Cottage, cabin, beach house, family home, ranch, casita, or chalet — all are great names for your home away from home! A Vacation Home Loan is exactly what it sounds like — a mortgage for a second home rather than a primary residence.
Second homes are a dream come true for many, but often require an extra investment of time and money. The investment may be greater, but the results are incredibly rewarding.
Just like any home mortgage, a vacation home loan has a range of requirements that all buyers must meet to qualify. Those qualifications include the following:
To get a vacation home loan in Michigan you’ll need to submit a mortgage application with one of our Loan Officers! Here are some of the documents you’ll need to start:
Owning a second home in Michigan needs careful consideration. Here’s what to consider before buying a vacation home:
Make sure the monthly payment of your vacation home mortgage leaves you with a debt-to-income ratio below 45% and is well within your personal budget!
Each location has its own set of circumstances and things to consider. Those may include insurance, HOA fees, average home value, etc.
Fill out an application and start the process! A Loan Officer will be your best source of information and guidance while buying a vacation home.
Aside from having the coolest mortgage staff on the planet…working with Treadstone on your mortgage in West Michigan gives you a distinct advantage in not only getting your offer accepted, but also in becoming a more successful and enlightened home owner.
Manufactured Home mortgage rates fluctuate daily based on several financial indicators and trends, just like gas prices.
Get pre-approved with a local Lender, like Treadstone! We’ll give you all the tools and resources you’ll need to begin the process. Need a realtor? We’ve got connections!
While a vacation home loan requires a 10% minimum down payment, you must put down at least 15% when buying an investment home. In some instances, the down payment requirement can increase for both property types depending on your credit score or debt-to-income (DTI) ratio.
When you buy a vacation home, it’s an investment! By paying down your loan’s balance, you’ll build equity over the long-run, making it a great tool for building wealth. You may even be thinking about renting out your vacation home to re-coup some of the cost (or make a profit!). By turning it into a short-term rental, you could consider your Lake Michigan bungalow an investment! We have even helped clients purchase oceanfront rental properties in Florida and other states where we are now licensed.
Maybe this goes without saying, but Vacation homes are also simply fun! Whether you’re grilling with friends, or fishing in solitude — your vacation home is your getaway.
