Buying a Second Home

Thinking about buying a Second or Vacation home?

There are a few things to look into before committing to that stunning beach home you’ve always wanted to visit during the winter.

Can I afford a second home?

Before you make this major financial decision, you’ll need to find out if you can afford a second home. First, add up all the costs. Not just the costs that go into the purchase, but the costs that might not be immediately obvious. These include your down payments and monthly mortgage payments, as well as closing costs, utilities, property taxes, insurance, landscaping, travel costs, and other upkeep.

The differences between mortgages on primary residences and second homes

On your primary mortgage, you might be able to put as little as 5% down, depending on your credit score and other factors. On a second home, however, you will likely need to put down at least 10%. Because a second mortgage generally adds more financial pressure for a homebuyer, lenders typically look for a slightly higher credit score on a second mortgage. Your interest rate on a second mortgage may also be higher than on your primary mortgage.

Otherwise, the process of applying for a second home mortgage is similar to that of a primary residence mortgage.

Qualifying for a second home mortgage

Before you apply for a second home mortgage, review your credit score, assets, and income, just like a lender will.

To buy a second home, you’ll likely need extra money in reserve that could cover your mortgage payments in case you have a temporary loss of income. Well-qualified individuals likely need at least two months of reserves, while less-qualified applicants may need at least six months of reserves. One month of reserve funds should be enough to cover the monthly mortgage payment on both homes.

Debt-to-income (DTI) requirements for a second home mortgage may depend on your credit score and the size of your down payment. Generally speaking, the more you put down and the higher your credit score, the more likely your lender will allow a higher DTI.

Some homeowners might choose to offset their expenses by renting out their vacation homes when they’re not using them. Doing this could violate your mortgage terms because you are using the property as an investment instead of a true second home, resulting in a higher risk to the lender

To qualify as a vacation or second home, typically, the property must:


Be lived in by the owner for some part of the year


Be a one-unit home that can be used year-round


Belong only to the buyer


Not be rented, or run by a management firm


NOT be in the same town you live and work in

Do you have any questions? We are here to help!

We understand you may have questions, as a responsible potential SECOND home buyer should!

Please feel free to also give us a call and schedule a time to sit with one of our Loan Officers and request a consolation for applying.
We are here to help, and Congratulations on taking the first step!


Branch Manager

Derek Egeberg

NMLS 180899 State Lic: AZ LO-0915245, TN 236104
PHONE: (928) 246-0422
PHONE: (928) 247-9089
Sales Manager

Bill Craft

NMLS 1621885
State Lic: AZ LO-0942496, CA-DBO01621885, MLO-54015VA
PHONE: (928) 366-1639
PHONE: (928) 247-9089
Senior Loan Officer

Ray Ochoa

NMLS 214114
State Lic: AZ LO-0915882, TN 238287
PHONE: (928) 246-5937
PHONE: (928) 247-9089
Apply Now

Senior Loan Officer

Rosa Castillo

NMLS 799138
State Lic: LO-0944489
PHONE: (928) 920-2831
PHONE: (928) 247-9089
Apply Now