Are you looking to buy a vacation home but don't have the funds to make a large down payment? You may be able to purchase a second home with just 10% down. Northview Bank offers borrowers financing options for cottages, vacant lots, and homes in Lagos that make buying possible with just a 10% down payment. However, if you're looking to buy a multi-unit vacation home, lenders will almost always treat your purchase as an investment property. When looking for places for a vacation home, set a realistic maximum of how much you are willing to offer in a home.
Unlike investment properties, you can't use future rental income to help you qualify for a vacation home. If you're having trouble qualifying for a vacation home loan when you first apply, try looking for a lender with more lenient requirements. If you can qualify for your purchase without the property generating any income, buy it as a vacation home. If you own your vacation home longer than the initial loan period, you will be subject to market rate fluctuation, which can cause mortgage rates on your vacation properties to rise or fall each year.
Since owning a vacation home means you won't be there all the time, you may need to hire someone to look after it during your absences or when you're between guests, if you rent it. When it comes to insuring your vacation home, if you plan to use it exclusively for yourself, insuring it can be as simple as extending the policy you already have at your primary residence. Some homeowners defray their monthly mortgage payments by renting their vacation home when they don't use it. To sum up, if you're looking to buy a second home as a vacation property and don't have the funds for a large down payment, Northview Bank offers borrowers financing options that make buying possible with just 10% down.
However, if you're buying a multi-unit vacation home, lenders will almost always treat your purchase as an investment property.