California Vacation Home Loans

Everything You Need to Know About Getting a California Vacation Home Mortgage

Are you interested in buying a second home and are considering a vacation home mortgage in California? LBC Mortgage can help! Before you decide to work with a lender. It’s important to consider the differences between your primary home mortgage and a vacation home or second home mortgage. Understandably, lenders are cautious to finance second homes, so don’t be surprised if you need a down payment in order to position yourself ahead of your competitors. It doesn’t have to be a large chunk of money but around 10%-20% should be enough to make lenders take your vacation home mortgage application seriously.

With a vacation home mortgage in California, your debt to income requirements are often narrower. Being cautious, lenders often ask for two months payments’ worth in cash reserves, but the amount will depend on your credit score and financial profile.

How Does a Vacation Home Mortgage Compare to Other Types of Mortgages

If you’re interested in getting a second home mortgage and you’re not sure how to afford it, one of the methods is to use the equity that is built up in your primary home. For example, a home equity line of credit can help with the down payments, but you’ll still need the credit profile to qualify for the second mortgage in the first place.

Finding the Best Rates for Your Vacation Home Mortgage

California is a great place to vacation, and buying a vacation home is a smart investment. The state itself is filled with gorgeous landscapes, an incredible history, a wide variety of recreational opportunities and much more. It’s important to note that the IRS views vacation home mortgages differently than your primary residence. According to the IRS, in order to consider your property a vacation home or a second home in California, the property must be used by the owner at least 14 or more days per year or more than 10% of the time that the home is rented.

The most common type of vacation home mortgage is a conventional loan, since government backed loans (like Fannie Mae and Freddie Mac) are usually only used for primary residences. The important point to remember is that your lender will want to be sure that you have a good credit score as well as enough income to cover the payments on both homes. Underwriting requirements for your primary home are much more lenient than they will be for your second or vacation home, but it’s still worth working with a knowledgeable experienced lender when it comes to buying a vacation home in California

Working with LBC Mortgage for Your California Vacation Home Mortgage

At LBC Mortgage, we work with individuals who are interested in buying a vacation home in California. Our decades of combined experience, together with our knowledge about the market in California and financing a second home make us one of the most popular choices for individuals and families who are looking to invest in a California vacation home mortgage for themselves, to rent and much more.

We invite you to contact us to learn more about how we can help you secure financing for your California vacation home mortgage. We work with an extensive network of lenders throughout the state who are ready to lend money to help you make your dream of a vacation home a reality.