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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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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6286 S Dean Road Buckeye, AZ 85326

$514,900

3 Beds

2 Baths

1,639 SqFt

Status Active

MLS # 6777790

Property Type Single Family Residence

Price Type --

Modern comfort on a quiet private street. This open floor plan concept has stainless steel appliances with a large kitchen island and rear covered patio sitting on over an acres! Conveniently located close to Sundance & Canyon Trails Towne Centers, schools, parks, and shopping, golf and more! Est. completion date Feb. 2025.

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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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903 E Campus Drive Tempe, AZ 85282

$514,900

4 Beds

2 Baths

1,655 SqFt

Status Active

MLS # 6789844

Property Type Single Family Residence

Price Type --

Check out this stunning 4 bed 2 bath home in highly desirable Tempe! Brand new flooring throughout the house, new hardware, paint, kitchen cabinets, countertops and more. So close to ASU and Downtown Tempe this one will not last long!

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12200 E Chevelon Trail Gold Canyon, AZ 85118

$514,900

4 Beds

2 Baths

1,945 SqFt

Status Active

MLS # 6670725

Property Type Single Family Residence

Price Type --

Like new open and split floor plan built in 2022 with a three car garage! This super efficient home was built with new technology to keep the home super air tight for much lower electric bills. Within this great new community of Peralta Canyon you have access just a short walk away to Pickle Ball Courts, BBQ areas, playgrounds, Corn Hole boards, horse shoe pits, fire pit, basketball court, exercise stations, and much more! Located off Peralta Trail you are right near the Superstition Tonto Forest with access to many hiking trails, mountain biking trails, off roading trails, and tons of mountain and desert views! This home has very nice upgraded finishes with a backyard blank slate for you to make it exactly how you would like.

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745 E Megan Street Chandler, AZ 85225

$514,900

3 Beds

2 Baths

1,861 SqFt

Status Active

MLS # 6739618

Property Type Single Family Residence

Price Type --

** REDUCED ** Central Chandler location, This 3 Bedrooms and 2 full back home, with Formal Dining and Formal Living rooms, Large Kitchen with Spacious Family room, Stainless steel appliances, Fridge/Washer/Dryer included. Large backyard great for entertainment. North Facing.

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18001 N 43rd Way Phoenix, AZ 85032

$514,900

3 Beds

2 Baths

1,720 SqFt

Status Active

MLS # 6762465

Property Type Single Family Residence

Price Type --

LARGE LOT, NO HOA, RV PARKING! Bring your vision and creativity to this well-maintained gem! Ideal for first-time buyers or investors, this home sits on a spacious corner lot in a peaceful neighborhood with mature trees. It features great curb appeal with freshly painted exteriors and a backyard updated with new irrigation system, pavers and gravel, plus room for an RV gate. Key updates include a new HVAC and plumbing system (2023), roof (2019), and windows (2017). Inside, you'll find fresh paint, tile flooring, and newer appliances. With strong bones and room for interior upgrades, it's ready for your touch. Located in the PV School District, close to PV High School, Desert Ridge, Kierland, 51 and the 101.

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235 S Monterey Street Gilbert, AZ 85233

$514,900

3 Beds

2 Baths

1,418 SqFt

Status Active

MLS # 6761918

Property Type Single Family Residence

Price Type --

SUPER CUTE 3 BR PLUS DEN HOME JUST MINUTES FROM THRIVING DOWNTOWN GILBERT! MATURE LANDSCAPING AND SYNTHETIC GRASS GREETS YOU AT THE CURB. ENTER INTO GREAT ROOM FLOORPLAN WITH UPGRADED VINYL FLOORING ALL OPEN TO BEAUTIFUL KITCHEN WITH GORGEOUS GRANITE, TILED BACKSPLASH AND LARGE PANTRY. THE PRIMARY BEDROOM OFFERS PLENTY OF ROOM AND THE UPDATED BATHROOM WITH TILED SHOWER IS SURE TO IMPRESS. STEP OUT BACK ONTO COVERED PATIO OVERLOOKING FENCED REMODELLED POOL AND SYNTHETIC GRASS, ALL VERY PRIVATE. THE DEN/OFFICE COULD WORK AS A 4TH BEDROOM. THE ROOF AND AC ARE NEWER AND THE BLOCK CONSTRUCTION MAKES FOR A VERY ENERGY EFFICIENT HOME. DON'T MISS THE HUGE LAUNDRY ROOM IN GARAGE, LARGE ENOUGH FOR A SMALL SHOP. SELLERS ARE BEING RELOCATED AND HATE TO LEAVE THIS AMAZING HOME IN PERFECT LOCATION.

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2726 N Ricardo -- Mesa, AZ 85215

$514,900

3 Beds

2.5 Baths

1,752 SqFt

Status Active

MLS # 6767261

Property Type Single Family Residence

Price Type --

Welcome to your dream home in the heart of East Mesa! This beautiful 1,752 sq ft residence sits on a corner lot & features an open floorplan, perfect for seamless living and entertaining. The updated kitchen is a cook's dream, with modern appliances and plenty of counter space. Don't forget the 3 car garage with additional door that passes through to the backyard! Step outside to your private oasis, ideal for hosting gatherings or relaxing under the Arizona sun. With energy-efficient solar panels, you'll enjoy lower utility bills, and best of all—no HOA! Located in a vibrant, friendly community near parks, shops, and more, this home offers the perfect blend of comfort and convenience.

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