Purchasing a second home or vacation home can be a lot easier than one might expect! EveryHome had the opportunity to speak with Rob LaPierre, the Branch Manager of Fairway Independent Mortgage Corporation.
With the tightening of lending guidelines over the past few years and since the beginning of the recession, many buyers are under the impression that it is very difficult to obtain financing for a second home but in reality it is not that much different than buying an owner-occupied primary residence.
Here are some of the qualifying guidelines that we must follow:
· Property must be occupied by the borrower for part of the year.
· Must be within a reasonable distance from their primary residence. Typically 2 hours away travel time by automobile.
· Is restricted to one unit dwellings
· Must not be a rental property or time share arrangement.
· Must not be subject to any arrangement that a management company will take control over the occupancy of the property.
· Max loan to value of 90%
· Typically 6 months mortgage payment as post-closing reserves needed.
· Seller assist allowed up to 6% with 75.01% to 90% loan to value.
· Minimum credit score requirement of 620, depending on the size of the down payment. Restrictions apply.
Best thing to do is contact a lender and discuss your options ahead of time so you can be prepared and be an informed buyer. So what are you waiting for? Make your dreams come true!
Rob LaPierre can be reached at (267) 207-7196.
Fairway Independent Mortgage Corporation is located at 321 Old York Rd, Suite 216 in Jenkintown, PA. NMLS ID#192175.