August is the traditional vacation month for many Americans.
In Michigan, vacationers go “up north” for relaxation and fun. Some own waterfront cottages or cabins in the woods. Others may spend time at a lakeside rental.
For those who do not own a place, the experience of getting away for a week or two inspires dreams of buying a vacation home.
If you fall into this category, this article is for you. We’ve assembled tips for buying and financing the vacation home of your dreams.
These guidelines apply whether you want a place on the Great Lakes in Michigan, near Put-in-Bay in Ohio, on Florida’s Gulf Coast, in California’s Napa Valley, or on the outer banks of Texas.
“We love helping people make their vacation home dreams affordable,” says Mortgage 1 CEO Mark Workens. “We have helped hundreds of vacation home buyers.”
Let us help you finance your vacation home. Are you considering a vacation home? Make your dream a reality. Locate a Mortgage 1 loan officer near you.
We’ve already alluded to one of the benefits of owning a vacation home: having a place to call your own.
There are other benefits, too.
As with most things in life, owning a vacation home does have its flip side. None of these are insurmountable, but you should be aware that when you own a vacation home:
“In Key West and other places in Florida, you have to get a special license to rent your property for less than a month,” says loan officer Kinsy Prescott of the Mortgage 1 Cape Coral branch.
Financing a vacation home is different than financing your primary home. How so?
One thing in your favor when it comes to financing a vacation property home is, if you plan to use the property as a true second home, it’s less expensive than if you plan to use it as an investment property.
“A second home mortgage tends to be significantly easier to qualify for than an investment property loan,” says branch manager Mark Copland of Mortgage 1’s Livonia office. “And it’s also typically less expensive — in terms of interest rates and fees — than an investment property loan.”
From his locations in Livonia and Ann Arbor, Copeland has helped buyers obtain vacation homes all across the state.
Here are tips for getting your dream vacation home:
“Stricter requirements and higher costs for vacation homes means there are fewer qualified buyers,” says Mortgage 1 Port Huron branch manager Chuck Wansedel. “If you are preapproved, that makes your offer carry more weight.”
From their office in Port Huron, Wansedel and his team have helped dozens of families purchase vacation homes along the shores of Lake Huron in Michigan’s thumb region.
Are you considering a vacation home? Do you have questions? Give us a call at 866-532-0550 or locate a Mortgage 1 loan officer near you.