Second Home - Vacation Home Purchase

How to Purchase a 2nd Home (or Vacation Home) with FHA Assistance

Many people are investing in second homes for a weekend get-away, or looking for a summer retreat. Regardless if its a timeshare, a cottage in the country, a ski house, a waterfront home, etc., a growing amount of Americans are utilizing vacation home loans, which were previously only affordable and available to the affluent.

Vacation Home Mortgages

It used to be difficult to achieve vacation home financing. Lenders would assume that their was greater potential for borrowers to go into default on their loans since this financing was typically for their second major mortgage. Today, even though getting approved for a vacation home loan is still not as a easy as getting a loan for a primary residence, it is not so much as a challenge as it was in the past. The increased property values across the United States and the fact that mortgage rates are near 40-year lows, is helping the approval rates.

Buyers will typically be required to make at least a 10 - 20% down payment for their home purchases. However, it is important to note that Star Loan Services only requires 5% down payments for qualified buyers. Buyers who rent out the property might face a higher down payment since that will further raise the risk for the lender