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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Sort by: Select Price, Low to High Price, High to Low Newer Listings First Older Listings First Open House Date

5428 N 188th Lane Litchfield Park, AZ 85340

$549,900

4 Beds

2.5 Baths

2,140 SqFt

Status Active

MLS # 6777098

Property Type Single Family Residence

Price Type --

Beautifully appointed home featuring 4 bedrooms, 2.5 bathrooms, and a 3 car tandem garage situated on a premium corner lot with welcoming views of the nearby White Tanks. The well designed split floor plan offers maximum privacy with the primary bedroom separate from the 3 secondary bedrooms. Entire interior freshly painted and thoughtfully designed with wood-look tile, impressive light fixtures and plenty of natural light. Kitchen boasts a large island, stainless steel appliances, gas range, a beverage cooler, quartz counters and modern white cabinets. Step into the oversized low maintenance backyard to find a patio with a large grassy area perfect for entertaining or for kids to play.

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16426 S 180th Drive Goodyear, AZ 85338

$549,900

2 Beds

2 Baths

1,779 SqFt

Status Active

MLS # 6777616

Property Type Single Family Residence

Price Type --

Welcome to this energy-efficient residence located on a desirable corner lot in the sought-after 55+ Cantamia Community! Enter to find a harmonious open floor plan featuring wood-look tile flooring & neutral palette that complements any décor. Well-appointed kitchen boasts abundant cabinets topped w/crown moulding, tile backsplash, butler's service area, recessed & pendant lighting, a prep island w/a breakfast bar, granite counters, & high-end SS appliances such as cooktop gas & a wall oven. The main bedroom is a serene retreat, offering plush carpet, plantation shutters, an ensuite w/dual sinks, & a walk-in closet. Flexible den provides additional space, perfect for an office or library. Discover the expansive backyard, complete w/an extended covered patio & a refreshing pool. LAKE VIEW! *$$$SOLAR SAVINGS$$$* / GATED community / DEN-FLEX ROOM can be easily converted into 3rd BDRM. NEAT Bucher Block counter in Butler area- AC Minisplit in the Garage.

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9315 E Arrowvale Drive Sun Lakes, AZ 85248

$549,900

2 Beds

2 Baths

1,842 SqFt

Status Active

MLS # 6779048

Property Type Single Family Residence

Price Type --

Welcome home! This 2-bedroom, 2-bath residence features a 2-car garage, a paver driveway, and a well-maintained front yard. You'll be delighted by the living/dining room with vaulted ceilings, a soothing palette, and durable tile flooring. The gourmet kitchen boasts a breakfast nook, granite counters, custom wood cabinetry with crown moulding, recessed lighting, built-in appliances, a pantry, and an island with a breakfast bar. You'll also find a versatile den ideal for an office or study. The main bedroom offers plush carpeting, a quaint sitting nook, an ensuite with dual sinks, and a walk-in closet. Enjoy relaxing outdoor moments in the backyard, showcasing a covered patio and abundant space for hosting memorable gatherings with loved ones. Make it yours today!

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11967 W Vernon Avenue Avondale, AZ 85392

$549,900

5 Beds

3 Baths

2,979 SqFt

Status Active

MLS # 6781455

Property Type Single Family Residence

Price Type --

ABSOLUTELY GORGEOUS 5 bedroom, 2.75 bath with a separate den/office nestled in a quiet neighborhood conveniently located close to I-10, shopping, and the 101! A soaring ceiling, open floor plan, and an inviting color palette greet you as you step inside to the combination dining/living room. The spacious kitchen is perfect for entertaining and features granite countertops, an island, new stainless-steel appliances, farmhouse sink, and plenty of counter space. The space opens to a family room for easy conversation and gatherings. You will also find a bedroom, a full bathroom, and a separate den/office on the main level. The kid friendly, low maintenance backyard is a sanctuary for bird lovers. With its view of the Estrella Mountains, this yard provides a great venue for those gatherings. The home borders an open green space allowing for peaceful evenings on the back patio. With its sparkling pebble tech pool, turf, landscape, storage shed, pergola and concrete side yards, this beauty won't last long! Updates/new in 2023 - paint interior and exterior, carpet, plantation shutters, French doors leading to outside patio, additional insulation in attic, mini split heat pump in garage, garage door opener, ducts cleaned, and pool pump!!

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813 W Diamond Drive Tempe, AZ 85283

$549,900

3 Beds

2 Baths

1,915 SqFt

Status Active

MLS # 6782021

Property Type Single Family Residence

Price Type --

This beautifully upgraded home is a standout gem! Thoughtfully renovated inside and out, this home combines efficiency, elegance, and high-end finishes and is 100% move-in-ready. Be the very first to live in this freshly renovated home! Stunning wood-look porcelain tile throughout the entire home - no carpet here! Upgrades include solid maple cabinet doors, white quartz countertops, all new dual pane argon windows throughout the home, new fans, hardware, light fixtures, toilets, mirrors, and the list goes on and on!! The details and touches put into this home are unmatched. Freshly epoxied garage with storage cabinets, plus a RV gate w\ concrete slab for your motorhome, boats, or other toys. Add this one your short list - this home is gorgeous and completely turnkey!!

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13029 W Campbell Avenue Litchfield Park, AZ 85340

$549,900

5 Beds

3 Baths

2,779 SqFt

Status Active

MLS # 6782606

Property Type Single Family Residence

Price Type --

Your beautiful 5 bedroom, 3-bathroom home awaits you in the sought after Wigwam Creek South neighborhood! The inviting courtyard is perfect for sitting outside on those cooler AZ nights. When entering the home, you walk into the formal living room & dining room great for holiday gatherings. Step inside to an open-concept layout, where a bright great room flows into a lovely kitchen with stainless steel appliances, plenty of cabinets, Corian countertops, an island perfect for entertaining & porcelain sink with window above looking out to the backyard. The bedroom downstairs with a full bath is perfect for guests. The laundry room is downstairs with cabinets & attached countertop space. Going up the beautiful wood banister stairs you will find 4 more bedrooms including the owner's suite. The spacious owner's suite includes a living/sitting room, walk-in closet and an en-suite bath with a soaking tub and large walk-in shower with sitting area. Loft/landing area upstairs makes for a great desk station Outside, enjoy a landscaped backyard with a covered patio, grass and raised flower beds, ideal for relaxation. Bring your toys there is plenty of space with the RV gate and 3 car garage. This home is located near top-rated schools, freeways, parks, shopping & dining.

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22633 W Yellow Bird Lane Wittmann, AZ 85361

$549,900

4 Beds

2 Baths

1,987 SqFt

Status Active

MLS # 6787326

Property Type Single Family Residence

Price Type --

A true desert dream, with Mountain views of the White Tank from your backyard. Over 52,000 square feet of land, bring your desert toys, this property offers privacy and tranquility.Split designed floor plan, offers four large bedrooms and an oversized walk-in closet in the Master Suite. The guest bathroom features dual sinks and tons of storage. A very welcoming open living area, spacious kitchen, as well as formal dining area, breakfast nook and bar seating. The soaring ceilings and full fresh interior paint create a bright and airy atmosphere with beautiful desert views. You will love the three car garage and additional parking, with plenty of room for all of your vehicles and off-road toys! The additional outdoor shed provides space for tools and storage, and the covered patio in the backyard is the perfect place to relax as the sun goes down. This home also has a brand new roof and no HOA!

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1501 W Grovers Avenue Phoenix, AZ 85023

$549,900

7 Beds

3 Baths

2,498 SqFt

Status Active

MLS # 6789833

Property Type Single Family Residence

Price Type --

Nestled in a charming & peaceful neighborhood, this fully remodeled 7-bedroom, 3-bathroom home is a rare gem in the highly sought-after North Phoenix area. Known for its balance of tranquility & convenience, This property truly over-delivers on value. All the bedrooms are larger, feat. 3 Master bedrooms!, it's perfect for a large family, a multi-unit rental, group home, or senior living facility. Thoughtfully designed w/ flexibility in mind, the home features 4 private exterior entrances, two spacious living areas, and a galley laundry. Spacious corner lot, w/ opportunities for expansion —add outdoor amenities, additional living space, or an additional income producing unit. This property also boasts a large backyard with an RV gate, concrete pad, parking for 8 vehicles/trailers/boats

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16406 W Charlotte Drive Surprise, AZ 85387

$549,900

4 Beds

3 Baths

2,655 SqFt

Status Active

MLS # 6791655

Property Type Single Family Residence

Price Type --

Discover this stunning single-story home in Surprise, where modern upgrades meet luxurious living. Recently updated throughout, this impeccable property features a spacious open floor plan with soaring 10-foot ceilings, creating an inviting and airy ambiance. The home includes 4 generously sized bedrooms, offering ample space for family and guests. The eat-in kitchen is a chef's dream, boasting stainless steel appliances, a large island, and plenty of counter space for cooking and entertaining. Step outside into your private backyard oasis, complete with low-maintenance synthetic grass and a sparkling pool, perfect for relaxation and gatherings. Energy efficiency takes center stage with owned solar panels and a tankless gas hot water heater, keeping utility costs low while enhancing sustainability. Additional highlights include pre-wired surround sound, a security system, a three-car garage, and coveted north-south exposure for optimal natural light. Combining class, comfort, and convenience, this exceptional home is a must-see!!!!

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2504 N Papago Drive Tempe, AZ 85288

$549,900

4 Beds

3 Baths

2,042 SqFt

Status Active

MLS # 6799336

Property Type Single Family Residence

Price Type --

Papago Mountain views! Fully renovated 4 bed 3 bath home in a quiet neighborhood. Amazing central location, just a short drive away from the airport, downtown Scottsdale, ASU, Papago Park and more. No HOA! OWNED SOLAR! Enjoy your energy savings for years to come!

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3218 N Ravine -- Mesa, AZ 85215

$549,900

3 Beds

2 Baths

1,868 SqFt

Status Active Under Contract

MLS # 6752209

Property Type Single Family Residence

Price Type --

No HOA! This charming 3-bedroom, 2-bath home features elegant travertine floors throughout and plantation shutters for a touch of sophistication. The central vacuum and water softener make for carefree maintenance and vaulted ceilings enhance the open, airy feel, while the play pool in the backyard offers a perfect retreat. The fireplace in the family room, breakfast bar seating in the kitchen, ceiling fans throughout the home & 220V access in the garage for EV charging are just a few of the features that make this the home of your dreams. Located in a desirable Mesa neighborhood, this home blends style and functionality seamlessly and is ideal for both relaxation and entertaining. It's a true gem in a prime location with easy access to the 202 freeway, shopping and schools.

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18150 W Las Cruces Drive Goodyear, AZ 85338

$549,900

3 Beds

2 Baths

2,671 SqFt

Status Active

MLS # 6788425

Property Type Single Family Residence

Price Type --

What a wonderful home with incredible pool & spa located in the resort style community of Estrella MTN Ranch! Marvelous interior offers two way fireplace in family room and great room, 3 bed, 2 bath, bar, and fabulous media/theater room perfect to entertain your guests. You'll love the huge kitchen equipped with a plethora of cabinets, granite counters, and center island. The roomy master suite has a private exit to backyard and a lavish bath with double sinks, makeup vanity, Garden tub, glass shower, & large walk-in closet with custom built ins. Serene over sized lot, premium backyard is great for gatherings with its blue Heated pool, relaxing spa, lovely covered patio, and personal putting green with Turf (Low maintenance). Location is IDEAL. Absolute Entertainers Delight! Theater-- Has 1L0 Screen, Risers, & soundboard insulated ROOM with Equipped surround sound throughout the home with all of the goodies. MUST see pictures & please review document tab to see additional Estrella & home Amenities. Premium Mountain views! Walking distance to North & South Lake as well as MTN Trails. Superior Floor plan design with exceptional finishes providing beauty & comfort with Amenities of much higher priced homes. Surrounded by majestic mountains and wide-open desert vistas, life in Estrella is a masterpiece of harmonious balance dynamic, yet sereneoffering something for everyone no matter what stage of life. Backyard oasis with putting green. Freshly painted exterior in 2023 and newer painted interior. HVAC is 2 yrs old and has a 15-yr transferable warranty. A resort-inspired lifestyle with state-of-the-art amenities awaits.

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