Financing a Vacation Property With a 2nd Home Loan

The smell of summer is in the air, and all I can think about is how to finance my second home that I have been talking about since George Bush Sr. was in the White House. Every summer, I find myself leaving the hustle and bustle of Los Angeles in search of my dream home on the sand. Once again I find myself driving down the coast to beautiful San Diego. The waves are good, the people are friendly, and the weather is flawless.

Being a mortgage consultant, you would think I would just pull the trigger and finance this dream home. One dream home is selling for 4 million dollars. It might be chump-change for my Hollywood friends, but 4 million for a vacation home is a lot to pay. Then the little voice inside my head spoke again. He said, "Art-boy..How many times do you live?" I guess the answer is simple. We only live once. This is a good mentality if you can separate your emotional attachment with buying investment properties. If you can afford the mortgage payment, and you are buying a vacation home simply to enhance your life, then it's important to have your financing approved prior to making an offer on a home.

There has been a considerable increase in people buying second homes, and not just in California. People in Florida, Michigan, Georgia, Washington and Virginia are buying second properties at a rapid pace. If you are considering the purchase of a vacation home or investment property, talk to your loan officer and get pre-approved for a specific amount. This way you will know your price range for buying a home.

For financing purposes it is important to determine whether or not this will be an owner occupied second home or a non-owner occupied rental property. The specific difference between the two types of properties is whether or not the property will be rented out. If a property is rented for any period of time during the year, then underwriting will consider this to be an investment property. The mortgage interest rates for vacation homes are more favorable than those for rental-income properties. Don't forget that the interest paid on a vacation home is tax deductible, just like the interest paid on a primary residence.

Art is one of the most respected mortgage writers online for home loan related topics. When Art isn't helicopter surfing in Baja, you can find him in various coffee shops along the coast writing finance articles for corporate banking instituions that like his work.

To learn more about interest rates, purchase mortgages, and home equity loan products and current interest rates, please visit, Bad Credit Second Mortgages. Art suggests visiting the mortgage loan resource center at the and learn more about getting approved for a second home loans. If you need additional help or advice from trusted loan professionals, visit the good people at Bridge Mortgages and ask them about their Zero Down home loan specials for 100% Home Financing.


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