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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37547 W Washington Street Tonopah, AZ 85354

$540,000

5 Beds

3 Baths

2,421 SqFt

Status Active

MLS # 6798881

Property Type Single Family Residence

Price Type --

This stunning custom-built home, completed in 2023, offers 5 spacious bedrooms and 3 full bathrooms, providing ample room for family and guests. The master suite features a large walk-in closet and double sinks for added convenience and comfort. The open floor plan creates a bright and airy atmosphere. Cozy great room perfect for movie nights or gatherings. Fireplace adds warmth and ambiance. The gourmet kitchen boasts durable granite countertops and sleek stainless steel appliances, while a private breakfast nook offers a cozy spot for casual meals. For more formal occasions, the elegant dining room provides a sophisticated setting. Outside, the large covered patio is ideal for outdoor entertaining, making this home perfect for enjoying the true Arizona lifestyle in style and comfort!

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4977 E Southern Avenue Apache Junction, AZ 85119

$540,000

3 Beds

2 Baths

1,680 SqFt

Status Active

MLS # 6797752

Property Type Manufactured Home

Price Type --

This home features a large, flat 1.06 acre parcel, completely fenced in with wonderful mtn views & includes the main home, guest quarters & a huge 28X40 workshop/area wired 220 for any project/hobby. The main home welcomes you with an inviting covered patio, perfect for morning coffee. The living/dining room showcases vaulted ceilings, a soothing palette, blinds for privacy, and plush carpeting underfoot. Cook delicious meals in the kitchen, equipped with durable tile counters with a matching backsplash, warm wood cabinetry, essential built-in appliances, a center island for extra prep space, and a peninsula with a breakfast bar. You'll also find a versatile family room ideal for work or relaxation. The cozy main bedroom offers an ensuite with double sinks and a walk-in closet. Venture out into the spacious backyard with stunning views of the Superstition mountains. The detached guest house is currently used as an artist's studio and can be ideally used for relatives or guests! Don't forget about the large workshop featuring 4 carport spaces for convenience. Make this yours now!

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1321 W 14th Street Tempe, AZ 85281

$540,000

3 Beds

2 Baths

1,192 SqFt

Status Active

MLS # 6796377

Property Type Single Family Residence

Price Type --

Take a minute to see this wonderful remodel right in the heart of Tempe. With an entertainers dream back yard, the 3 bedroom home is perfect for the next family! Remodeled with newer floors, cabinets, plumbing, paint and so much more!

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825 N Sierra Vista Drive Wickenburg, AZ 85390

$540,000

2 Beds

2.5 Baths

1,811 SqFt

Status Active

MLS # 6797893

Property Type Single Family Residence

Price Type --

This custom-built 2 bed, 2.5 bath home features an open floorplan with beautiful LVP flooring throughout the main living areas. The bright, spacious kitchen offers breakfast bar seating and flows into a formal dining area and a cozy breakfast nook. Both bedrooms are generously sized with walk-in closets, and the primary bath has a marble shower and double sinks, while the secondary bath has been fitted with a walk-in tub/spa. There's plenty of room for all your toys in the spacious 3 car garage, with built ins, RV gate and detached RV garage with ample storage, fitted with a swamp cooler for temperature control. The beautifully landscaped yard, large covered patio and Tesla solar panels complete this incredible home.

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18235 N 129th Drive Sun City West, AZ 85375

$540,000

3 Beds

2 Baths

2,111 SqFt

Status Active Under Contract

MLS # 6790132

Property Type Single Family Residence

Price Type --

Welcome to this meticulously maintained and upgraded 3-bedroom home nestled in a peaceful cul-de-sac! The front yard greets you with a gorgeous desert landscape, an extended driveway, a 2-car garage, and a cozy enclosed covered patio, perfect for your morning coffee. Step inside to a bright living room featuring tile flooring, plantation shutters, built-in cabinets, and a bar. Dual French doors lead to a spacious great room, ideal for entertaining with easy access to the backyard. The kitchen is a showstopper with crisp white cabinets, crown molding, stainless steel appliances, Red Dragon colored granite counters, and a large L-shaped island with a breakfast bar perfect for entertaining! The main bedroom offers plush carpet, large windows, and an ensuite with a walk-in closet and sit-down shower. The backyard is your private oasis! Enjoy low maintenance landscaping, a relaxing covered patio, multiple sitting areas, play spaces, and a sparkling swimming pool. Don't miss this amazing opportunity!

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1611 W Cindy Street Chandler, AZ 85224

$540,000

4 Beds

3 Baths

2,312 SqFt

Status Active Under Contract

MLS # 6795243

Property Type Single Family Residence

Price Type --

Fantastic two-story home in Chandler Arizona! Providing 4 beds, 3 baths, 2-car garage, and a mature landscape. The inviting interior showcases tons of natural light, neutral paint, with tile & soft carpet throughout, along with vaulted ceilings. You'll LOVE the separate living & dining room paired with a bay window! The impressive kitchen boasts Stainless Steel appliances, granite counters, and ample wood cabinetry. Its breakfast nook overlooks the step-down family room, creating a distinct yet connected space. One bedroom downstairs & three bedrooms upstairs! The main bedroom has an ensuite with dual sinks, a separate tub/shower, & a walk-in closet. Enjoy the tranquil backyard, offering shade, grassy area, and a covered patio with extended pavers!

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5440 S Clambake Bay Court Tempe, AZ 85283

New

$540,000

2 Beds

2 Baths

1,212 SqFt

Status Active

MLS # 6802838

Property Type Single Family Residence

Price Type --

Amazing opportunity to own a WATERFRONT home in the beautiful Village Landing community in Tempe. Enjoy the tranquility and peaceful views of the lake just feet from your back doorstep. This 2 bedroom 2 bath home is nestled within a small private gated community that features meticulously maintained landscaping that includes mature trees, a boardwalk, creek, pond, waterfall and pool. The home has newer tile throughout, wood burning fireplace, white kitchen cabinets, vaulted ceilings, an automatic shade, views of the lake from most of the home, and master bedroom with walk-in closet and large shower. Backyard has pavers and low maintenance landscaping. Lake amenities: fishing, boating, clubhouse with heated pool, spa, exercise room, tennis, pickleball, basketball, and volleyball. Home has private boat dock spot just steps from the back door. The stove and refrigerator are new. The washer and dryer convey As Is.

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19668 E Carriage Way Queen Creek, AZ 85142

$540,000

4 Beds

2.5 Baths

2,600 SqFt

Status Active

MLS # 6799062

Property Type Single Family Residence

Price Type --

Fall in love with this stunning two-story home in Emperor Estates! Featuring 4 bedrooms, 2.5 baths, and an oversized loft, this home offers space and style. The split 3-car garage and desert landscaping add to its appeal. Inside, enjoy light-filled living and family rooms with neutral paint, plush carpet, and wood-look flooring. The gourmet kitchen boasts granite counters, recessed lighting, a wine rack, stainless steel appliances, double ovens, a gas cooktop, and a center island. Upstairs, a huge loft and 3 bedrooms await, including the main suite with a walk-in closet and luxurious ensuite. Outside, relax in your backyard oasis with travertine pavers and a sparkling pool. Don't miss this exceptional home!

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31817 N 124th Drive Peoria, AZ 85383

New

$540,000

4 Beds

2.5 Baths

1,967 SqFt

Status Active

MLS # 6802538

Property Type Single Family Residence

Price Type --

View Lot! Fall in LOVE with this 4-bed+den, 2.5-bath home in Mystic at Lake Pleasant Heights! Over $50k in upgrades! Wood shutters, chic light fixtures, EXTENDED GARAGE, 8' doors & more. Designed for everyday living & entertaining, the great room has 10' sliding doors that open to breathtaking mountain & desert views! Impressive kitchen boasts GE Cafe matte black appliances w/ gas stove, slab panel cabinets w/ 42'' uppers, quartz counters & farm sink. The main bedroom has a garden door exit and ensuite with dual sinks, step-in shower, linen cabinets, & toilet closet. Enjoy the Mystic lifestyle w/ Rec Center, heated pool, play areas, and trails nestled in the foothills by Lake Pleasant Park. Nearby Lake Pleasant Towne Center offers shopping and dining, and loop 303 provides easy access! Secondary bathroom is a Jack & Jill, and the open den is perfect for an office, home gym, or play room. Most bedrooms have walk-in closets, and there's ample storage throughout the home. This one is almost new, and there's huge value compared to a new build. The home has been lightly lived in, well maintained, and thoroughly enjoyed. What's not to love? Make this rare find yours today!

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3131 N Central Avenue Unit 3022 Phoenix, AZ 85012

$540,000

2 Beds

2 Baths

1,125 SqFt

Status Active

MLS # 6619473

Property Type Apartment

Price Type --

*Construction Completed* 5% BUYER INCENTIVE! Introducing Edison Midtown Phase 2 with 60 new construction condominiums. This spacious two bedroom condo offers ten ft. ceilings, an open floor plan, and large master bedroom with ensuite bathroom. Chefs kitchen offers expansive cabinetry, quartz countertops and stainless steel appliances including a gas range. Edison Midtown features incredible amenities for that perfect Urbanite lifestyle. A beautiful pool and lap pool, 2000 sq. ft. fitness center and lounge, and gated parking garage.

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9120 W Roma Avenue Phoenix, AZ 85037

$540,000

4 Beds

2.5 Baths

2,579 SqFt

Status Active

MLS # 6651100

Property Type Single Family Residence

Price Type --

Seller is offering $5,000 in closing cost assistance! Essentially Brand New, 4BR + Den + Loft, 2.5BA, 2-story home located in a gated community. This amazing home has all brand new carpeting, a large open Great Room, including separate den, 1/2 bath, tons of storage areas downstairs. The kitchen features stone countertops, breakfast bar, gas range/stove top, microwave, dishwasher, refrigerator and upgraded cabinets. The large master suite has a walk-in closet, double sink vanity and large shower. Gated community for privacy. Easy to maintain desert landscaping, covered patio and backyard is beautifully landscaped with pavers, stone and plants. Lots of the newest technology, for your convenience/safety. Easy access to the 10 and 101 freeways, close to shopping/restaurants and sports venue

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427 Leisure World -- Mesa, AZ 85206

$540,000

3 Beds

2 Baths

2,751 SqFt

Status Active

MLS # 6682029

Property Type Single Family Residence

Price Type --

New windows East side and South side of home 10/24. NEW ROOF with warranty 2023. NEW HVAC with warranty 12/2023. Cherry wood cabinets with crown moulding, Stainless Steel Appliances & reverse osmosis. A CHEF'S DREAM KITCHEN! Finished AZ Room with BRAND NEW A/C unit & wetbar inclluding granite countertops,Crown moulding throughout, Hardwood flooring where it really counts, Bay window in the kitchen with window seat, extensive travertine tile in both bathrooms w/Cherry wood vanities and granite tops. Office w/ built-in shelving and desks in 3rd bedroom. Epoxy sealed, extended length 2.5 car, AIR CONDITIONED garage with utlility sink. Too much to list! 36 holes of golf, Dog Park, pickleball, tennis courts and more!.

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