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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24019 N 166th Lane Surprise, AZ 85387

$525,000

4 Beds

2.5 Baths

2,318 SqFt

Status Active

MLS # 6752844

Property Type Single Family Residence

Price Type --

Beautiful 4 bedroom + office, 2.5 baths, 2318 square foot, 3 car garage home located on a corner lot! Inviting kitchen with granite countertops, huge kitchen island, upgraded cabinets, pantry, gas cooking, large great room perfect for entertaining or relaxing, tile in all of the high traffic areas, beautiful master suite boasts his and hers walk-in closets, walk-in shower, water closet, dual vanities, access to the laundry room from the master bath, ample space in the secondary bedrooms, covered patio overlooks grass backyard, half bathroom is accessible from the covered patio, community greenbelt and playground around the corner, close to shopping, schools and freeways, see this home today!

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3285 N 159th Avenue Goodyear, AZ 85395

$525,000

2 Beds

2 Baths

1,678 SqFt

Status Active

MLS # 6755493

Property Type Single Family Residence

Price Type --

Charming Oakmont that overlooks the 11th green of Tuscany East with mountain views. Bumped out to add additional bonus room. Kitchen features vaulted ceiling, corian counters, updated appliances, breakfast nook & breakfast bar. Built in entertainment wall, window treatments, ceiling fans throughout, gutters, pigeon patrol wire, pergola on spacious patio, No filter / no chemical water softener & NEW ROOF underlayment (2022). Extended garage with storage cabinets & work bench. Original owner kept it well maintained. Don't miss out on this one.

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15103 W Sentinel Drive Sun City West, AZ 85375

$525,000

2 Beds

2.5 Baths

1,825 SqFt

Status Active

MLS # 6757506

Property Type Single Family Residence

Price Type --

Come set your sights on this meticulously cared for Ventana model home in Sun City West! This home is unique with its decorative wood beamed ceiling, upgraded countertops, stone accented kitchen wall, hickory alder cabinets and much more! Newer upgrades include: master carpet & pad (6 months), toilets (2023), water heater (2023), A/C unit (2021), garbage disposal (2023), garage door & opener and roof (2023)!!!

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7931 E San Miguel Avenue Scottsdale, AZ 85250

$525,000

3 Beds

2.5 Baths

1,673 SqFt

Status Active

MLS # 6778857

Property Type Townhouse

Price Type --

Welcome to your dream home neighborhood in the heart of Scottsdale. This stunning 3-story home boasts 3 bedrooms and 2.5 modern bathrooms, perfect for entertaining. Large windows in the living room flood the space with natural light and picturesque views of the vibrant neighborhood. Quartz countertops in the kitchen with sleek white cabinets add a touch of luxury. Enjoy carefree living with an HOA that covers building exterior maintenance and beautiful landscaping, allowing you to spend more time to relax in the community pool or enjoy the nearby bike and walking trails. Experience the perfect blend of comfort, modern amenities, and a vibrant community. Make this home yours today! The community is conveniently located near a dog park, Chaparral Park, scenic bike and walking trails, and provides easy access to Old Town Scottsdale, Fashion Square and other amenities. Don't miss the chance to experience this remarkable home.

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18514 W Statler Street Surprise, AZ 85388

$525,000

3 Beds

2 Baths

2,245 SqFt

Status Active

MLS # 6767579

Property Type Single Family Residence

Price Type --

Beautiful home in Surprise Farms awaits you! Nestled on a corner lot, it boasts 3 beds, 2 baths, 3-car tandem garage, and a desert landscape. Fabulous interior showcases designer paint, plantation shutters, and neutral & wood-look tile flooring in all the right places. If entertaining is on your mind, you'll LOVE the spacious great room paired with surround sound & sliding doors to the back! The impressive kitchen has SS appliances, granite counters, a tile backsplash, a walk-in pantry, recessed & pendant lighting, ample wood cabinetry, and a peninsula w/breakfast bar. Enter the main bedroom to find an ensuite with dual sinks, separate tub/shower, & a walk-in closet. One other bedroom w/a Murphy bed & built-in desk. Outback, you have a firepit, covered patio, & well-laid pavers. Just WOW!

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8010 W Adam Avenue Peoria, AZ 85382

$525,000

4 Beds

2 Baths

1,748 SqFt

Status Active

MLS # 6774012

Property Type Single Family Residence

Price Type --

Beautiful single story pool home is light and bright.. Split bedroom floorplan with separate family room and formal living/dining room. Den is bright and open, w/ French doors leading out to front patio. Jack & Jill bath connected to the other 2 bedrooms. Relax in your sparkling pool and resort like backyard. See the recent updated items list in listing.

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5031 N 81st Street Scottsdale, AZ 85250

$525,000

3 Beds

2 Baths

1,440 SqFt

Status Active

MLS # 6798266

Property Type Townhouse

Price Type --

Great location!!! On the park!!!! Close to 101 & Scottsdale Community College A lease in place with renters.

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15741 W Piccadilly Road Goodyear, AZ 85395

$525,000

2 Beds

2 Baths

1,914 SqFt

Status Active

MLS # 6769807

Property Type Single Family Residence

Price Type --

Welcome to your perfect retirement haven in PebbleCreek! This beautiful Topaz model has 2-bedroom home displays a great curb appeal highlighted by a 2-car garage, a front porch, & a desert front yard w/artificial turf. Home exudes elegance with plantation shutters, vaulted ceilings, tons of natural light, chic light fixtures, and wood-look tile flooring. You'll love the formal living & dining room w/fireplace and the inviting family room w/sliding doors to the back! The impressive kitchen boasts SS appliances, granite counters, mosaic tile backsplash, ample wood cabinets, a breakfast bar, and a cozy nook. Large main bedroom has outdoor access and an ensuite w/dual sinks & a walk-in closet. Laundry room w/built-in desk & cabinetry. Relax under the covered patio of your tranquil backyard

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21181 E Estrella Road Queen Creek, AZ 85142

$525,000

4 Beds

3 Baths

1,944 SqFt

Status Active

MLS # 6776154

Property Type Single Family Residence

Price Type --

This is the property you have been waiting for! Step inside to see the natural light pour through this home. You will be in awe of the gorgeous natural wood tone luxury vinyl flooring that leads to the stylish open living spaces. This home has thoughtful design and beautiful features in every corner. The kitchen is a dream with white cabinets, stainless steel appliances, and contemporary pendant lights over the island. The perfect blend of style and comfort. With 4-bedrooms and 3 baths this home is a desirable split floor plan and perfect use of space. Enjoy the Arizona evenings in your backyard w/natural grass, and timed drip system for plants. Near Ellsworth and Rittenhouse which is a great location with easy access to all Queen Creek has to offer.

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4613 E Briarwood Terrace Phoenix, AZ 85048

$525,000

3 Beds

2.5 Baths

1,734 SqFt

Status Active

MLS # 6776431

Property Type Single Family Residence

Price Type --

Fabulous corner lot property is the one for you! Fantastic location near parks, schools & shopping. Discover the wonderful wood flooring, stunning vaulted ceilings, & delightful light fixtures. The comfortable living/dining room, with large windows, is ideal for receiving guests. The spacious great room enjoys tile flooring, backyard access, & an inviting fireplace. The kitchen features stylish cabinets w/crown moldings, granite counters, & built-in appliances. Upstairs, the main bedroom guarantees restful nights & amazing comfort w/its large picture window & sophisticated ensuite. Host a wonderful gathering in the backyard, & let your company enjoy the relaxing covered patio, stone seating areas, & refreshing swimming pool w/a stone waterfall. Don't miss it!

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5773 W Golden Lane Glendale, AZ 85302

$525,000

4 Beds

3 Baths

1,892 SqFt

Status Active

MLS # 6777487

Property Type Single Family Residence

Price Type --

Lovely ranch-style home in the desirable Randolph Ranch is ready to welcome new owners! The bright and spacious interior boasts a welcoming living and dining room adorned with tall ceilings, soothing paint, concrete/wood-style flooring, and abundant natural light. You'll love to cook your favorite dish in the kitchen, featuring SS appliances, recessed & chic light fixtures, white shaker cabinetry, an island, a pantry, and a sun-filled breakfast nook. Discover a bonus room great for a cozy family room or a media room! Double doors open to the primary bedroom, offering a full ensuite with dual sinks, a separate tub and shower, and a walk-in closet. The private backyard has a covered patio perfect for morning coffee or afternoon relaxation. With some TLC, this gem is a dream come true!

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7066 W Eagle Ridge Lane Peoria, AZ 85383

$525,000

4 Beds

2.5 Baths

2,437 SqFt

Status Active

MLS # 6777051

Property Type Single Family Residence

Price Type --

Welcome to this beautifully updated home that combines style, functionality, and ample space. Featuring tiled flooring throughout the downstairs, and wood flooring in guest room.. A designer kitchen with 42'' cabinets, crown molding, stainless steel appliances and breakfast bar that flows into the family room with a cozy fireplace, Downstairs, a versatile den with custom cabinetry and a farmhouse sink—previously used as a craft room and homeschool space—provides flexible functionality and could easily be converted back into a fifth bedroom. The primary suite is a true retreat, complete with a private exit to an expansive balcony, a generous ensuite bathroom, and an oversized walk-in closet. Outside, enjoy a charming stone elevation, a grassy landscaped backyard large enough for a pool.

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