A cottage at the beach, a cabin in the mountains, or a home by the lake. A place to gather with friends and future generations, and to just simply unwind. Who hasn’t dreamed of escaping to that home-away-from-home on weekends and for family vacations. eLEND can help make that dream a reality with affordable vacation home financing.
Coming up with a budget for buying a vacation home involves looking at several different elements. Consider the upfront costs such as the down payment, financing expenses, furnishing and outfitting the home, and any repairs that might be necessary. Ongoing costs will include the monthly principal and interest payment, as well as insurance and real estate taxes. In addition, there will be the expense of utilities, property owners association dues (if applicable), maintenance and repairs, as well as travel to and from the home. Use our Mortgage Calculator to crunch the numbers on how the second home mortgage you're considering would impact your current budget.
Because many vacation homebuyers already have a mortgage on a primary residence, it may be somewhat more difficult to qualify for the second home loan. Applicants must be able to document enough income to show that they can afford both properties and have enough in savings or other accessible assets to cover several months’ worth of expenses on both homes.
Otherwise, the mortgage process is very similar to financing a year-round home. Loan approved will be based on an evaluation of the borrowers’ income, assets, credit score and history, other debts, equity position, and other factors.
Many of the mortgage programs used to finance the purchase or refinance of a primary residence can also be used as a second home mortgage. With eLEND, you can choose from 30, 20, 15, and 10 year fixed rate mortgages or 5/1, 7/1, and 10/1 adjustable rate loans.
Which is the right home for you? Many factors will likely come into play when making this decision. Consider your budget, preferred location, the style of home you like, the amount of space you need, and your favorite features in a home.
There may be several property types available depending on your location.