Many of our great properties here on jimmyrussell.org would make great full time or vacation homes.  If you have been dreaming of the perfect mountain getaway or water access home but don’t know anything about the process of buying a second home, here are some tips!

1. Reserves are key.  While on your first mortgage you can get away with putting 5% or even 3% (or with a USDA possibly 0%!) down, on a second home most lenders are going to want to see a more significant investment.  Usually lenders are looking to see between 10% and 20% down.

2. For your own sanity and prosperity, it is important to consider that any housing expenses (utilities, HOA fees, etc.) are also likely to double and, if something is to break, maintenance funds need to be set aside.  Make sure you will still be comfortable with the “disposable” income you will have left. (You don’t want to have a great vacation property and then be unable to afford gas to get there!!!)

3. If you are planning to rent out your vacation home to offset some of your expense, be upfront with your lender.  You may be required to make a larger downpayment, but honesty in the lending process could save you a lot of headache.

4. Location is key!  Make sure you are investing in a space that you will love for the years to come and, also, is likely to appeal to others.  Being marketable if you ran into a pinch could save a lot of headache and heartache.

If you are interested in purchasing one of our beautiful properties, either with an existing home or a lot on which to build your dream home, please call us today at (540)437-9570!