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VACATION AND SECOND HOMES

Image by Stephen Wheeler

SKI CHALET OR LAKE-SIDE COTTAGE?

Whether you're dreaming of a beachfront condo, a cozy cottage in the woods, or a ski-in/ski-out chalet, obtaining a mortgage for a vacation or second home requires careful consideration and planning.  Great news is that we got you!

Some Useful Information

When looking to obtain a mortgage for a vacation property or second home, there are several unique considerations that borrowers should keep in mind:

 

 

  1. Income verification: Lenders may require additional documentation to verify a borrower's income for a vacation property or second home mortgage. This is because borrowers may not have the same level of stable income as they do with a primary residence, especially if the property will be used as a vacation rental.

  2. Down payment requirements: Lenders may require a larger down payment for a vacation property or second home mortgage compared to a primary residence. This is because vacation properties and second homes are considered to be a higher risk for lenders.

  3. Property usage restrictions: Depending on the location and type of property, there may be usage restrictions that impact a borrower's ability to obtain a mortgage. For example, some lenders may not finance properties that are rented out for short-term vacation rentals.

  4. Property condition: Lenders may require an inspection of the property to ensure that it is in good condition and suitable for use as a vacation property or second home. This is because the property may be vacant for extended periods of time and may be subject to more wear and tear than a primary residence.

  5. Location: The location of the property can also impact a borrower's ability to obtain a mortgage. For example, some lenders may not finance properties located in remote or rural areas.

  6. Insurance requirements: Lenders may require additional insurance coverage for vacation properties or second homes, such as flood or hurricane insurance. This can add to the overall cost of owning the property.

 

 

At Swivel, we understand the unique considerations involved in obtaining a mortgage for a vacation property or second home. Our experienced mortgage professionals can help guide borrowers through the process and find the right mortgage to fit their unique financial situation and goals.

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