Do you have a favorite vacation destination? Wouldn’t it be incredible to own your own vacation home there?
With your own home, you’ll likely visit your favorite place much more frequently since you don’t have to secure a reservation. If you can work remotely, a vacation home opens up the opportunity to split your time between locations without disruption.
Most people assume owning a vacation home is beyond their reach. Fears about qualifying for another mortgage, particularly in a popular destination, keep many people from beginning the conversation.
But buying vacation homes isn’t just for the wealthy or retired. Many are making their dreams come true by securing the right vacation home loan.
Wondering how you can finally purchase property in your dream destination? Let us take you on a journey toward doing just that.
Determine How Much You Can Borrow
If you want to buy a vacation home, start by determining how much you can borrow. You can use an online home loan calculator to estimate monthly payments on your vacation home.
If your purchase plans need to be pushed to the future, aim to pay down your debt, which lowers your debt-to-income (DTI) ratio and increases your borrowing power.
Qualify for a Vacation Home Loan
Vacation home loans have more strict lending requirements than primary residence loans. Typically, you’ll need a down payment of at least 10 percent, but putting down more can help you qualify for a better interest rate.
Many homeowners use a cash out refinance or a HELOC to cover the down payment on a second home. If you’re looking for ways to finance a purchase, consider partnering with a close friend or relative to share the costs of property ownership.
Keep in mind, second home loans must finance a single-unit property that owners occupy for a portion of the year, not an investment property.
If you plan to rent out the property when you aren’t using it, inquire about an investment loan, which has different requirements, but allows you to earn passive income from the property. This kind of investment may make second-home ownership more affordable for newcomers to multi-property ownership.
Contact multiple lenders when seeking a mortgage quote, each may offer different interest rates and will have particular requirements.
Seek at least three quotes from lenders local to the area you’re planning to purchase property.
Contact an Experienced Realtor
Once you know your lending ability, partner with a local, experienced real estate agent. They are knowledgeable about locations that will meet your criteria for vacation homes.
Are you hoping to find a home near Destin, Florida? It’s one of the most beautiful places in the country, with warm weather year-round making it a popular vacation and snow-bird destination.
Rodos Advisors powered by eXp, can help you find your dream vacation house in or near Destin. We have years of experience helping families find and purchase vacation homes, investment properties and primary residences along the Emerald Coast.
Owning a Vacation Home Isn’t Impossible
Owning a vacation home isn’t a pipe dream. It’s accessible to many people who may not even realize it.
Start with the steps above and you could soon be living like a local in your own vacation property along the Emerald Coast.
If you are ready to find a new home, Rodos Advisors powered by eXp welcomes the opportunity to help. Contact us today to turn your dreams into a reality.