(305) 798-3124
(786) 201-1707
(305) 361-1661


Financing a Vacation Home vs. an Investment Property

Written By: David Reed
Sunday, August 09, 2020

There are distinctions and rates and terms can be different as it >

The primary requirement is the property needs to be occupied by the owners for 30 or more days out of the year. The home should also be a single family home and cannot be a duplex or 2-4 unit property and the property must be suitable in which to live year-round. Think for example a cabin in the mountains where it gets heavy snowfall in the winter making it difficult to access the cabin. How would a lender know if a prospective property will qualify as a vacation home instead of a rental? Simply put, the prospective buyers let the lender know of their intentions. They do so by checking a box on the loan application. On the application, there are three options in which to check: Primary Residence, Secondary Residence and Investment. Its the secondary residence that qualifies as a vacation home.nbsp;

On the other hand, an investment property will typically command a down payment of 20 or more. Interest rates for an investment property compared to a vacation home can be anywhere from 0.25 to 0.50 higher. That means higher rates and more cash needed at the settlement table. As it >

There are some tax implications as it >



Copyright© 2020 Realty Times®. All Rights Reserved

Client Login
Recieve Email Alerts
Updated: Wednesday, August 12, 2020

What Should You Know About Vir...
The pandemic is still going on, despite most states being in some phase of their reopening p...

Tips To Make Your HOA Newslett...
Focus on Building Community. Get HOA members to become participants rather ...

Tips for Landlords During COVI...
The CARES Act also established a federal eviction moratorium, but now thats come to an end, ...

Copyright ©2020Realty Times®. All Rights Reserved