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.
Click Here to See What Your Home is Worth
3047 E Rosemonte Drive
Phoenix, AZ 85050
$541,000
3
Beds
2
Baths
2,042
SqFt
Status
Active
MLS #
6792519
Property Type
Single Family Residence
Price Type
--
Seller may consider buyer concessions.Welcome to your dream home! This property boasts a neutral color paint scheme and fresh interior paint, creating a modern and inviting atmosphere. The living room is a cozy retreat with a beautiful fireplace. The kitchen is equipped with all stainless steel appliances. The primary bedroom features a spacious walk-in closet. Outside, enjoy the covered patio overlooking a private in-ground pool. The fenced-in backyard also includes a storage shed for extra convenience. This home is a must-see with its blend of comfort and style.
40259 W Michaels Drive
Maricopa, AZ 85138
$540,995
3
Beds
2.5
Baths
2,500
SqFt
Status
Active
MLS #
6600185
Property Type
Single Family Residence
Price Type
--
Maricopa Luxury! Tray ceilings at the extended entry, huge great room, breakfast nook, large gourmet kitchen w/ quartz counters, backsplash, upgraded cabinets and 12' center meet doors to the extended patio. The owner's suite is adjacent,and boasts a generous walk-in closet and large tiled walk-in shower with rain shower head. Two additional bedrooms flank a full bath. Home also has a private study with tray ceilings and powder room nearby.
18711 E Panchito Drive
Gold Canyon, AZ 85118
$540,995
4
Beds
2.5
Baths
2,110
SqFt
Status
Active
MLS #
6782993
Property Type
Single Family Residence
Price Type
--
Welcome to the Zinc Plan in Entrada Del Oro II, Gold Canyon! This spacious 2-story, RV- home with 4 bedrooms and 2,5 baths, with the master suite and laundry conveniently located on the main floor. Designed for comfort and functionality, this home is perfect for those seeking extra space and easy access to outdoor adventures near the Superstition Mountains.
18628 E Panchito Drive
Gold Canyon, AZ 85118
$540,995
3
Beds
2
Baths
1,910
SqFt
Status
Active
MLS #
6780090
Property Type
Single Family Residence
Price Type
--
This one-story home RV Garage features 1,910 sqft. 3 bed 2 bath and a flex space. This home has a tiled shower at owners bath. South facing front. Quartz Kitchen, tile backsplash in kitchen. Entrada Del Oro in Gold Canyon, AZ, offers a variety of floor plans in a scenic location near the Superstition Mountains, off US-60 and El Camino Viejo. The community is known for its picturesque open spaces and walking trails, and it is part of the Apache Junction Unified District for schooling.
16423 W Avenida Del Sol --
Surprise, AZ 85387
$540,995
3
Beds
2.5
Baths
2,400
SqFt
Status
Active
MLS #
6700766
Property Type
Single Family Residence
Price Type
--
Beautiful Included features - Celeste Floor Plan: covered entry; an open dining area; study with double doors; a gourmet kitchen, quartz countertops, 42'' cabinets, stainless-steel appliances, walk-in pantry, double patio doors at nook, spacious great room; master bath with shower and tub; 3-car tandem garage. 10' ceilings and pavers at drive/walkway.
15453 W Cottontail Lane
Surprise, AZ 85387
$540,990
4
Beds
3
Baths
2,707
SqFt
Status
Active
MLS #
6780865
Property Type
Single Family Residence
Price Type
--
Quick CLOSE! This beautiful amazing 4 bedroom with a study + 3-bathroom single story is the perfect home, upgraded convenient electrical package, prewired for pendant light over the island, gorgeous tile flooring, Burlap Cabs, Quartz Slab, stainless steel appliances, gas range and dryer gas hookup, window coverings oversized sliding door, Smart Home and Energy Star Certified, garage door opener included just to mention a few, come see!
20316 W Turney Avenue
Buckeye, AZ 85396
$540,738
3
Beds
2
Baths
1,416
SqFt
Status
Active
MLS #
6803056
Property Type
Single Family Residence
Price Type
--
Live life to the fullest at K. Hovnanian's Four Seasons Victory at Verrado Cottages, a 55+ community in Buckeye, AZ. This beautiful Clyde plan home is expertly designed with our Farmhouse inspired interior 'Looks' collection. The spacious great room and kitchen are ideal for entertaining. The chef's kitchen with its large island, accenting pendant lighting, quartz countertops, subway tile backsplash and wall oven along with GE profile stainless steel appliances including refrigerator are perfect for hosting. The primary bedroom includes a spa like bath with dual sinks, an upgraded no step rain shower and large walk-in closet. Tile throughout most of the home, fans, blinds, paver driveway and walkway and Owned Solar are included! Don't miss this amazing home! This Home has been significantly discounted; no additional promotion may be used toward the purchase of this home. Additional terms, eligibility and limited time may restrictions apply.
199 E Taylor Lane
Cochise, AZ 85606
$540,000
3
Beds
2.5
Baths
2,052
SqFt
Status
Active
MLS #
6738745
Property Type
Single Family Residence
Price Type
--
A beautiful 2052' 4-bdrm, 2-bath home with 331' screen enclosed back porch, attached 2-car garage, a 813' detached 1-car garage with its own 1/2 bath & work area. There is a fenced-in horse coral & shelter area too all on 40 acres of land with fantastic 360-degree mountain views. This home is great for entertaining with formal living room & dining room in the front which has large windows to let all that natural light come in and a family room that has a propane fireplace that is open to the kitchen & breakfast nook in back with doors leading out to the enclosed screen porch. The Primary has plenty of room & French doors to the screened in porch. Wait to you see the sunset from there. Nice primary bathroom with double sinks, soaking tub, stand-up shower & walk-in closet. This house has a split bedroom floorplan with the guest bathroom also having a door to the screened in porch. The porch leads to a block enclosed nice sized backyard. This property has so much to offer, and it is close enough to commute to Tucson and major highways.
7940 E Camelback Road Unit 606
Scottsdale, AZ 85251
$540,000
2
Beds
2
Baths
1,708
SqFt
Status
Active
MLS #
6791269
Property Type
Apartment
Price Type
--
**Breathtaking Mountain Views in Old Town Scottsdale!** Experience stunning vistas from this exceptional sixth-floor residence, where luxury seamlessly blends with modern living. This beautifully remodeled property features two private master bedrooms, each with en-suite bathrooms and generous walk-in cedar closets, ensuring ultimate comfort and privacy. Additionally, it includes a versatile private office/den flex room, that can serve as a third bedroom, if needed. The 2 air handlers have been renewed and are in great working order. The spacious kitchen is a chef's delight, equipped with a convenient pull-out pantry, Lazy Susan base cabinets, and durable IKEA laminate countertops with stylish chrome edge trim. Top-of-the-line appliances, including a Bosch dishwasher, Frigidaire Gallery refrigerator, LG convection stove, and Panasonic microwave, make this kitchen both functional and visually appealing. Adjacent to the kitchen, the bright and inviting great room is enhanced by energy-efficient LED lighting, dimmers throughout the home, and versatile Silhouette shades on the sliding doors, allowing for excellent control over light and privacy. Double sliding doors open to a dual balcony, creating an ideal space for entertaining and enjoying the magnificent views with newer windows for a quiet experience. Retreat to the beautifully appointed bathrooms, where both master baths feature full tiling for a luxurious ambiance. Each bedroom is equipped with stylish shutters and over drapes for complete darkness, ensuring restful nights. The home boasts beautiful wood and tile flooring throughout, along with dual-pane windows for improved energy efficiency and sound insulation. Conveniently located, the residence includes two designated parking spaces (#64 and #65) right next to the door for easy access. A new circuit panel has been installed for enhanced electrical safety and efficiency. Your HOA fee covers all amenities and utilities, providing access to a wealth of facilities including golf, tennis, three heated pools, art and ceramics studios, a card room, a business center, a library, woodworking shop, his and hers gyms, a lounge, ping pong and pool tables, a variety of activities, and enjoyable happy hours. This property is a rare find in the market, located just minutes from downtown Scottsdale, which offers easy access to vibrant cultural attractions, fine dining, and the retail offerings of Scottsdale's Fashion Square Mall. Don't miss the chance to own this beautifully upgraded residence in a prestigious communitywhere stunning views and modern luxury await!
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!
19013 W Oregon Avenue
Litchfield Park, AZ 85340
$540,000
3
Beds
3
Baths
2,111
SqFt
Status
Active
MLS #
6719850
Property Type
Single Family Residence
Price Type
--
Must See!! Significant upgrades, Ideal for family and entertaining, Open Concept, Modern kitchen with quartz countertops, tiled back-splash, staggered cabinets, large walk-in pantry. Slider doors which opens to backyard, backyard kitchen, with grill, sink, flat stove, refrigerator, a place for a TV, with large bar. Cozy master, complete with modern bathroom, with his & her sinks and closets, garden tub, and tiled shower, 3 or 4 bedrm. 2 additional full baths, large laundry room. 3 car garage both with epoxy floors, built in garage cabinets in 2 car garage. Water softener, remote controlled sun blinds on covered backyard patio, Jacuzzi in backyard. This is Home!!
419 E Oxford Drive
Tempe, AZ 85283
$540,000
3
Beds
3
Baths
1,302.50
SqFt
Status
Active
MLS #
6787283
Property Type
Single Family Residence
Price Type
--
Welcome to this stunning single-level, 3-bedroom, 3-bathroom home in the heart of Tempe! Thoughtfully upgraded and meticulously maintained, this home is ready to impress its new owner. From the moment you step through the custom iron door, you'll notice the exceptional attention to detail and pride of ownership.Key upgrades include spray foam insulation in the interior walls, blown-in attic insulation with fans and a custom scuttle, epoxy-coated garage floors, and a spacious walk-in pantry.The backyard is a true entertainer's paradise, designed with care and creativity. Highlights include: 8-foot-high block privacy wall with custom LED lighting, Insulated 120 sq. ft. shed featuring corrugated steel wainscot, drink rails, lighting, TV, and AC. A gorgeous Ramada with a natural stone dual-sided propane fireplace with barn beam mantel, TV, wood fire pit with flagstone ''U'' benches, flagstone countertops with built-in propane grill, kegerator and drink rails, 1/34 bathroom with stacked slate waterfall, flagstone benches and steam shower. All this just minutes away from freeway access, Kiwanis Park, restaurants and shopping! You will LOVE this HOME!!!