a game room with wet bar. Car enthusiasts will appreciate the attached and detached garages that can accommodate up to 10 cars, with 6 garage spaces equipped with A/C. The outdoor amenities are equally impressive, with an amazing custom pool and patio seating, a covered patio with a fireplace, and an outdoor ramada complete with a fireplace and kitchen. The guest house/casita offers additional living space with 1 bedroom, 1 bathroom, a kitchen, and a basement that includes an exercise room and a shooting/archery range. The expansive lot is beautifully landscaped with large front and back lawns, numerous citrus trees, and mature palm trees, creating a serene and picturesque environment. Conveniently located close to the 202 freeway, residents enjoy easy access to all parts of the Phoenix metro area, including PHX Sky Harbor. The property is an ideal choice for families. For recreation, the Mesa Tennis & Pickleball Center at Gene Autry Park are just a short drive away. This home offers the perfect blend of convenience and luxury. This estate is not just a residence but a lifestyle choice for those seeking the best in Mesa living. Don't miss out on this extraordinary opportunity to own a piece of paradise in one of Mesa's most sought-after locations.

4514 E Pebble Ridge Road Paradise Valley, AZ 85253

$3,600,000 - 5Br/5Ba -  for Sale in Pebble Ridge, Paradise Valley
Open House
$3,600,000
5 Beds
4.5 Baths
5,190 SqFt
Status Active
MLS # 6703586
Property Type Single Family Residence
Price Type --
Love Paradise Valley but want an updated home? Remodeled down to the studs in 2019/2020, this home offers updated kitchen, baths, flooring, and even new plumbing. Views of Camelback Mountain are visible the minute you enter, and from the entire rear of the property, inside and out. Warm wood floors welcome you into the home and a cozy bar is set in the corner of the living room with brass shelving supports, and both verage and dual zone wine coolers. Beamed Ceilings give a nod to the history of this contemporary style home, allowing any style of décor to blend. The first of three fireplaces graces the living room, which is open to the dining area. A very spacious family room is just steps away with it's own fireplace. With an opening to the Living/Dining areas, this floorplan is wonderful for entertaining. The Kitchen has a fresh feel with white cabinetry, Quartz countertops, with contrasting black and brass elements. A central island, induction Bosch rangetop, Sub Zero Refrigerator and Ovens, Microwave drawer and walk in Pantry provide an abundance of storage and top of the line appliances for culinary adventures. One of five bedrooms is just off the Living Room and would be a great space for an office. An adjacent bath with shower allows it be whatever works for you. The powder room sports a sophisticated feel with black millwork accented walls, black and white marble Hexagon floor tile, and brass accents. The powder room is also accessible from the rear open space of the property. The Primary Suite is a dream. Large enough to include a separate seating area, customized closets, and patio access, this room is secluded from the other bedrooms. The Primary Bath is well designed with marble and porcelain tile accents, a large walk-in shower, separate vanities and a soaking tub and fireplace. The remaining three bedrooms are spacious, the largest with an en-suite bath. Another bath is shared by the last two bedrooms. One of the family's favorite spots is the large media room. There is more than enough space for this to be a playroom and study area, in addition to the media area. The laundry is large, with extra cabinetry and a drop zone just off the 2 car garage. Outside, a raised patio keeps the views available, and overlooks the pool area. A large low maintenance turf lawn leads to the sports court. The batting cage in this area does not convey with the home.

6623 E Aster Drive Scottsdale, AZ 85254

$3,599,000
4 Beds
5 Baths
4,278 SqFt
Status Active Under Contract
MLS # 6775294
Property Type Single Family Residence
Price Type --
New construction in a quiet neighborhood just minutes from Scottsdale Quarter, Kierland, the new PV Mall, restaurants, the Mayo Clinic, great schools, Hwy 101 & more. Split floor plan w/4,278 sq ft on a half-acre, 4 ensuite bedrooms, 5 baths, office, bonus room, and a great room with soaring ceilings & a glass wall of retractable doors leading to an AZ backyard paradise w/a 4,500 sq ft bi-level patio surrounding a large negative edge pebble sheen pool & infinity spa! Quality abounds w/black Andersen windows, Hinkley Lighting, 48'' Viking gas range, micro & dishwasher, a 66'' professional refrigerator, a large Taj Mahal Quartz waterfall island, European oak flooring, a concealed 14x7 ft butler's pantry & much more! See the supplement below or docs tab for a detailed features list (Cont.) LUXURIOUS DESIGN **

5856 N 44th Street Phoenix, AZ 85018

$3,595,000
5 Beds
4.5 Baths
4,355 SqFt
Status Active
MLS # 6783567
Property Type Single Family Residence
Price Type --
Welcome to this stunning, fully renovated modern home that masterfully blends luxury with functionality. Boasting 4 spacious bedrooms, 4.5 baths, and a dedicated office, this home offers a perfect balance of comfort and style. The oversized master suite is a true retreat, featuring its own sitting area with views of the pool and backyard oasis. Step into the expansive great room, where 20-foot wide, 10-foot tall sliding glass doors open to breathtaking mountain views. A 16-foot tall fireplace anchors the room, creating an inviting focal point, while a sleek bar and wine wall add an extra touch of elegance. The design and finishes throughout are top-tier, showcasing high-end upgrades and modern details at every turn. The home is ideally situated just moments from Paradise Valley, Arcadia and Biltmore, offering the best of both privacy and convenience. The beautifully landscaped backyard is an entertainer's dream, complete with a sparkling pool, covered patio, built-in BBQ, and a putting green  perfect for relaxing or hosting gatherings. This extraordinary home offers the perfect combination of luxurious living, remarkable design, and an unbeatable location. Don't miss your chance to make it yours!

10040 E Happy Valley Road Unit 417 Scottsdale, AZ 85255

$3,595,000
4 Beds
5.5 Baths
6,370 SqFt
Status Active
MLS # 6711268
Property Type Single Family Residence
Price Type --
OUTSTANDING VALUE! Immediate membership at close of escrow! Situated on over 1.3 acres on a private cul-de-sac lot, offering the ultimate in privacy! Gated courtyard entry surrounded by the beautiful flora of the Sonoran Desert. Great room floorplan, private master suite, 3 guest bedrooms with ensuite baths, office, upstairs library/hobby room + bonus room with sweeping city light & mountain views. 24x24 travertine floors, wood beams, stacked stone & more. Gourmet kitchen with new top-of-the-line appliances, designed for the most discerning chef, features taj mahal quartzite countertops, knotty alder cabinets and adjacent breakfast room with fireplace. Private resort like backyard with beautiful mountain views as a backdrop, pebble tec pool and spa (see ''more'' remarks).. ... cooking station with new Napoleon gas grill, private side yard perfect for a garden or dog run. Exquisite landscape design by Trademark Landscaping. Desert Highlands, ranked as a top 100 club by Platinum Clubs of the World, offers world class amenities include a Jack Nicklaus championship golf course, 18-hole putting course, award winning clubhouse featuring Jack's Gastropub and Jack's Backyard, Highlands Racquet Club offering grass and clay tennis courts + pickleball courts, state of the art fitness center & more. A $150,000 membership fee is due from buyer at close of escrow (Membership fee $190,000 as of 2/1/2025).

1502 E Treasure Cove Drive Gilbert, AZ 85234

$3,590,000
8 Beds
8 Baths
6,781 SqFt
Status Active
MLS # 6760150
Property Type Single Family Residence
Price Type --
Welcome to the rarest one-of-a-kind MASTERPIECE in prestigious GATED West Lake Estates! This unique estate is located on 2 waterfront lots with the most STUNNING expansive 240 degree views of the lake--and this exquisite ESTATE has recently been completed remodeled! Some unique features: over 6700 square feet of the finest luxury and superior quality finishes with 8 bedrooms and 8 baths, a large 3 car garage, an elevator, Gourmet Chef's Kitchen--both indoors and out--home theater, game room, 50 bottle wine room with humidor, impressive outdoor patio with a huge gazebo that has misting and heating, firepits, impressive 36,000 gallon salt water pool with swim up bar.. the views & outdoor living are like living in the finest 5 star resort! Click ''more'' for further Also included is the Val Vista Lakes Clubhouse which has: tennis courts, pickleball courts, raquetball courts, weight room, aerobic room, heated outdoor Olympic sized lap pool, beach pool with waterfalls, boat dock with boat and ballroom facility for private events! This is in a prime location--close to shopping, Dana Park which has some of the best restaurants and shopping in the Valley! It is a few minutes from the US-60 and Loop 202, close to Banner hospital and only about 25 minutes from the Sky Harbor Airport!

3500 E Lincoln Drive Unit 17 Phoenix, AZ 85018

$3,590,000
4 Beds
4.5 Baths
5,345 SqFt
Status Active
MLS # 6780847
Property Type Single Family Residence
Price Type --
A TROPHY HOME WITH PANORAMIC VIEWS, STYLE, AND UPSCALE AMENITIES! Experience the pinnacle of luxury living at an unbeatable value in the exclusive, 24-hour guard-gated Lincoln Hills community. Perched high on its own hillside, this sleek 5,345 SF modern masterpiece boasts 4 en-suite bedrooms and show-stopping views of the city and mountains from nearly every room. Designed for discerning buyers seeking sophistication and low-maintenance luxury, this home's open-concept layout flows seamlessly between stylish indoor and outdoor spaces. The centerpiece is the 2022 designer kitchen—a true work of art—featuring Sub-Zero and Wolf appliances, dual ovens, dual dishwashers, a coffee bar, and wine fridge. The home's clean, modern aesthetic and walls of glass frame the spectacular views and walls of glass frame the spectacular vistas while flooding the interiors with natural light. The owner's suite is your private retreat, complete with a sleek gas fireplace, lounge area, and oversized boutique-style closet. The spa-inspired bathroom redefines indulgence, offering a soaking tub, sauna, dual vanities, and even a coffee bar. Step outside to your private backyard oasis, built to impress and entertain. A resort-style pool, outdoor kitchen, and expansive covered deck provide the ultimate setting for hosting or unwinding while soaking in the city lights. Additional Features That Make This Home Unforgettable: Private guest/office suites with separate exterior access for added flexibility. Three elegant gas fireplaces create cozy, statement spaces throughout. Direct access to hiking trails, plus community tennis courts, a heated pool/spa, and more. Lock-and-leave design for effortless, low-maintenance living. Brand-new roof (2023) and hot water heaters (2022)move-in ready! Located minutes from Arizona Biltmore, Paradise Valley, upscale shopping, fine dining, and the airport, this property is the ultimate combination of convenience, style, and status.

12651 S 71st Street Tempe, AZ 85287

$3,570,000
6 Beds
8 Baths
7,823 SqFt
Status Active
MLS # 6748395
Property Type Single Family Residence
Price Type --
WOW this DREAM compound offers LUXURIOUS living with spacious residences and TOP-NOTCH amenities and it's one of a kind!! The main house features impeccable finishes: a chef's kitchen, a butler's kitchen, large pantry, new flooring, vaulted ceilings with custom beam work and so much more. Over 174 photos uploaded for your review and enjoyment. Main house featured 4 large bedrooms each having private baths, formal and casual living spaces, and two private office spaces, it seems ideal for both family life and professional needs. The primary suite is particularly impressive, with dual vanities, toilet rooms, a multi-head shower, extensive built-in storage, and direct laundry access. The second residence adds a recreational dimension with indoor basketball and pickleball courts, along with along with a guesthouse or man cave that includes a full kitchen, TV room, and extra beds. The outdoor area is designed for entertaining, and with a large courtyard patio, 4 car garages, additional parking, and extensive air-conditioned storage, it offers both luxury and practicality. The private gated entrance and the absence of an HOA provide added privacy and freedom. This property seems like it truly needs to be seen in person to fully appreciate all it has to offer! The guest house has a full-size indoor basketball/pickleball court with a full kitchen, bathrooms, and two bedrooms adds a unique and practical feature to the property. The resort-style pool is BRAND NEW with a covered sitting area and built-in BBQ enhancing the luxurious, resort-like feel of the compound. This property truly offers a comprehensive package for luxury living and entertaining.

5036 N Ascent Drive Scottsdale, AZ 85251

$3,554,620
2 Beds
2.5 Baths
3,035 SqFt
Status Active
MLS # 6702185
Property Type Single Family Residence
Price Type --
A NEW PRIVATE RESIDENTIAL COMMUNITY WITH A COVETED LOCATION AT THE BASE OF CAMELBACK MOUNTAIN ADJACENT TO THE ICONIC PHOENICIAN® RESORT IN SCOTTSDALE. ONLY A SHORT DISTANCE TO FASHION SQUARE AND OLD TOWN SCOTTSDALE. THIS COLLECTION OF CUSTOM HOMES TO BE BUILT EXCLUSIVELY BY CULLUM HOMES OFFERS ONE, TWO AND THREE-LEVEL RESIDENCES THAT REFLECT A TIMELESS, MODERN DESIGN AND LOOK OUT OVER THE BEAUTIFUL PHOENICIAN® GOLF COURSE. ALL PLANS ARE FULLY CUSTOMIZABLE. INTRODUCING THE CIRRUS A FLOOR PLAN, A TWO-STORY HOME FEATURING 2 BEDROOMS, 2.5 BATHROOMS, AND A 3-CAR GARAGE. THROUGH THE EXTRAVAGANT FRONT ENTRANCE LOCATED ON THE LOWER LEVEL, A BEAUTIFUL STAIRCASE OR AN ELEVATOR TAKE YOU TO BOTH LEVELS OF THE RESIDENCE. THE MAIN LEVEL BOASTS TWO EN SUITE BEDROOMS, PRIVATE FORMAL DINING AREA, OPEN CONCEPT KITCHEN, ADDITIONAL POWDER ROOM AND THE GREAT ROOM AREA. SPACIOUS KITCHEN WITH ISLAND, EAT-AT BAR AND WALK-IN PANTRY. A GLASS WALL LEADS YOU TO THE COVERED PATIO OFF THE GREAT ROOM WHERE GORGEOUS VIEWS AWAIT YOU. OWNER'S SUITE WITH WALK-IN CLOSET, DOUBLE SINK VANITY, SEPARATE TOILET ROOM, TUB AND WALK-IN SHOWER. ALONG WITH AN ADDITIONAL EN SUITE BEDROOM, LARGE LAUNDRY ROOM WITH EXTRA STORAGE AND A DECK AREA. THE COMMUNITY IS GUARD GATED FOR PRIVACY AND SECURITY. AT THE BASE OF CAMELBACK MOUNTAIN, YOUR PRIVATE POOL, FITNESS CENTER, AND SOCIAL SPACES OFFER AN INTIMATE GATHERING PLACE FOR WELLNESS, SOCIALIZING AND RELAXATION. RESIDENTS ARE OFFERED THE OPTION TO JOIN THE PHOENICIAN® AMENITY ACCESS PROGRAM - ACCESS AND DISCOUNTS TO THE NEW ATHLETIC CLUB, 38,000 SQUARE FOOT SPA, TENNIS FACILITY AND RESORT POOLS AT THE PHOENICIAN® RESORT.

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