Have you caught yourself looking over vacation properties and wondering whether you could get a second loan? Midland Mortgage Corporation can help you secure up to four mortgages for separate residences. The second home market is booming as interest rates stay low and available homes are keeping prices reasonable. Cash in today with the perfect loan for your vacation property.
More than a traditional loan used for securing your primary residence, the terms of mortgages meant for vacation properties rely heavily on the property and your financial information. We can provide you with general information, but if you’d like a more accurate look at the terms, interest rates and down payments expected, please contact us for a personal consultation.Second home mortgages are more stringent in the following ways:
Chances are, if you’re looking for vacation home financing, you could afford to liquidate a few assets to pay in cash. Lenders know this and try to keep their loans as attractive as possible. For instance, you’re able to take a line of credit on your primary residence to place a down payment on your second home. As long as your housing expenses continue to fall within 38% of your income, you shouldn’t have any problems with financing a mortgage for a vacation property. The one caveat, of course, is that your credit score must be solid enough for you to qualify.
While other loans are dropping their standards, vacation home purchases still present a higher risk. To counter balance this risk, they expect buyers to have better credit. Scores for these loans tend to bottom out at scores of 740, though Midland Mortgage Corporation may be able to work with borrowers with lower scores. We can also pass on a few tips and tricks for cleaning up your credit report so you can qualify for our vacation home lending programs.
Vacation home doubling as a weekend rental? If you’re looking to add to your real estate portfolio, ask one of our consultants about our loans for investment properties.