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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17586 W Blue Sky Drive Surprise, AZ 85387

$514,995

4 Beds

2 Baths

2,220 SqFt

Status Active

MLS # 6794255

Property Type Single Family Residence

Price Type --

You'll find plenty to love about the Raleigh plan! The center of the home boasts a large kitchen with a convenient center island and walk-in pantry, which flows into an open-concept dining nook and great room. The owner's suite is adjacent, with a private bath and a walk-in closet. There are two bedrooms and a bath off the great room and off the entry is a private study that can be optioned as a dining room. Include a fourth bedroom in lieu of garage storage space, a gourmet kitchen, butler's pantry or tech center, and deluxe owner's bath. Includes covered patio!

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27969 N 176th Avenue Surprise, AZ 85387

$514,995

4 Beds

3 Baths

2,220 SqFt

Status Active

MLS # 6795361

Property Type Single Family Residence

Price Type --

The Raleigh Plan offers a spacious, open-concept layout featuring a gourmet kitchen with quartz countertops, a center island, and a walk-in pantry. The kitchen flows into a bright dining nook and great room, perfect for entertaining. This home includes a roomy primary suite, three additional bedrooms, and three full bathrooms. Enjoy 10' ceilings, gas appliances, extra garage storage, and a covered patio for outdoor relaxation. A perfect blend of style, comfort, and modern convenience!

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5536 W Thurman Drive Laveen, AZ 85339

$514,990

3 Beds

2.5 Baths

2,507 SqFt

Status Active

MLS # 6707102

Property Type Single Family Residence

Price Type --

Welcome to this stunning newly constructed single-story home offering a perfect blend of modern convenience and classic design. There's plenty of curb appeal with a Spanish elevation. Boasting 2,507 square feet of meticulously designed living space. This home features a spacious foyer, split floor plan, and open concept with 8 foot interior doors. There are three bedrooms, two and a half bathrooms, and a den. Wood look tile floors are featured throughout for stylish look and easy maintenance with plush carpet in the bedrooms and den. The kitchen features a large island, massive walk in pantry, grey granite countertops, gas range, white tiled backsplash and 36 inch upper espresso cabinets. The primary bedroom in the back of the home offers a spacious and private retreat. The 3-car tandem garage offers ample parking or storage. Right now, Ashton Woods is pleased to include ALL APPLIANCES in this home, making your move-in process seamless. You'll find stainless steel dishwasher, stove, and refrigerator in the kitchen, and matching washer-dryer in the well-appointed laundry room. Window treatments and garage door opener also included! Don't miss out on making this residence yours. Completion is on track for June 2024. Schedule a tour today. Located right off the new Loop 202 and Elliot. Great location close to dining, freeways, parks, and entertainment.

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7736 W Mockingbird Way Florence, AZ 85132

$514,990

2 Beds

2.5 Baths

2,474 SqFt

Status Active

MLS # 6796734

Property Type Single Family Residence

Price Type --

Up to 3% of Base Price or total purchase price, whichever is less, is available through preferred lender.'' Lifestyle is around every corner of this community. Enjoy all the amenities that you have come to expect in 55+ living. This home is a must see with an estimated completion in spring 2025.

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20306 W Turney Avenue Buckeye, AZ 85396

$514,990

3 Beds

2 Baths

1,416 SqFt

Status Active

MLS # 6755185

Property Type Single Family Residence

Price Type --

Live life to the fullest at K. Hovnanian's® Four Seasons Victory at Verrado, a 55+ community!! This home is our beautiful Clyde floorplan expertly designed with our Loft look designer curated interior. Your sophisticated kitchen is appointed with a large island, quartz countertops with a subway tile backsplash and GE profile stainless steel appliances with wall oven. Enjoy your beautiful great room with coffered ceiling and 7.25'' baseboards throughout. Additional upgrades include pendant lighting, ceiling fans, 2'' blinds and Owned Solar!!! ^^^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.

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17703 W Southgate Avenue Goodyear, AZ 85338

$514,990

4 Beds

2.5 Baths

2,343 SqFt

Status Active

MLS # 6794410

Property Type Single Family Residence

Price Type --

BThe spacious BRAND-NEW single-story Amber boasts 4 bedrooms, 2.5 baths, 3 car garage and open concept great room, kitchen and dining area. The covered front porch and back patio are perfect for entertaining! This home umber cabinets with white/grey granite countertops, wood-look tile flooring with multi-tone carpet! El Cidro is now selling in Goodyear and will feature a playground, ramadas and picnic table. Each of our homes is built with innovative, energy-efficient features designed to help you ENJOY more SAVINGS!

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21171 E Stirrup Street Queen Creek, AZ 85142

$514,990

3 Beds

2 Baths

1,505 SqFt

Status Active

MLS # 6799075

Property Type Single Family Residence

Price Type --

Home, sweet home! Take pride in residing in this beautiful 3-bedroom haven in Queenland Manor! Discover a large open floor plan that maximizes space and provides multiple windows, neutral paint, and wood-look flooring throughout. The spotless kitchen displays recessed lighting, a convenient pantry, plenty of cabinets, stainless steel appliances, a center island with a breakfast bar, subway tile backsplash, and quartz counters. Continue onto the romantic primary retreat to find a lovely bay window and a trending barn door to the ensuite comprised of dual sinks, soaking tub, and a mirrored door closet. Serene backyard promises endless summer fun, complete with a covered patio and a swimming pool with water feature. Don't miss this one-of-a-kind gem!

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13170 W Chaparosa Way Peoria, AZ 85383

$514,990

3 Beds

2 Baths

2,067 SqFt

Status Active

MLS # 6778479

Property Type Single Family Residence

Price Type --

Amazing opportunity to live in the highly desirable Vistancia community with its pools, parks, golf, and proximity to nature! Home built in 2007 and remodeled in 2019 with over $50,000 in upgrades including huge gourmet kitchen with marble tile backsplash and granite countertops, updated bathrooms, water softener, new lighting, pavers in backyard, new artificial turf plus pergola and so much more! Come tour this light and bright home! The family room is super sized for all your entertainment needs!

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6543 E Norwood Street Mesa, AZ 85215

$514,990

3 Beds

2 Baths

1,762 SqFt

Status Active

MLS # 6781757

Property Type Single Family Residence

Price Type --

NORTH EAST MESA LOCATION, COMPLETELY TURN KEY HOME ON GOLF COURSE! Updates galore on the 9th hole of Camelot Golf Course! Enter & find wood laminate throughout the main spaces plus a picturesque view from the living & dining rooms. Kitchen features quartz countertops, beautiful marble backsplash, stainless appliances, updated cabinets, breakfast bar & nook. Cozy up by the fireplace in the family room right off the kitchen. Both bathrooms have been fully updated with new flooring, vanities & tile surrounds. Head out back to find a private entertaining space with covered patio, grass area & golf course! Minutes away from the 202 that will take you west to shopping, ASU & airport. Scenic Red Mountain with hiking/biking trails just minutes a

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2526 W Woburn Lane Phoenix, AZ 85085

$514,900

3 Beds

2.5 Baths

2,293 SqFt

Status Active

MLS # 6796556

Property Type Single Family Residence

Price Type --

Amazing Two Story Home that Offers 3 Bedrooms, 2.5 Baths, Office, Living Room, Family Room and Formal Dinning Room. Close to Schools, Shopping and Freeway. The Seller is offering 2% concessions towards Buyers closing costs. Currently, the Seller in remodeling the Home.

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10209 W Jessie Lane Peoria, AZ 85383

$514,900

3 Beds

2 Baths

1,968 SqFt

Status Active

MLS # 6769895

Property Type Single Family Residence

Price Type --

Welcome to your dream home! This beautifully maintained property offers a spacious open floor plan, filled with natural light and modern finishes throughout. The kitchen boasts stainless steel appliances, perfect for both daily living and entertaining. Enjoy the versatility of a separate den and game room, offering additional spaces for work or play. Step outside to your private backyard oasis, featuring a sparkling pool, above ground spa and a covered patio, ideal for relaxation or gatherings. With generously sized bedrooms and updated bathrooms, this home provides comfort and style. Conveniently located in a desirable neighborhood, close to local amenities—this is a must-see! Includes a $10,000 credit at closing for floor coverings.

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15137 W Pierce Street Goodyear, AZ 85338

$514,900

4 Beds

2.5 Baths

1,897 SqFt

Status Active

MLS # 6782598

Property Type Single Family Residence

Price Type --

This stunning home in Estrella Commons boasts 4 bedrooms and 2.5 bathrooms across 1897 square feet, featuring an expansive great room and split bedroom design. The kitchen is equipped with grey shaker-style cabinets, Quartz countertops, a chic subway tile backsplash, black stainless steel appliances, including a gas range with five burners, as well as a walk-in pantry, and an island complete with a breakfast bar and pendant lights. Sliding doors from the great room open to a covered patio and a backyard with lush grass, perfect for children and pets. The master bedroom includes a walk-in closet and an attached bathroom with a dual-sink vanity, plus a separate bathtub and shower. Additional highlights are the unique wall treatments, premium plank tile floors in the living spaces and baths, a spacious laundry room outfitted with cabinets, a gated front courtyard with shade covering, and a large two-car garage complemented by a paver-lined driveway.

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