Second Home Mortgage - Recently second home sales have accounted for more than one third of all residential real estate sales. Second homes are typically classified as vacation properties.
In order to qualify as a second home the subject property usually has to be at least 100 miles from the borrowers primary residence and be located in a coastal, mountain, desert or other "resort" type area.
Underwriters want to be comfortable that the property will indeed be used as a second home and not as investment or rental property.
The hottest segment of the real estate market has been in coastal towns, mountain towns and other vacation spots.
While 100% financing does exist for second homes, to get the lowest second home mortgage rates you'll need to put at least 10% down.
When shopping for a second home, you'll want to take extra care to get to know the area. If it's not close to home, this will take more effort on your part. Plan to visit the spot at least three times and work with a real estate agent who knows the market.
