Second Home Mortgage | Vacation Home Mortgage
Buying a second home or vacation home is a dream for many Americans. It’s also a big decision. Before you make any major money decisions make sure you break down the pros and cons of such an investment.
A second home can act as both a vacation home and an investment, as homeowners can easily rent them out when they’re not staying there. But like most home purchases, buying a second home probably means you’ll need a second mortgage. When you are going through the second home search and purchase process, there are a number of factors you’ll need to account for. These include overall affordability, purposes for the home, tax considerations and payment terms. Meet with a financial advisor in your area if you have questions about how buying a second home could affect your short- and long-term financial plans.
Second home mortgage are follow the the standard conventional loan limit of $647,200 in 2022 for a single family residence.
What Are the Advantages of Conforming Second Mortgages?
- Minimum down payment of 10%
- No prepayment penalty ever
- 30yr, 25yr, 20yr, 15yr, or 10yr
- Up to 43% debt to income ratio
- With or without mortgage insurance
What Are the Requirements?
- Minimum credit score 620
- Debt to income ratio under 43%
- Minimum down payment of 10%
- Down payment must be verified
- You must live in the house for some part of the year
- The home must typically be located at least 50 miles away from your primary residence
- The home cannot be subject to a rental, timeshare, or property management agreement
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Fidelity Home Group
4700 Millenia Blvd Suite 175, Orlando, FL 32839
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