Are there risks associated with owning a second home?
What are my options for financing a second home purchase? I am interested in buying a vacation home in a popular tourist destination, but I'm not sure how to finance the purchase. Should I use a conventional mortgage, a home equity loan, or a line of credit? Additionally, what factors should I consider when choosing a lender or loan type? For instance, should I prioritize lenders who specialize in vacation home financing or who offer low interest rates? Are there any tax implications or financial risks associated with owning a second home that I should be aware of? by jim957 from Aspen, Colorado. May 8th 2023
Dave Skow (daveskow)
#15 ranked lender in Washington - 455 contributions
1) pricing for a vacation home is similar to pricing for a rental prop loan ...the present rates / fees will likely surprise you if you thoogh that the pricing would be similar to owner occupied pricing 2) contact several lenders - ask your questions - get some quotes - choose a lender to get pre approved with 3) ask a CPA the tax implication questions
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
My best advice is to simple reach out to a fully licensed, and well qualified Loan Officer. They will review your situation, then be able to assist in answering all your questions based on your specific situation. The bulk of lenders all offer second home financing. Chasing the guy quoting the 'lowest rate' generally means looking for the biggest liar. Our company lends in CO, TX, FL, MN, WI, IA, ND, SD. | Cambria Mortgage, NMLS 274132 | https://www.cambriamortgage.com/mortgage-member/joemetzler/
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