Vacation Home Mortgage Loans in California
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.
What Our Clients Say About Us
My husband and I bought a house through LBC Mortgage company. Alex made it so easy on us! To be honest, I was terrified of all the paperwork buying a house and getting a loan assumes. I was pleasantly surprised! Alex and his team helped us with getting loan approved and close fast. I would highly recommend this company.
I must say that this office is one of the few businesses I can always count on, both professionally and personally. So when it comes to California real estate funding in general and residential in particular, I’ve been entrusting my dear clients ranging from locals to foreigners to these good folks that I trust with my own loans!
Excellent experience all around From the initial mortgage application, to the closing. I want to thank everyone involved in getting this file closed and funded . It was a tricky file and Alex and his team went above and beyond to get it resolved. Highly Recommended !!! A+ Service.
Great company and easy to deal with them. Very understandable and prompt. I was dealing with Alex and he helped closing loan on time. LBC mortgage kept their words and provided 5 star service.
I am getting into the business of investing in real estate , in this business you need to act fast , and you need to be able to get financing for the property super fast ( or pay cash ). Alex approved me for the loan fast , escrow was closed on the 27th day!!! And got me a rate almost a full percent lower than i was expecting. I will contacting Alex for sure for my next investment purchase.
LBC Mortgage team did a wonderful job with my new home loan. They were efficient, friendly, and did a great job from the beginning to the end. They even got me a lower rate on my loan than I was expecting. If we ever need a new mortgage. I’ll definitely be calling LBC Morgage again.
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.