second home

vacation home


Can I buy a Second Home?

Having a place to stay near the beach, the lake, the mountains or your favorite resort area offers many potential rewards. When you buy a vacation home, we can help you understand the financial and personal benefits that go along with the purchase, including:

• Rental opportunity- If your home is in a popular vacation spot, you may be able to rent it and earn additional income when you’re not using it.

• Ongoing income and cash flow- If you choose to rent your vacation home, it could provide ongoing income to offset your expenses, and may provide tax benefits in the form of depreciation expense. Restrictions apply. (Consult your tax advisor regarding the deductibility of depreciation expense.

• Potential tax benefits- Mortgage and home equity interest payments and property taxes may offer the opportunity for tax advantages. (Consult your tax advisor regarding the deductibility of interest.)

• Potential property appreciation- A vacation home may be a good long-term asset to hold as homes can increase in value.


What should I consider before purchasing a vacation home?

There’s more to buying a vacation property than having a place to relax. Whether you purchase a single family home, townhome or a condominium—there are some items you should consider:

• Consider whether you will occupy your vacation home as a second home exclusively or if you plan to rent it out to others, when you’re away. You may need to install an owner’s closet, provide furnishings or safety features with future renters in mind.

• Home values can fluctuate and will change over time. This means property values can decrease. Every community and situation is different so it is important to keep this consideration in mind.

• You may have other expenses in addition to your monthly mortgage payments on the property — such as homeowners association dues, cleaning services, flood insurance, and utilities.

• Carefully consider your monthly cash flow to ensure that you’re able to manage the additional expenses.

• You will need to calculate the amount needed for closing costs and associated expenses (such as repairs, cosmetic improvements, and furnishings for your vacation home).


How much will I need for a down payment?

For a Fannie Mae Fixed Loan

fannie mae fixed loan