2nd Home Purchases

Buying a second home is a great investment into your future. It can help you earn income that you may have not had before. A second home can be a place that you can get away from stressors in your everyday life.

Picking a location to purchase a second home:

When deciding to purchase a second home, there are certain factors to consider. Do you want to be close to family? Maybe you prefer to live near scenic areas such as a beach or mountains. Is there a specific city that is in an ideal area that has the best of both worlds.

Its important to discuss your ideal living situation with your spouse and other family members that might be involved in this decision making process. A local real estate agent can assist you in finding the best areas for another home. Planning ahead can make the home buying process, pre-approval, alot easier. Research the area ahead of time and maybe even visit before making decisions. This way, you can get a lay of the geography and things that you like a dislike will appear to you naturally. Having the numbers ahead of time can show initiative to the lender and make the pre-approval process move along more efficiently.

What are some uses for a second home?

Vacation Home: If you are someone who takes vacations multiple times throughout the year, you may be someone who benefits from a vacation home. A home away from home should be in a place that you enjoy exploring. The process to acquiring one of these homes is much like the process of acquiring your first house. There are a few slightly stricter requirements. Jumbo loans and conventional loans are typically the best options for vacation homes.

Secondary Residence: If you travel for work often and spend time in another city, you could consider using your home as a secondary residence.

Investment Property: Investment properties are a popular topic in the real estate world. This is a property that you typically either flip or resell for a profit. In order to be eligable for an investment property there are certain requirements and mortgage rates for second homes. An example of this would be how you cannot use a jumbo laon to aquire an investment property. This would be considered an investment in the lender world if it is rented more than 14 days of the year. A conventional loan is different in that if this is used for a second home, it can be rented out for up to 6 months. You cannot use federally backed loans such as VA loans or FHA loans for investment homes. These loan types an only be used for personal home purchases. Make sure you discuss in detail.

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