Vacation or second homes can be for your use or even for renting out part of the year. If you’re not renting it out, you might be able to book it by paying as little as five percent of the home’s price, just like you would for your main home.

But, if you plan to rent it out and make some money, you might need to put down a bigger payment – usually about one-fifth of the home’s price. The interest rates for these homes are similar to what you’d get for your main home, but it can depend on things like your credit score, where the home is, and the rules of the lender.

Just like with your main home, the vacation or second home needs to be in good shape and at a good location according to the lender. They’ll also check your income, credit score, and debts to make sure you can pay for the extra mortgage.

If you’re not putting down twenty percent to book the home, you’ll need to get mortgage insurance. If you want to know more about getting a mortgage for a vacation or second home, give Gary Hundal Mortgages a call.