Vacation Home Loans

There are many loan programs available for financing a vacation home. The loan program that you select is an important decision.

Vacation homes or second homes may be tax deductible. Consult you tax professional for details.

Many people will buy a vacation home, or 2nd home with plans of moving into upon retirement. If you fall in to this group you may want to consider looking at refinancing for a lower interest rate. Rates on vacation homes typically carry slightly higher interest rates than your primary residence. Once you have permanently moved into the house and you have homesteaded it with the county, you can refinance it as your primary residence.

Vacation homes typically need to be a reasonable distance from your primary residence. One of the exceptions may be that the vacation/second home is on the water while the primary home is not.

What will you do with your vacation property while you are not using it? Many people find they can supplement their mortgage payments by renting out a vacation home. Sometimes this supplemental income can even be used for loan qualification. If you want to use your vacation home as a rental property, be sure to mention this to your loan professional or preferred property management company.

You can get many of the same loan programs for vacation homes that you can get for your primary residence. This includes fixed rate loans, arm loans, option arms, interest only loans, etc. In addition, there are loan programs available that allow you to qualify without documenting your income.

Programs are available up to 100% financing for second or vacation homes as well.