Buying A Second Home In Scottsdale: Mortgage Secrets for Vacation/Rental Homes

Maybe you've been thinking about buying a second home or vacation home in Scottsdale, Arizona. This community offers remarkable potential for second homes. It's a beautiful city with access to golf, shopping, restaurants, and entertainment.There are some remarkable condominium, town home and patio communities in Scottsdale. These properties are great for rentals, they are in a high demand with local residents and tourists alike. If you are contemplating a purchase of a second home for investment or vacation use, you are sure to find a property that has great potential for return on investment in Scottsdale.In the last year, almost 40 percent of homes sold in the United States were purchased as second or vacation homes. As popular as it is to buy a second home, it's not always easy to arrange financing.Finding a loan for a second home can be difficult because it stretches the finances of the owner past a level that's comfortable for many lending institutions. There are loans available for second homes, but all too often these loans require the buyer to pay higher interest rates or origination points. Fortunately, there are some options for second home loans.Increased Down PaymentTypically, second home buyers are more affluent than first time buyers. As a result, they may have more readily disposable money in savings to use as a down payment. With a higher down payment, lenders are likely to find other mortgage packages that reduce the overall interest on the loan.Home Equity LoanHome equity loans: loans taken on your primary property are one way to pursue a purchase of a second home. You may pay slightly higher than average interest, perhaps a point or more. Home equity loans aren't always the best bet because you are using your primary residence as collateral. Be careful not to get overextended with the loan and endanger your first property.Traditional MortgagesIf you don't have the option of a larger down payment and aren't interested in a home equity loan, there are still some options available to you. It may take a little creativity on the part of the loan officer, but there are some excellent mortgage programs available to buyers of second homes. Before you start the process of shopping for a second home, find a creative mortgage agent that can help you put together the best loan package. Most agents can prequalify you for a second loan, so you know of any potential problems before you encounter them.You'll find some amazing homes available in Scottsdale, properties that allow you to spend some time relaxing in the sun, and homes that virtually pay for themselves in rental income. With a little research and creativity, you could own your home in no time.
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