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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2189 William Palmer -- Flagstaff, AZ 86005

$2,275,000
4 Beds
4.5 Baths
3,525 SqFt
Status Active Under Contract
MLS # 6739906
Property Type Single Family Residence
Price Type --
Welcome to your dream home! Nestled on the #1 green of the prestigious Canyon Golf Course, this residence offers plenty of space for family and friends. With 4 roomy bedrooms each featuring private ensuite bathroom plus a convenient guest bath, this home is a rare find. A recently renovated kitchen and sleek contemporary bathrooms have been meticulously updated with tasteful care. The open-concept great room and kitchen showcase brand new wood flooring, vaulted ceiling, and a stone-faced wood-burning fireplace providing a touch of rustic mountain warmth. A climate-controlled wine room is designed to make gatherings a breeze. Air conditioning ensures year-round comfort. Step outside to the expansive deck, where you can dine alfresco while enjoying views of the golf course.

37200 N Cave Creek Road Road Unit 1125 Scottsdale, AZ 85262

$2,275,000
3 Beds
3.5 Baths
2,414 SqFt
Status Active
MLS # 6659637
Property Type Townhouse
Price Type --
Upon entering the secluded courtyard of this unique property, you immediately recognize you've discovered a remarkable place. This ground-level home, resembling a personal oasis, was built in 2020 and features an open floor plan with modern, high-end finishes throughout. Comprising 3 bedrooms and 3.5 baths, it's designed to impress at every turn. Conveniently located near the Desert Mountain Club, the residence includes private terraces that enchant both residents and guests. Perfectly situated on the third hole of the Seven Par 54 Golf Course, this home offers both luxury and accessibility.

9441 N 129th Place Scottsdale, AZ 85259

$2,275,000
5 Beds
5.5 Baths
4,462 SqFt
Status Active
MLS # 6715590
Property Type Single Family Residence
Price Type --
Discover luxury in Scottsdale with this stunning home featuring 5 en suite bedrooms and an open floor plan perfect for modern living. The spacious layout seamlessly integrates the living, dining, and kitchen areas, making it ideal for both entertaining and relaxation. Enjoy serene hikes just minutes from your door, while the renowned Mayo Clinic and BASIS school are conveniently nearby. With upscale finishes, abundant natural light, and a prime location, this residence offers both comfort and convenience in one of Scottsdale's most sought-after neighborhoods.

4528 E Montecito Avenue Phoenix, AZ 85018

$2,275,000
4 Beds
4.5 Baths
4,044 SqFt
Status Active
MLS # 6748733
Property Type Single Family Residence
Price Type --
Experience unparalleled luxury in the heart of Arcadia, within the highly coveted Hopi School district. This meticulously crafted new construction, designed by award-winning Rafterhouse, showcases elevated finishes throughout. The stunning residence features four bedrooms, each with its own private ensuite, along with four and a half bathrooms, two offices (one which could be easily converted to an additional bedroom), and a versatile flex spaces. The primary suite, backyard, and balcony offer breathtaking views of Camelback Mountain. A spacious junior primary suite on the first level provides comfortable and stylish accommodations for guests. Enjoy the convenience of walking to local favorites like LGO, OHSO, and The Global Ambassador.

3304 E Birchwood Place Chandler, AZ 85249

$2,275,000
5 Beds
4 Baths
5,366 SqFt
Status Active
MLS # 6763887
Property Type Single Family Residence
Price Type --
BEAUTIFUL RESORT STYLE BACKYARD IN VALENCIA IN SAN SEBASTIAN! ENTERTAINER'S DREAM! FEELS LIKE A COASTAL HOME. 5366 SQFT RANCH HOME WITH A GRAND STAIRCASE TO A FINISHED BASEMENT, LOCATED ON THE LARGEST PREMIUM CORNER LOT ON A CUL-DU-SAC AND BACKYARD VIEWS OF THE BEAUTIFUL PRIVATE PARK WITH A LAKE AND FOUNTAIN. THE CUSTOM LARGE OUTDOOR STRUCTURE WITH TV, HEATERS AND MISTERS IS USED ALL YEAR AROUND FOR ENTERTAINING. THE INTERIOR HOME HAS BEEN PROFESSSIONALLY DESIGNED, 5 BEDROOMS PLUS DEN, INCLUDING ONE THAT COULD BE CONVERTED EASILY INTO A CASITA ENTRANCE, 4 BATH, 4 CAR GARAGE WITH EPOXY FLOOR, 4 FIREPLACES, SUBZERO FRIDGE, WOLF RANGE, WALL OVEN AND MICROWAVE, 2 KITCHEN AID DISHWASHERS, WASHER&DRYER IN MASTER CLOSET, 6 RING CAMERAS AROUND PERIMETER, WET BAR AND WINE CHILLER, CENTRAL VAC, RO, COMPLETELY REMODELED KITCHEN WITH CUSTOM CABINETY, CUSTOMER BEAM CEILINGS. REMODELED MASTER AND MASTER BATH. $400,000 BACKYARD INCLUDING LUSH LANDSCAPE AND LARGE PALMS THROUGHOUT, OUTDOOR LIVING SPACE WITH COMMERICAL MISTERS, HEATERS, BBQ, SMOKER, CHILLER, WINE CHILLER, FIELD AREA WITH SOCCER WALL, GOLF CHIPPING AREA, TURF IN COMMON AREAS, HEATED SPA AND POOL WITH HUGE WATER FALL W/ GROTTO AND TUBE SLIDE. LOTS AREAS FOR SHADE AND SPACE FOR DINING AND LOUNGING. THIS LOT HAS A HUGE SIDE YARD FOR BUILDING ADDITIONAL GARAGE SPACE, CASITA OR PICKBALL, VOLLYBALL COURTS. ACCESS WITH DOUBLE GATES.

3021 W Feather Sound Drive Anthem, AZ 85086

$2,275,000
3 Beds
4 Baths
3,476 SqFt
Status Active
MLS # 6734505
Property Type Single Family Residence
Price Type --
Exquisite Golf Course Estate in Exclusive Guard-Gated Community Discover unparalleled luxury and elegance in this newly renovated 3-bedroom en-suite, 4-bathroom estate, nestled in multi-million dollar custom homes on an elevated premium golf course lot with breathtaking mountain views. Located in a prestigious guard-gated community boasting two championship golf courses and serene surroundings, this home offers an exceptional blend of sophistication and modern amenities with no expense spared. Key Features: Tesla Solar Panels: Embrace sustainability with state-of-the-art Tesla solar panels (owner owned), ensuring energy efficiency and cost savings, minimizing your environmental footprint. Private Pool: Relax and entertain in style with a heated resort-style pool and spa, complemented by expansive outdoor living spaces and stunning views. Perfect for relaxation and entertaining. Chef's Kitchen: Create culinary masterpieces in the gourmet chef's kitchen, equipped with top-of-the-line appliances, sleek countertops, and custom soft close cabinetry with ample storage. Guard-Gated Community: Experience peace of mind in a secure environment with 24/7 guard-gated access, ensuring privacy and safety for you and your family. Award-Winning Golf Courses: Tee off on world-class golf courses just steps from your door, perfect for enthusiasts of all skill levels and offering picturesque views. Mountain Views: Admire panoramic mountain views from multiple vantage points throughout the home including a 20' window wall, providing a tranquil backdrop to everyday life. Luxurious Amenities: Revel in the convenience of a built-in wine cellar, soft water system, newer installed A/C units, open concept floor plan, coffee bar ensuring comfort and luxury year-round. Master Suite Retreat: Retreat to the expansive luxurious master suite featuring a spa-like bathroom, oversized walk-in closet, and serene views. Three-Car Garage: Ample space for vehicles and storage in the attached three-car garage, equipped with custom cabinetry and workplace. Location: Situated in a prime location within the community, this home offers easy access to upscale shopping, dining, and entertainment options, while also providing a peaceful retreat from city life. Your neighborhood: Anthem Golf and Country Club boasts private resort style amenities including 36 holes of championship golf, pro shop, 2 clubhouses, premier dining, tennis, swimming, bocce ball, tennis, pickleball, fully equipped fitness centers, spa, yoga, and access to several hiking trails. Whether you have children or grandchildren this is the community you want to live in. From A rated schools to gorgeous parks that include fishing, playgrounds, soccer fields, baseball fields, skate park, walking/jogging paths with waterfalls and ducks. Large community center with every indoor amenity you can think of from rock climbing, ping pong, basketball and private waterpark. There's never a shortage of events, whether it's a concert in the park, football games, farmers market, or Easter Egg Hunt!! Perfect for: Ideal for discerning buyers seeking a blend of luxury, privacy, and exclusive amenities, this meticulously crafted home embodies the epitome of upscale living. Don't Miss Out: This is a rare opportunity to own a prestigious property in one of the area's most coveted neighborhoods. Situated along the 6th hole of Anthem Golf & Country Club this home is sure to impress your family and friends! don't miss out on your chance to experience the luxury and tranquility that define this exceptional residence.

18558 N 92nd Place Scottsdale, AZ 85255

$2,266,325
3 Beds
3.5 Baths
2,749 SqFt
Status Active
MLS # 6691872
Property Type Single Family Residence
Price Type --
Amazing and last opportunity for new build construction in DC Ranch. Timeless contemporary architecture-2749 sq ft-all single level, 3 bedrooms, 3.5 bathrooms home with 2 car attached garage. Oversized great room concept with stunning drop down ceiling and multi stack doors all opening towards courtyard. Brand new Camelot floor plan offering the design and livability of a larger home but right sized. Front yard landscaping design and installation is included. Buyer still can customize and select all interior finishes.

3875 S Flagstaff Ranch Road Flagstaff, AZ 86005

$2,260,000
5 Beds
4.5 Baths
3,511 SqFt
Status Active
MLS # 6742639
Property Type Single Family Residence
Price Type --
You might call this ''The Crown Jewel of Flagstaff Ranch,'' where you can see golf holes 9, 10, 13, 15 and 16 from this home! Immediately upon entering this highly upgraded home, the Picturesque Views of 5 different golf holes on Flagstaff Ranch will have you sold! Breathtaking views and the high-vaulted ceilings are complimented by the spacious, functional and captivating living area and kitchen. The kitchen boasts a double island, one of which is for entertaining and equipped with ice maker a wine fridge and the other houses a prep sink —a chef's delight! Speaking of a chef's delight, there's a 6-burner Wolf gas stove and an oversized Subzero freezer and fridge that neighbors an oversized walk-in pantry. Enjoy watching layers of golfers EVERYWHERE and beautiful Flagstaff skies from your living room or covered patio that showcase the panoramic views. Soak in Sunsets like you've never seen, while you listen to music on this home's Control 4 indoor/outdoor Sound System! You can easily access the Chuckwagon or The Turn snack shop with a quick stroll down Flagstaff Ranch Rd. Private dining room has views of the 15th and 16th holes. Ideally positioned windows all throughout the home best highlight golf course, tree and sky views all over. Caldera and Peak views also within reach. Downstairs is the Primary bedroom with fireplace and great views even in the bathroom. The bathroom is spacious with beautiful Restoration Hardware double sink and large closet...and in-floor heating to keep your feet warm! A second bedroom is downstairs, a Junior Primary Suite with wet bar and also has attached bathroom with dual sinks and shower. Rounding out the downstairs is a centrally located enclosed room with views of holes 15 and 16, which can be used as an office or kids playroom. Upstairs are three additional bedrooms, one of which is en suite. Stair access is conveniently located near garage door so as to not disturb occupants in the primary or junior suite on the opposite end of the home. Important rain or shine is a a covered patio, which this property has in addition to a level driveway which is all-weather friendly and most desirable, especially in the winter. Structural Builder's Warranty is transferable to new seller. This estate is both private with close access to the entry gates and has everything you could imagine and more! Did you know? Flagstaff Ranch is a top-rated golf course and is now Troon Managed! Flagstaff Ranch is ranked in the TOP 20 in Arizona by Golfweek!

3244 E Daley Lane Phoenix, AZ 85050

$2,250,000
4 Beds
3.5 Baths
4,163 SqFt
Status Active
MLS # 6704743
Property Type Single Family Residence
Price Type --
This exceptional home is nestled within the PRESTIGIOUS GATED enclave of Astarea in Sky Crossing. This Dignitary model boasts a custom steel security gate enclosing the courtyard, guest casita and boasts lavish upgrades throughout its open-concept design. Experience seamless indoor/outdoor entertaining with retractable doors. The gourmet kitchen features quartz countertops, a backsplash extending to the ceiling, a butler's pantry, and dual dishwashers. Step into a resort-style backyard featuring an expansive patio, a Pentair heated pool and spa with LED lighting, a swim-up bar, built-in barbecue, fire pit, and misting fan. Ample side storage accommodates recreational toys. Complementing the 3-car tandem garage. Sky Crossing amenities include multiple pools, sports courts, and play... areas. Ideally situated near the 101/51 freeways, Desert Ridge Marketplace, Mayo Hospital, and more! This property has a lease to purchase opportunity, as well as a fully furnished option.

26808 N 150th Street Scottsdale, AZ 85262

$2,250,000
3 Beds
3.5 Baths
2,746 SqFt
Status Active
MLS # 6740182
Property Type Single Family Residence
Price Type --
DISCOVER A SERENE DESERT OASIS surrounded by mountain views. Nestled in a horse-friendly community, this property is conveniently located near the entrance of the picturesque McDowell Mountain Regional Park. The park offers a myriad of outdoor activities, including 50 miles of trails dedicated to hiking, mountain biking and horseback riding. This exquisite custom home, constructed in 2020, boasts 3 bedrooms, 3.5 bathrooms, and a spacious 2,740 square feet of living space. A private well with a 5,000-gallon underground storage tank ensures a reliable water supply. The property features a 3-car extended length garage, including epoxy floors, insulation, and ample space for trucks and storage. The home's interior is elegantly designed with all tile floors and granite countertops, offering a clean low-maintenance living experience. The luxurious primary suite serves as a true sanctuary, complete with fireplace, jetted tub and large walk-in closet. For equestrian enthusiasts, the property includes a meticulously designed horse setup with a MD Barnmaster 4-stall barn, featuring a tack room, hay storage, raised center aisle with porch, windows, end doors, and stall doors. The barn is equipped with amenities such as electricity, automatic waterers, and stall mats for the comfort of your horses. The 5-acre property has low-maintenance desert landscaping and is securely enclosed with a 5 foot high, 4-pipe rail, no climb fencing, providing a safe and secure environment. Seize the opportunity to experience the tranquility and unique features of this exceptional property, priced below appraisal. Discover why this home is truly one-of-a-kind.

4489 N Ocotillo Road Benson, AZ 85602

$2,250,000
5 Beds
4 Baths
3,600 SqFt
Status Active
MLS # 6746660
Property Type Single Family Residence
Price Type --
With irrigated pastures, barns, multiple homes, and the San Pedro River this property is one of a kind. This ranch has 55 acres of irrigated pasture and a 900 gpm irrigation well. Along with two horse barns, shop, clinic, hay storage, working corrals, tack rooms, feed rooms, and more. The ranch is the perfect place to raise cattle or horses in privacy. The 2400 sf home, 1200 sf ranch mangers home, and barn with office/apartment it provides space for all your crew or guests. Just 22 miles from Benson this location is great for expanding your livestock operation. Three domestic wells, a large irrigation well, and a pond supply water to the acreage. This location has an amazing water table and would make a perfect place to grow any crop or raise feed. A 350 acre private lease also available.

14216 S Canyon Drive Phoenix, AZ 85048

$2,250,000
5 Beds
5 Baths
5,561 SqFt
Status Active
MLS # 6751901
Property Type Single Family Residence
Price Type --
Custom estate sitting on nearly 2.5 acres in the prestigious of gated Canyon Reserve community. Stunning mountain views surround the main and guest house on this quiet cul-de-sac. Greeted with high ceilings, arched entryways, travertine floors, and large windows to provide natural lighting in the formal dining, great room with gas fireplace, and office/den with built-in floor to ceiling bookshelves. Chef's kitchen includes stainless steel appliances, kitchen island with additional sink, pantry, and eat-in kitchen. Primary suite includes built-in shelves, fireplace, private seating area, dual sink vanities, oversized shower, separate bathtub, and walk-in custom closet. Entertain family and friends in the backyard's custom pool/spa with expanded pool deck, covered patio, outdoor TV setup, built in BBQ, and exterior fireplace while enjoying your private mountain views and desert landscaping. Additional home features include a 3-car garage and guest house with mini kitchen and full bath. Located near your favorite Ahwatukee hiking, golf, and dining!

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