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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11453 W Nadine Way Peoria, AZ 85383

$540,000

3 Beds

2 Baths

1,678 SqFt

Status Active

MLS # 6746738

Property Type Single Family Residence

Price Type --

Located in Vistancia Village, this beautiful home features an open floor plan with 3 beds and 2 baths. Amazing kitchen with a gas stove, white cabinetry, a convenient pantry, and a huge island. Enjoy informal and formal dining areas. Experience the seamless flow of the open living concept, where the living room showcases 12-ft sliding glass doors, seamlessly connecting indoor and outdoor spaces. The primary bath has a dual sink vanity, an expansive shower, and a generously sized closet. Beautiful backyard, features a covered patio, low maintenance turf and pergola.

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5036 E Roy Rogers Road Cave Creek, AZ 85331

$540,000

3 Beds

2 Baths

1,656 SqFt

Status Active

MLS # 6761155

Property Type Single Family Residence

Price Type --

This cute home opens into the great room , you have an open den and three bedrooms New laminate flooring & New carpet in bedrooms . New stainless appliances in kitchen &b a great walk in pantry in kitchen. .Storage cabinets in garage

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1106 N Palm Street Gilbert, AZ 85234

$540,000

3 Beds

3 Baths

2,142 SqFt

Status Active

MLS # 6799022

Property Type Single Family Residence

Price Type --

This gorgeously remodeled home has been totally updated. All flooring replaced with luxury vinyl plank and new taller baseboards , Light and bright kitchen with new cabinets, large Island, quartz counter tops, appliances, fixtures and lighting. Bathrooms totally gutted and redone from the ground up...cabs, sinks, toilets, shower, faucets, lights. Beautiful plantation shutters everywhere. There is a LR/game room downstairs with wet/bar kitchenette, farmhouse sink, built in hotplate in countertop and microwave. Also a spacious bedroom suite downstairs with darling updated bathroom. 3rd bath is a half bath off the spacious laundry. Roof replaced 2019. New exterior paint in 2024. Water heater new in 22. Super big back yard! NO HOA! garage wired for tesla, tesla charger does not convey. RV gate and extra parking slab. Could use downstairs for a mother-in-law suite. A really great floorplan. Also a neighborhood park one street over. Farmhouse sinks. Wood beams in bonus room. Doggie door. Large closet under stairs.

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2313 E Gondola Lane Gilbert, AZ 85234

$540,000

3 Beds

2 Baths

1,708 SqFt

Status Active

MLS # 6768124

Property Type Single Family Residence

Price Type --

Nice affordable home in Val Vista Lakes! An opportunity to buy a home in an upscale community without breaking the bank... This is a Ryland Carmel plan, with the separate office up front. New electrical box in 2023, and new A/C unit in summer 2024 (with a 15.8 SEER rating). New kitchen appliances, and new faucet hardware all around.

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15898 S 177th Drive Goodyear, AZ 85338

$540,000

2 Beds

2 Baths

2,139 SqFt

Status Active

MLS # 6775942

Property Type Single Family Residence

Price Type --

Nightly sunsets and mountain views at this private backyard in the sought after 55+ Active Community of CantaMia located in Estrella Mountain. This home boasts many upgrades including Casita with AC currently used as a home gym, but can also be used as a guest suite, hobby room, or office. Private interior courtyard with pavers, multi-slide door off the great room to enjoy indoor/outdoor living, super shower primary bathroom, 9'+ ceilings throughout, and quartz countertops throughout home. Kitchen upgrades include soft close cabinets, pots & pans drawers, roll outs at all base cabinets, lazy susan corner cabinet, recycle center, and water filtration system at sink. Other upgrades include Adobe Home Safety System, indoor & outdoor surround sound system, double interior doors at the Den (close the doors and use as a guest room, hobby room, or office), ceiling fans throughout, pre-plumbed for garage utility sink, apoxy garage flooring, gas line installed for outdoor kitchen, and water softener system.

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13672 W Chaparosa Way Peoria, AZ 85383

$540,000

4 Beds

2.5 Baths

2,344 SqFt

Status Active

MLS # 6776614

Property Type Single Family Residence

Price Type --

Wonderful 4-bedroom home with no neighbors behind! Exquisite curb appeal, 2-car garage + extended driveway, cozy porch, and low-care front yard w/mature trees. Immaculate interior features a carpeted living room, two-tone paint, fire sprinklers, and a powder room w/pedestal sink. Chef's kitchen showcases a center island w/breakfast bar, granite counters, wood cabinetry, stainless steel appliances, and recessed lighting. Continue upstairs to discover a large loft with endless entertainment possibilities! Beautiful owner's suite boasts a private bathroom with a separate tub/shower, dual sink vanity, and a walk-in closet. The oversized backyard sports a covered patio, lovely pavers, a view fence, and so much space for a pool, grass, etc. A move-in ready gem!

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16638 W Rincon Peak Drive Surprise, AZ 85387

$540,000

2 Beds

2 Baths

1,894 SqFt

Status Active

MLS # 6779465

Property Type Single Family Residence

Price Type --

Stunning Borgata floorplan home in Sun City Grand 2 bed 2 bath w/Den split bedroom floorplan. Private front courtyard w/kool decking. Front and back security screen doors, Shutters throughout, Tile on the diagonal, Bay at breakfast nook, rollout shelving, stainless appliances and Granite Counter tops. Built in media wall w/fireplace at great room. Carpet at bedrooms and den. Master bedroom bay window, Master bath double sinks & walk in shower. Laundry room cabinets. The extended covered patio has a east exposure, water feature, built in green egg charcoal grill and built in natural gas grill and abundant vegetation for a beautiful oasis style backyard. The garage has built in cabinets and workbench. You don't want to miss out on this beautiful home!

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4924 S Charger -- Mesa, AZ 85212

$540,000

4 Beds

3 Baths

2,242 SqFt

Status Active

MLS # 6787922

Property Type Single Family Residence

Price Type --

Beautiful 4 bedroom (3 upstairs, 1 downstairs), 3 bath (1 full bathroom downstairs), loft, & 3 car garage with full driveway. Washer, Dryer, and Fridge included! All front landscaping watered/maintained by HOA. There is a nice sized patio yard with grass area. Main floor leads you into an open great room and kitchen featuring upgraded cabinets, large island, granite counters, & stainless appliances. The multi panel glass slider brings in a lot of natural light. Upstairs is the spacious primary bedroom suite including a large shower, dual sinks, massive walk in closet! There is also a large loft that can be used as a flex space or an office, Don't miss out on this fantastic home in a highly sought after community!

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1941 W Topeka Drive Phoenix, AZ 85027

$540,000

4 Beds

3 Baths

2,366 SqFt

Status Active

MLS # 6789436

Property Type Single Family Residence

Price Type --

A charming 4 bed, 3 bath residence in Green Meadows is now for sale! Featuring a sizeable front yard, a welcoming front porch, and an RV gate, it's sure to be the home for you! Inside you will find formal dining, plantation shutters, and neutral palette throughout. Continue into the family room, showcasing a fireplace to keep you warm during the coming winter months. The kitchen is comprised of white cabinetry w/crown moulding, granite counters, stainless steel appliances, and a breakfast bar. End your day in the primary bedroom w soft carpet, private outdoor access, a walk-in closet, and a lavish ensuite w dual sinks & a garden tub. ** Seller is offering a significant credit towards flooring or closing costs with full-priced offer!! ** Also including an large backyard w/a covered patio where you can spend a relaxing evening, this home is a true gem! Act now before it's gone!

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19950 W Heatherbrae Drive Litchfield Park, AZ 85340

$540,000

3 Beds

2.5 Baths

1,899 SqFt

Status Active

MLS # 6792514

Property Type Single Family Residence

Price Type --

Assumable VA Loan at 2.875%! Welcome home to the highly sought-after community of Verrado with community parks, pools, and gyms! This home has been beautifully designed and upgraded, from the extended garage; almost 22 feet with epoxy garage floor coating to the extended back patio and completed backyard. The chef kitchen offers a walk in pantry, gas cooktop and stainless steel appliances that seamlessly flows into the great room and dining area, creating an inviting space perfect for entertaining and gatherings. The primary bedroom serves as a luxurious retreat, boasting dual sinks, a large walk in shower, and custom closet that ties into the laundry room for added convenience. The secondary bedrooms are connected with a large jack and Jill bathroom and both have large walk in closets. The flooring is all upgraded luxury vinyl plank, no carpet anywhere in the home! Security cameras will convey with the home. The PAID OFF Solar completes this gem of a home perfectly. Wired for EV charger with 220 volt in garage. Water Softener. Upgraded cat 6 cable for tv in living rooms room and primary bedroom. Smart lights, and security system. You will not want to miss out on all this home and neighborhood have to offer!

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9209 E Emerald Drive Sun Lakes, AZ 85248

$540,000

2 Beds

2 Baths

1,676 SqFt

Status Active

MLS # 6794115

Property Type Single Family Residence

Price Type --

This fully remodeled home is sure to please even the pickiest of buyers. Attention to every detail! New kitchen soft close cabinets, quartzite counters, appliances. New lights, fans, updated bathrooms, new laminate floors. You will love all the drawers in the bath vanities! Rain shower heads and removable shower heads. Skylights add to the light and brightness of this home. Wonderful split floorplan for privacy. New epoxy garage floor. Water softener not used by current owner and is as is. Home has electric & gas at the range & the dryer. Reverse osmosis and water softener. New hot water heater. Easy maintenance desert landscaping. Nothing to do but move in! This popular adult community has a ton of activities and additional facilities you can use for small fees, like pickleball courts et

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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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