Investing in a Vacation Property? Learn What You’ll Need to Have to Get A Mortgage Approved

Investing in a Vacation Property? Learn What You'll Need to Have to Get A Mortgage ApprovedWith 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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6803 W Winston Drive Laveen, AZ 85339

$534,999 - 3Br/2Ba -  for Sale in Mcclellan Ranch Parcels 2b & 3b, Laveen
Open House
New
$534,999
3 Beds
2 Baths
1,993 SqFt
Status Active
MLS # 6800884
Property Type Single Family Residence
Price Type --
Welcome to this gorgeous 3-bedroom, 2-bath meticulously cared for home offering 1,993 square feet of luxurious living space. As you step inside, you're greeted by a welcoming entryway, with a versatile office or den conveniently located to the right. This cozy, private space is ideal for a home office, library, or personal retreat, offering a quiet escape just steps from the main living areas. The open layout is perfect for entertaining, featuring a custom fireplace with built-in shelving and a stunning stone finish, which serves as the focal point of the living area. The kitchen boasts custom cabinetry with pullouts, an extended coffee bar, and sleek granite countertops, making it a true chef's delight. The adjacent walk-in pantry provides ample storage, and the stove offers both electric and gas hookups for cooking versatility. The primary suite offers a luxurious retreat, featuring a stunning walk-in tile shower that's every homeowner's dream. This spacious shower is beautifully designed with high-quality tile work and an upgraded rain shower head that provides a soothing, spa-like experience. With its elegant fixtures and thoughtful details, this shower transforms your daily routine into a luxurious escape right in the comfort of your home. This home combines style and comfort, featuring upgraded 8-foot doors and an advanced multi-zone HVAC system with a powerful air handler and precision dampers in the ductwork. Each zone offers customized climate control for your ideal temperature year-round, with an attic ventilation fan to ensure fresh air circulation and consistent comfort. Automatic blinds on the west side add a touch of luxury, while premium light fixtures bring warmth and sophistication to every room. Whether you're relaxing in the living room or unwinding in the bedroom, this home is designed to keep you in comfort and style at all times. With exceptional curb appeal, this home boasts a beautifully landscaped front yard and a stunning paver pathway that creates a warm and inviting entrance. The thoughtfully designed landscaping enhances the exterior, providing a serene outdoor space to enjoy year-round. The expansive backyard offers plenty of room for relaxation, play, or entertaining, making it perfect for gatherings with family and friends. Additionally, this property features a spacious 2.5-car garage and a convenient gas stub for a grill on the southwest side. With a 14-panel solar array, a tankless water heater, and meticulous attention to maintenance, this home seamlessly blends elegance, efficiency, and ease of living. This home offers an elevated lifestyle with everything you need for modern living and more. Don't miss out.

7862 N 80th Avenue Glendale, AZ 85303

$534,990
5 Beds
3 Baths
2,082 SqFt
Status Active
MLS # 6762640
Property Type Single Family Residence
Price Type --
Nestled in Glendale, this spacious single level home with 5 bedrooms will be ready for an Est Jan. 2025 move-in! Designed with our Loft inspired interior selections. The open kitchen boasts a walk-in corner pantry, 42'' cabinets, and quartz counters. The expansive great room, with its vaulted ceiling, creates an inviting space for entertaining. Enjoy a tranquil oversized primary suite with a private entry and generous walk-in closet. Beautiful faux wood tile enhances the living areas, while cozy carpet in the bedrooms adds warmth. Don't miss this perfect blend of style and comfort! ^^Short/long term interest rate buydowns available when choosing our preferred Lender. Additional eligibility and limited time restrictions apply.

610 E Aurora Drive San Tan Valley, AZ 85140

$534,990
4 Beds
3 Baths
2,144 SqFt
Status Active
MLS # 6774531
Property Type Single Family Residence
Price Type --
Almost complete! CORNER LOT! This Pasadena split plan home includes 4 bedrooms, den and 3 baths. Designed with our beautifully curated Classic inspired interior selections. The open great room features a stunning vaulted ceiling and a multi-panel slider that opening to the large patio and backyard perfect for indoor/outdoor living. The kitchen features grey cabinets with satin nickel hardware, sparkling quartz counters and beautiful pendant lighting over the island. The den is ideal for working from home or a quiet retreat. The primary suite includes a generous walk-in closet and a resort like bath with free-standing soaking tub and large shower. This home is not to miss, plan your visit today!!! ^^Up to 2% of Loan Amount can be applied towards closing cost and/or short-long term interest rate buydowns when choosing our preferred Lender. Additional eligibility and limited time restrictions apply.

4405 N 203rd Avenue Buckeye, AZ 85396

$534,990
3 Beds
2 Baths
1,416 SqFt
Status Active
MLS # 6786223
Property Type Single Family Residence
Price Type --
Welcome to Victory at Verrado a community for those 55 or better!! Nestled in the coveted Victory at Verrado Active Adult community, this stunning Clyde plan home blends farmhouse charm with modern elegance. Relax on the cozy front porch while soaking in breathtaking views of the White Tank Mountains and Roma Park. The chef's kitchen shines with a large island, quartz countertops, subway tile backsplash, and GE Profile stainless steel appliances. The great room, highlighted by a coffered ceiling, is perfect for entertaining. A serene home office offers space for hobbies or reading. The Primary Suite boasts a spa-like bath and spacious walk-in closet. Extras include pendant lighting, ceiling fans, blinds, and owned solar panels. ^^^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.

7914 N 80th Avenue Glendale, AZ 85303

$534,990 - 5Br/3Ba -  for Sale in Ambra, Glendale
Open House
$534,990
5 Beds
3 Baths
2,082 SqFt
Status Active
MLS # 6761645
Property Type Single Family Residence
Price Type --
Welcome to Ambra conveniently located in desirable Glendale, minutes to shops, restaurants, entertainment and the 101 Hwy! This Orinoco plan home is beautifully designed with our curated Loft inspired interior selections. The kitchen features 42'' white cabinets with brushed nickel hardware, quartz countertops, and convenient breakfast bar. The great room is perfect for relaxing or entertaining. The split floorplan makes the primary suite a quiet retreat away from the secondary bedrooms. Beautiful faux wood tile flooring and cozy carpet in bedrooms complete this move-in ready home! ^^^Short/long term interest rate buydowns available when choosing our preferred Lender. Additional eligibility and limited time restrictions apply.

9550 E Plana Avenue Mesa, AZ 85212

$534,990
4 Beds
2 Baths
1,772 SqFt
Status Active
MLS # 6796552
Property Type Single Family Residence
Price Type --
Welcome to this beautifully upgraded home in the desirable Mesquite Canyon community of Mesa. Featuring wood look tile in the main living areas, granite countertops throughout the updated eat-in kitchen, large pantry, and sparkling subway tile backsplash. This home offers four spacious bedrooms, a stunningly updated primary bathroom, and plenty of closet space for everyone. The backyard opens to a private pool, covered gazebo seating area, easy-care desert landscaping in the front and back, and an RV gate. In a prime location, this beautiful home is located minutes from freeway access, neighborhood schools, shopping, golf, and local eateries!

2185 E Hazeltine Way Gilbert, AZ 85298

$534,990 - 3Br/2Ba -  for Sale in Adora Trails Parcel 4, Gilbert
New
$534,990
3 Beds
2 Baths
1,569 SqFt
Status Active
MLS # 6801595
Property Type Single Family Residence
Price Type --
Start living in this 3-bedroom + Den gem with an RV gate in the desirable Adora Trails community! Inviting interior boasts vaulted ceilings, tile flooring, a neutral palette, & a spacious great room ideal for gatherings. Kitchen features stainless steel appliances, granite counters, chocolate-stained cabinets, a center island with a breakfast bar, and recessed lighting. Unwind in the main retreat, complete with a private bathroom offering dual sinks, a soothing tub, and a walk-in closet. A versatile den is perfect for a media center or office. Backyard is designed for enjoyment, showcasing a covered patio, play area, and ample space for a future pool. Delight in the breathtaking mountain views and amenities such as clubhouse, numerous parks, & more. Don't miss this incredible opportunity

19039 N 90th Lane Peoria, AZ 85382

$534,990
2 Beds
2 Baths
1,855 SqFt
Status Active
MLS # 6786641
Property Type Single Family Residence
Price Type --
This beautifully remodeled 2-bedroom, 2-bathroom home in Peoria, AZ, offers a fresh, modern living experience in a highly desirable location. With stylish upgrades throughout, the home provides a comfortable and inviting atmosphere perfect for both relaxing and entertaining. Situated in a welcoming neighborhood with easy access to local amenities, parks, and major highways, this turn-key property is ideal for anyone looking to enjoy the best of Peoria living. Don't miss the opportunity to make this stunning home your own!

630 W Flintlock Way Chandler, AZ 85225

$534,900
3 Beds
2.5 Baths
1,733 SqFt
Status Active
MLS # 6786074
Property Type Single Family Residence
Price Type --
This delightful home offers a perfect blend of comfort, style and convenience in the sought-after gated community of Haven! This beauty has a 2-car garage and a cozy front porch. As you step inside to the second floor, you're greeted by an inviting living space adorned with natural light streaming through the large windows. The open floor plan seamlessly connects the living room to the kitchen, making it ideal for both everyday living and entertaining guests. The spotless eat-in kitchen includes SS appliances, enormous island, pendant lighting, granite counters, beautiful wood cabinetry, & an island with a breakfast bar. Continue onto the third level & find a main retreat featuring a full ensuite with dual sinks, a separate tub/shower, & a walk-in closet. The guest's quarter has a separate entrance & a private bathroom. Enjoy relaxing on the airy balcony or under the covered patio in the perfectly sized backyard! Easy access to a beautiful Community pool and fitness center! This fabulous abode will not disappoint!

1072 E Winged Foot Drive Chandler, AZ 85249

$534,900
2 Beds
2 Baths
1,744 SqFt
Status Active
MLS # 6794873
Property Type Single Family Residence
Price Type --
Immaculate, gorgeous home in Springfield active adult community. You will not be disappointed! This home has so many upgrades and updates! Beautiful top of the line luxury wood look vinyl flooring in all the right places. Custom crown moulding, upgraded 5'' baseboards throughout the home. Newer carpet in bedrooms. Interior of the whole home has been painted in a lovely neutral color. Granite counters in the kitchen and bathrooms. New roof in 2023! New windows in 2022. New water heater in 2021. 10 foot ceilings throughout the home. Extended 2 car garage. Owner updated all the right things! Please see upgrades list in the documents tab. Owner has meticulously maintained this home and it truly shows. This home is smoke free, pet free.

1468 E Kent Avenue Chandler, AZ 85225

$534,900
3 Beds
2 Baths
1,366 SqFt
Status Active
MLS # 6767869
Property Type Single Family Residence
Price Type --
Look at this gorgeous updated 3-bed, 2-bath home on an amazing lot! This home is turnkey & loaded with recent improvements! A new Trane HVAC unit (2019), water heater & softener, newer roof (2017), gutters, all new windows, patio door, a Therma-Tru entry door, & recessed lighting. The primary bedroom features 2 closets w/ ample space & a large bath w/ dual sinks. The guest bath has been beautifully updated w/ a modern look. Outside, enjoy a spacious backyard w/ a 12' x 14' shed, paver driveway extension, upgraded landscaping & a double door RV gate. Additional highlights include Decora outlets, exterior cameras, a remodeled fireplace, stainless steel appliances, & freshly painted interior & exterior. Don't miss this well-maintained gem!

2667 E Runaway Bay Place Gilbert, AZ 85298

$534,900
3 Beds
2 Baths
1,759 SqFt
Status Active
MLS # 6763729
Property Type Single Family Residence
Price Type --
Perfect starter home located in one of the most desired neighborhoods in Gilbert. Adora Trails has everything from walking trails to a clubhouse, gym, and community pool area. This home has all the upgrades in the right places. Owner is offering a $2500.00 carpet credit with the right offer. Too many upgrades to list. Well maintained and a blank slate for it's new owner! Hurry and submit your offers!

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