Over the past few decades more and more professionals have purchased second homes and vacation properties in the United States. With that growth, a greater percentage of lenders and brokers have begun financing vacation homes. Today, the vast majority of companies offer products for vacation properties. The mortgage rates presented in the rate tables on PriceAMortgage.com are for owner occupied primary residences and therefore you will have to speak with the various companies to obtain their current pricing for second home financing.
Guidelines for second home mortgages are often a bit more restrictive than with loans for primary residences. Why? Because if borrowers find themselves in a position where they have to walk away from their properties or not make a mortgage payment, they are likely to neglect their obligations on their second homes. Thus, many banking institutions view vacation home as more risky. Lending guidelines can and do vary by lender so be sure to shop around to find the right fit for your individual needs.
Mortgage products for second homes are typically similar in functionality to what you’d find with financing a primary residence. Most lenders offer a variety of fixed rate (often 10,15, 20 and 30 year) and adjustable rate programs (3,5,7,and 10 year introductory rates) and non-conforming loans can be used for loan amounts that exceed areas’ conforming loan limits. Contact a mortgage company in your area to find our what they have to offer and to check mortgage rates and closing costs for vacation homes.
If you’re planning on only renting out the property and not living in the home, you’ll likely need to look into an investment property loan.
Some Companies offering Financing for Second Homes
- American Financial Resources offers financing solutions for the purchase and refinance of second homes throughout the United States. They also offer competitive investment property mortgage rates if you are planning on renting out the vacation home the majority of the time – 800.316-9508. NMLS#2826
- Gateway Bank Mortgage is a North Carolina mortgage bank that provides mortgages for second homes along the eastern seaboard from Maryland down the coast to Florida – 877-728-3569. NMLS#463089
- The Decker Group offers vacation home financing in both Texas and Oklahoma. Excellent second home mortgage rates for great credit. NMLS#119417 (Kelly Decker)