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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487 Loy Lane Sedona, AZ 86336

$3,500,000

3 Beds

4 Baths

3,828 SqFt

Status Active

MLS # 6647459

Property Type Single Family Residence

Price Type --

Imagine the best forever views of the most spectacular and most photographed Red Rock Vistas in all of Sedona! Enjoy glowing sunsets of Cathedral Rock Vista and expansive Forest Service views to the East from this top of the hill location, and gorgeous greenbelt views of Oak Creek to the West. Hear sounds of the meandering creek from your front patio. New luxury construction home with modern open floor plan, 3828 SF, 3 bedrooms/4 baths plus recreation room located in the prestigious gated subdivision of Sedona Ranch on Oak Creek. Private estate size parcel of 2.54 acres adjacent to Forest Service land. Hike out from your doorstep to 100s of miles of trails in Turkey Creek area, Red Rock State Park, Crescent Moon Ranch and Cathedral Rock. Home to be completed around August 1, 2024.

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4195 S Pack Saddle -- Flagstaff, AZ 86005

$3,500,000

6 Beds

5 Baths

5,413 SqFt

Status Active

MLS # 6789477

Property Type Single Family Residence

Price Type --

Welcome to your dream retreat nestled in the prestigious Flagstaff Ranch community, perfectly positioned on the 9th and 10th fairways. This stunning six-bedroom, five-bathroom cabin offers a seamless blend of rustic charm and modern luxury, creating the ultimate sanctuary for relaxation and entertainment. The heart of the home is a breathtaking chef's kitchen, where naughty alder pine cabinets stained in a rich gray tone complement the thick, one-of-a-kind stone granite countertops. This space is a culinary artist's paradise, complete with high-end appliances and ample room to create and entertain. Just steps away, the wet bar awaits, featuring two wine fridges and an ice maker, making it ideal for hosting gatherings. The main level boasts a serene master suite with an office just steps away, creating the perfect space for work or relaxation. Step out onto the walkout deck, where a luxurious spa invites you to unwind while soaking in the tranquil surroundings. Upstairs, three spacious bedrooms, two bathrooms, and sitting area and another walkout deck provide a haven for guests or family members.The lower level is designed for entertainment, offering a full game room equipped with TV and electronic projector screen, an additional bedroom, and a full bathroom. Whether hosting game nights or enjoying quiet evenings, this space delivers endless possibilities. The cozy stone fireplaces alongside the travertine tile, create a cozy and sophisticated ambiance. The floor to ceiling windows out onto the expansive deck, complete with in-ceiling radiant heat, offers unparalleled views of the 10th fairway and the majestic mountains beyondperfect for year-round enjoyment. Every detail of this home exudes quality and thoughtful design. The furniture is available, allowing you to move in effortlessly. Experience the best of Flagstaff Ranch living with this extraordinary property. Its a rare opportunity to own a piece of paradise in one of Arizona's most sought-after communities. Come tour this one of a kind property today and discover the lifestyle you've always dreamed of!

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11970 S Blue Bell Road Mayer, AZ 86333

$3,500,000

3 Beds

2 Baths

1,406 SqFt

Status Active

MLS # 6628769

Property Type Single Family Residence

Price Type --

There are four wells located on the property The site has one main house and four smaller homes. (1400sqft Main House) Over 60,000sqft of covered horse facilities. Includes an enormous indoor covered show ring 36,000sqft, an outdoorshow/roping ring, two paddocks for horses, a hot walker and open land available for growing feed for crops In Mayer, the summers are hot, dry, and mostly clear and the winters are cold and partly cloudy. Over the course of the year, temperatures vary from 31°F to 92°F and are rarely below 23°F or above 99°F. 70 miles north of Phoenix

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1187 S Val Vista Drive Gilbert, AZ 85296

$3,500,000

4 Beds

2.5 Baths

2,685 SqFt

Status Active

MLS # 6729558

Property Type Single Family Residence

Price Type --

Rare Acreage in Gilbert. Nearly 5 acres. Existing home is approximately 2700 sqft. Or build your own dream home in the heart of Gilbert on this irrigated horse property. Looking for an investment property - Many Development Opportunities are available on these 3 parcels currently zoned R43. Adjoining nearly 5 acre parcel may also be available for those seeking larger acreage. Don't miss this rare opportunity to live on or develop roughly 5-10 acres in a highly desired Gilbert location - just 1.5 miles to Loop 202 or 4 miles to US 60.

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20445 E Sunset Court Queen Creek, AZ 85142

$3,500,000

4 Beds

4.5 Baths

5,737 SqFt

Status Active

MLS # 6771442

Property Type Single Family Residence

Price Type --

20445 E Sunset Ct, Queen Creek, AZ 85142 - The Pecans' Finest Gem Step into unparalleled luxury at this 5,737 sqft masterpiece, nestled in The Pecans—a premier, gated community in the East Valley, renowned for its grand estate homes and lush pecan groves. Remodeled by a top-tier custom home builder celebrated for impeccable craftsmanship in Paradise Valley and Arcadia, this residence offers an elevated living experience. This 4-bedroom, 4.5-bath estate is a flawless blend of sophistication and innovation. The heart of the home is its newly reimagined kitchen, a chef's dream with custom in-set cabinetry, Wolf and Subzero appliances, and designer lighting that enhances the airy, neutral palette throughout. Every room exudes refined elegance, and the layout is meticulously crafted to balance open living spaces with private retreats. The reimagined backyard is a showstopper. The pool was thoughtfully relocated to align with expansive glass sliders in the living room, offering breathtaking views and seamless indoor-outdoor living. The outdoor space now feels like a private resort, complete with modernized landscaping, and luxurious entertainment areas perfect for any gathering. No detail was overlooked; no expense spared. This is a must-see for discerning buyers looking to own a piece of luxury in one of Queen Creek's most exclusive enclaves.

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3702 E Brown Road Mesa, AZ 85205

$3,500,000

9 Beds

11 Baths

10,522 SqFt

Status Active

MLS # 6794359

Property Type Single Family Residence

Price Type --

**Welcome to Your Dream Home!** By adding your TLC. Discover the perfect blend of luxury and functionality in this stunning 10,500 sq. ft. single-level residence, nestled on a sprawling 5-acre lot. This exceptional property offers an expansive layout with a finished basement, providing ample space for both relaxation and entertainment. Enjoy the convenience of a separate guest house, apartment, ideal for visitors or as a private retreat. Outdoor enthusiasts will appreciate the incredible amenities, including a soccer field, batting cage, and tennis courts—perfect for active families and entertaining guests. With RV garages for your recreational vehicles, you'll have plenty of space to store your toys and enjoy the great outdoors. This property truly has it all, and with No HOA. You can enjoy the freedom to personalize your space to your liking. Don't miss this rare opportunity to own a piece of paradise. Schedule your private tour today and experience everything this remarkable home has to offer!

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7801 N Sherri Lane Paradise Valley, AZ 85253

$3,500,000

4 Beds

5.5 Baths

6,173 SqFt

Status Active

MLS # 6781385

Property Type Single Family Residence

Price Type --

Nestled in the desirable Tatum Canyon of Paradise Valley, this exceptional home spans over 6,174 square feet on a private acre corner lot, offering sweeping mountain views in every direction. Designed for sophisticated living, this residence blends elegance with practicality.On entering, one is greeted by a light-filled great room with soaring ceilings, glass walls, and sliding doors that create a seamless flow between the indoor and outdoor spaces. A meticulously landscaped backyard offers the ultimate retreat with a stunning pool, water features, spa, outdoor BBQ, ramada, a sport court ideal for pickleball, and beautiful lawns — all set against the backdrop of the canyon's natural beauty. The home boasts four spacious bedrooms, a dedicated office The primary suite, positioned in its own wing, is a luxurious sanctuary with a lavish bath, a 360-degree mirrored dressing room, and a cozy sitting area complete with fireplace. Designed with entertaining in mind, the chef's kitchen is a culinary masterpiece, equipped with Viking appliances, concrete countertops, and a professional-grade wine cellar. An 8-foot butcher-block island, floor-to-ceiling stone fireplace, and open-concept design make the kitchen and family room perfect for both intimate and grand gatherings. Additional spaces include a formal dining room with a dry bar, family room, and a 25-foot game room with a wet bar. Each of the four bedrooms is en-suite, with a guest suite for ultimate privacy. An elegant living room along with a library/office with a loft, complement the living areas. Previously owned by a sports star's family, this one-of-a-kind home offers an unparalleled opportunity to own a private, gated resort with dramatic views, luxurious amenities, and the perfect blend of comfort and elegance. Conveniently located with easy access to premier shopping, dining, hiking, and biking trails, this home is just a short drive from Phoenix Sky Harbor and Scottsdale airports, making it the ideal combination of luxury and convenience.

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13202 E Poinsettia Drive Scottsdale, AZ 85259

$3,500,000

4 Beds

4.5 Baths

5,075 SqFt

Status Active

MLS # 6781920

Property Type Single Family Residence

Price Type --

Built in 2016, this single level stunner is located at the end of a beautiful private cul-de-sac lot in the gated community of Rancho Terrasina, with only 15 custom estates. Privacy abounds with an enclosed entry courtyard and incredible resort yard, blending seamlessly with unobstructed mountain views. Three ensuites, an office and a bonus room in the main house, plus the casita with a bonus room off the courtyard! Chefs kitchen open to the north exposure backyard with sliding doors across the back bringing the outside in and allowing for endless hours of fun with the resort style heated spa, large lap pool, swim up bar, sunken ramada, BBQ area, Bocce court, and water slide! Plenty of grass for playing and down-valley city views from your owner's retreat hot tub off the primary bedroom! Available fully furnished separate bill of sale!

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7552 E Whisper Rock Trail Scottsdale, AZ 85266

$3,500,000

4 Beds

5 Baths

6,227 SqFt

Status Active

MLS # 6788251

Property Type Single Family Residence

Price Type --

Stunning 4 Bed+Den, 5 Bath,Custom Home Located on Premium Acre Lot,Crafted By Architect Lee Hutchinson & Home Builder Phil Smith,Located in Guard & Gated Community of Whisper Rock Estates, Elegant Kitchen w/Alder Wood Cabinets & Granite Countertops,Gas Cook Top, Double Wall Oven, Built-In Refrigerator, Kitchen Island w/Breakfast Bar,Walk-In Pantry,Family Room w/Gas Fireplace,Separate Formal Dining Room,Formal Living Room w/High Vault & Hand-Hewn Beams Throughout,Master Bedroom w/Massive Walk-In Closet,Master Bathroom w/Dual Sinks,Dual Toilets & Bidet,Walk-In Shower & Soaking Bath Tub,Fully Equipped Theater Room, Entertainers Backyard w/Dining & Living Room w/Fireplace,Built-In Grill,Elevated Terrance w/Views of Wash & Golf Course,Heated Swimming Pool & Spa, Gated Driveway w/3 Car Garage.

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7780 E Vaquero Drive Scottsdale, AZ 85258

$3,500,000

7 Beds

9 Baths

8,460 SqFt

Status Active Under Contract

MLS # 6762399

Property Type Single Family Residence

Price Type --

Welcome home to Gainey Ranch - A guard gated oasis of lush vegetation, convenient shopping, a variety of dining, 27 holes of golf, and active lifestyle amenities such as an indoor gym, sports courts, and a lap pool, all at your doorstep. This gated estate is perfectly situated along the Arroyo golf course on an acre lot, with panoramic golf course and Mummy mountain views. Perfect for car collectors or large families, this home features an 8-car garage (all w/ room for lifts), an attached guest casita with 3 bedrooms and kitchen, as well as a kids wing with 3 ensuite bedrooms, ideal for multi generational living. As you enter the home, a wide wall of floor to ceiling windows draws your eye out over the sparkling blue pool to gently rolling emerald fairways. The expansive layout with bright, airy rooms, offers a variety of living and entertaining options: from the intimate private office, to separate wings for children and/or guests, to the sprawling formal living area, to the cozy open floor family/breakfast room and kitchen. Enjoy the primary rooms' elevated, unobstructed view of the luscious golf course and rugged mountains. The primary suite encompasses a large bedroom, sitting area, wet bar, laundry room as well as His & Hers closets, His & Hers bathrooms, His & Hers showers, AND His & Hers vanities. With easy access to premier amenities, matched with a unique yet highly desired layout - this spacious home embodies Scottsdales vibrant lifestyle full of luxury and leisure.

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3800 E Lincoln Drive Unit 5 Phoenix, AZ 85018

$3,500,000

4 Beds

4 Baths

4,712 SqFt

Status Active

MLS # 6787976

Property Type Townhouse

Price Type --

Fully renovated and well-executed to the studs plus panoramic 180 degree views! This expansive townhome, which sits at the end of a cul-de-sac within an exclusive, 24 hour guard-gated community (with two pools plus tennis & pickleball) is a lock & leave dream. Wood flooring throughout, Sub-Zero/Wolf appliances, quartz countertops, eat-in kitchen, three primary suites (one upstairs, two downstairs), high ceilings and two living rooms make this a must see. There is abundant natural light in every room, as well as jaw-dropping views. You'll live in the heart of Paradise Valley - just minutes from the area's top resorts, golf & dining - with unparalleled privacy. Additional upgrades include new electrical, new plumbing and a second laundry room so there's one on each floor.

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2911 E Morrison Ranch Parkway Gilbert, AZ 85296

$3,500,000

7 Beds

6.5 Baths

6,241 SqFt

Status Active

MLS # 6792007

Property Type Single Family Residence

Price Type --

The most desired property in Morrison Ranch, offering unrivaled luxury and exceptional design on a 1-acre lot, with casita, separate side-entrance detached garage with electronic gate, tennis court, and so much more! Totally remodeled and custom-designed 6,241 sq. ft. estate features two primary suites, four secondary bedrooms with en-suite bathrooms, a massive game room and a separate casita perfect for a gym, office, or multi-family living. The chef's kitchen, with custom beams, is ideal for entertaining. This home can park 12 cars with additional RV and boat parking options. With landscaped grounds, a heated pool, spa, private tennis court, and luxurious custom details like electric blinds, this home is truly one-of-a-kind.

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