Look out mountains, look out sun, look out beaches – here you come!
When you’re ready to finance the purchase of a second home, we have options. But first things first: what exactly is a secondary home? It’s a residence that you intend to occupy at least 15 days yearly as a second home (vacation, etc.) while maintaining a primary residence elsewhere (not in the same locality).
Can you rent it out seasonally (i.e. week-to-week)? Yes, although for purchases you would have to qualify for the mortgage based on existing income. Anticipated seasonal income won’t be considered.
For a purchase, how much should you expect to put down? The minimum down payment is 20% of the purchase price or appraised market value (whichever figure is lower, if they differ).
Here are some more basics:
- For purchases and refinances, financing available up to 80% of sales price/appraised value.
- Financing available for single family residences, town homes and 1-unit condominiums
- Terms available up to 30 years
- For refinances, closing costs can be rolled into mortgage to minimize out-of-pocket expenses
- Average application processing time is 30-45 days
- Mortgage origination fee $895 (regardless of loan amount). Other closing costs such as title insurance, appraisal and transfer tax are separate.
- Financing available in all states except Texas and Puerto Rico
- No pre-payment penalties
- Simple online application process