Vacation Home Financing – What You Should Know
Whether you see yourself at the beach, in the mountains, or on the golf course, Inlanta Mortgage is here to help provide you with the financing you need to make your dream a reality!
When it comes to financing second homes, it’s important to note that lenders are most concerned that the transaction makes sense. In other words, the lender wants to ensure that the buyers are not using the second home as an investment property rather than a true second home.
This is because investment properties have much more rigid financing guidelines, so don’t be surprised if you find your lender asking what you are really trying to accomplish with this home purchase.
Fannie Mae does have some additional requirements regarding the ownership of a second home. The first is that the property must be a single-family dwelling that is occupied by the buyer at least part of the year. Additionally, the property must be habitable year-round, and there can be no time-share or other similar agreement on the property.
Beyond these factors, the financing of a second home is similar to that of a primary residence. Keep in mind that the financing on these properties will be mainly through a Fannie Mae or Freddie Mac type of program, as FHA will rarely finance second homes.
Minimum down payment amounts are typically 10%.
Contact Dan Leeder for details.
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