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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4714 E Charleston Avenue Phoenix, AZ 85032

$512,000

3 Beds

2 Baths

1,322 SqFt

Status Active

MLS # 6791148

Property Type Single Family Residence

Price Type --

PRICE REDUCED! Beautifully updated single family home in Montaire subdivision. Open floor plan with newer kitchen cabinetry with stainless steel appliances and granite counter tops. New wood look deluxe laminate flooring in all of the bedrooms. Large tile flooring in the great room and kitchen. Master bathroom has been updated with newer cabinetry, granite counter tops and separate shower/bath tub. New HVAC in Dec. 2022. New RO system in 2023. Large capacity front load washer and dryer new in 2022. Close to Desert Ridge which has great shopping, dining, and much more. Close to highways 101 and 51 and the new PV city center.

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40467 W Michaels Drive Maricopa, AZ 85138

$511,995

4 Beds

3 Baths

2,570 SqFt

Status Active

MLS # 6718569

Property Type Single Family Residence

Price Type --

The heart of this ranch floor plan is an open layout with a great room, a breakfast nook and a gourmet kitchen with a walk-in pantry and a center island with quartz counter-tops and premium 42'' upper cabinets. The owner's suite is adjacent, and showcases a generous walk-in closet and an attached bath with double sinks and large deluxe shower. A private study, three more bedrooms and two additional baths round out the residence. Outside, a beautiful front porch and a covered patio are also included!

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40450 W Michaels Drive Maricopa, AZ 85138

$511,995

4 Beds

3 Baths

2,570 SqFt

Status Active

MLS # 6721852

Property Type Single Family Residence

Price Type --

The heart of this ranch floor plan is an open layout with a great room, a breakfast nook and a gourmet kitchen with a walk-in pantry and a center island with quartz counter-tops and premium 42'' upper cabinets. The owner's suite is adjacent, and showcases a generous walk-in closet and an attached bath with double sinks and large deluxe shower. A private study, three more bedrooms and two additional baths round out the residence. Outside, a beautiful front porch and a covered patio are also included!

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12329 W Marguerite Avenue Avondale, AZ 85323

$511,995

3 Beds

2 Baths

2,080 SqFt

Status Active

MLS # 6761319

Property Type Single Family Residence

Price Type --

The thoughtfully designed Agate plan offers an open layout showcasing a kitchen with a center island, a great room and a dining area. An adjacent primary suite includes a walk-in closet and private bath, and two additional bedrooms + a flex room to provide ample space for rest and relaxation. A tranquil covered patio is also included. You'll love the professionally curated fixtures and finishes selected by our design team!

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12326 W Marguerite Avenue Avondale, AZ 85323

$511,995

3 Beds

2 Baths

2,080 SqFt

Status Active

MLS # 6762284

Property Type Single Family Residence

Price Type --

The thoughtfully designed Agate plan offers an open layout showcasing a kitchen with a center island, a great room and a dining area. An adjacent primary suite includes a walk-in closet and private bath, and two additional bedrooms + a flex room to provide ample space for rest and relaxation. A tranquil covered patio is also included. You'll love the professionally curated fixtures and finishes selected by our design team!

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31752 N 116th Drive Peoria, AZ 85383

$511,990

3 Beds

2 Baths

1,680 SqFt

Status Active

MLS # 6799291

Property Type Single Family Residence

Price Type --

The Bluebell has 3 Br.2 baths, 2 car garage located in the scenic hills of North Peoria. Perfect for entertaining the Designer kitchen includes a gas cooktop, whole house granite countertops! 8' tall doors, tile surrounds in all baths are included features!! This home is perfect for those looking for style & luxury finishes. Mystic is an Amenity rich master planned community with a resort pool, Rec. center, year -round events, Hiking, pickleball & event lawn. PICTURES & TOUR ARE OF THE BLUEBELL MODEL. LISTING IS FOR A NEW BUILD HOME. Ghost Listing. Please verify all information with onsite agent.

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1000 W Hudson Way Gilbert, AZ 85233

$511,900

3 Beds

2 Baths

1,377 SqFt

Status Active

MLS # 6769372

Property Type Single Family Residence

Price Type --

Beautifully remodeled Gilbert home with sparkling private pool! Open floor plan features vaulted ceilings, luxury plank flooring, and designer touches throughout. Gorgeous kitchen with white cabinetry, quartz countertops, custom tile backsplash, and black stainless LG appliances including gas range. Primary suite with luxurious bath offers a double vanity with quartz countertop and custom tiled walk-in shower including ''penny tile'' floor and frameless glass enclosure. Secondary bedrooms have easy access to remodeled hall bath. Indoor laundry with Samsung front load washer and dryer included. Very private backyard offers a covered patio and pebble-tec pool. Premiere location with award winning schools and close proximity to downtown Gilbert shops and restaurants. A must see!

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809 W Lindner Avenue Mesa, AZ 85210

$511,900

4 Beds

2 Baths

1,843 SqFt

Status Active Under Contract

MLS # 6784761

Property Type Single Family Residence

Price Type --

Beautifully renovated 4-bedroom, 2-bathroom home! Every detail has been thoughtfully updated to blend contemporary style with cozy living. Updated Bathrooms: Both bathrooms have been fully upgraded with sleek fixtures, quartz counters, new flooring, and finishes. Master Suite: Enjoy the convenience of a spacious master bedroom complete with a walk-in closet and a stylish quartz vanity, and private exit to the game room (converted patio not counted in sqft). Gourmet Kitchen: Features brand-new Quartz countertops and cabinets, providing ample space and functionality for all your cooking needs. Fresh Interior: The entire home has been freshly painted in neutral tones, creating a warm and inviting atmosphere. With New doors, new hardware, and lighting. And a x-large Lot to Boot!

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31491 N Wet Creek Road San Tan Valley, AZ 85143

$511,875

4 Beds

3 Baths

3,018 SqFt

Status Active

MLS # 6795703

Property Type Single Family Residence

Price Type --

*NEW CONSTRUCTION* The Grand 5G floorplan comes equipped with the 4 bed and 3 baths, plus study downstairs and a huge loft upstairs and a covered patio— setting the scene for summer gatherings! The home features modern Quill cabinets, matte black hardware, quartz counter tops in kitchen and bathrooms and 12''x24'' porcelain tile flooring. MOVE IN READY!

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25094 N 171st Lane Surprise, AZ 85387

$511,561

4 Beds

3 Baths

2,213 SqFt

Status Active

MLS # 6762906

Property Type Single Family Residence

Price Type --

MLS#6762906 Ready Now! The Regal floor plan at Asante showcases a single-story, open-concept layout where the kitchen effortlessly flows into the great room, with a convenient dining area nearby. The primary suite features a generous walk-in closet and a beautifully designed bath, while the secondary bedrooms and bathroom offer ideal space for family living. Structural options added include; paver front porch and walkway, super shower in primary, separate tub and shower in bath three, and garage service door.

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15252 N 100th Street Unit 1134 Scottsdale, AZ 85260

New

$511,500

3 Beds

2 Baths

1,607 SqFt

Status Active

MLS # 6800987

Property Type Apartment

Price Type --

Great Scottsdale location with a plethora of restaurants, shopping, activities and outdoor recreational amenities with in walking distance. Beautiful, light, bright and spacious ground floor condo. 3 bed 2 bath. Spacious floor plan, Open kitchen with breakfast nook. and plenty of white cabinetry. Plantation shutters through out. Larger bedrooms all with double entry doors. The private primary bedroom is private with exit to one of the secluded patios, a walk in closet and an en-suite bathroom featuring dual vanity and a large luxurious tiled walk in shower.Covered parking just a few steps out the front door.Two private covered secluded patios. One of the best and quiet locations in the community with in walking distance to the pool and tennis courts. Make this your new home today! Covered parking just a few steps out your front door. 2 private covered secluded patios.One of the best and quiet locations in the community with in walking distance to the pool and tennis courts. Great community! Make this home yours while you still have achance!

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8512 N 170th Lane Waddell, AZ 85355

$511,049

5 Beds

3 Baths

2,624 SqFt

Status Active

MLS # 6778568

Property Type Single Family Residence

Price Type --

Live in your element in this beautiful Aspen floorplan! This home offers 5 bedrooms, 3 full bathrooms, and an oversized loft to accommodate any of your family's needs. This house sits on an East/West facing with gorgeous views of the white tank mountains. It's beautifully designed with white shaker cabinets, beautiful upgraded flooring throughout, along with quartz countertops and large island. Our High-Performance Homes come standard with home automation technology, a REME HALO Air Purification system and they are designed with you in mind, to stay healthier and more comfortable in your home.

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