Mortgage Guideline Tip - Dreaming of a Vacation Home?

Have you always dreamed of owning a vacation home?  It's not a decision to be taken lightly, but if it is something you've always wanted, the means for making that dream come true are not as difficult as you might think.


Here's some things you should know:

Conventional Financing - Purchasing and financing a second home is a little different than purchasing a primary home.  Some of the low down payment programs are not available but with conforming loans, as little as 10% down can get you started.

"Cash Out" Financing - Are you thinking about a cabin in the woods, a summer cottage, ski or golf course condo? Unique properties may have appeal, yet they may also need non-conventional financing.  If you can, using equity from a primary home via refinancing can be a smart solution that also provides you with a "cash buyer" status.

Rental Income - You should never purchase a vacation home if you're dependent on rentals to make it work.  However, if you will hire a manager and don't mind sharing, the income can be a great subsidy.

Tax Benefits and Appreciation - You should always check with your tax pro, but owning a second home can still carry tax advantages that serve to reduce the actual cost of owning.  Appreciation is never guaranteed, yet over time value increases can reward you handsomely for decisions made today.

If you think you are ready to find out more information on second-home ownership, call us.  We'll be happy to help identify the best way we can help you reach your goals today.