How do i go about a vacation home in another state, will the mortgage process become complicated legally and are there any issues i need to know about?

You shouldn't have an issue so long as you use a mortgage broker local to the area your looking to purchase in.. the local broker has access to numerous lenders seeking out the best terms for your particular scenario.. he would also be familiar with local intricacies and customs that most out of state / internet lenders would not. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Vacation homes need to be at least 50 miles away, and cannot generate income for the purpose of debt ratio calculation. You will need 20% or larger down payment, from seasoned funds.

That should not be a problem, as long as you meet all qualificaiton requirements. Depending on the price of the home the downpayment required generally starts at 10% for conforming loans with a fixed rate. Higher downpayment is required for ARM's and jumbo loans, usually 20%+. You could also refinance your current home and take cash out to purchase the other home, the maximum you can borrower against your current home is normally 85% of the current value. The only advantages are that you would only have one mortgage payment, and possibly that would allow you to pay cash for the vacation home. Please let me know if I can help.

Purchasing a home in another state should not be overly complicated. However, make certain you find a good real estate agent and lender that can help you navigate the differences in closing on a home in their state. Arizona and California have different processes than Florida. They can help "translate" the terminology and process.

As long as you qualify for the 2nd home... and have at least 10% down, buying a second home / vacation home is no big deal...

Vacation homes are done all the time. Based on the fact you live a reasonable distance from where you are looking to purchase the second home. The rate and fees will be slightly higher but the approval process should be no different