Send us a message

Contact us today

Main office

(303) 595-0110

Is a Second Home Mortgage Right for Me?


The Spire

Whether you are a city dweller with a soft side for the beach, an empty nester dreaming to be closer to children or extended family, or a seasoned buyer interested in diversifying your property portfolio, there is a strong chance you have considered the option to buy a second home. While this can be a sound financial move in many cases, it is important to understand the process of getting a second mortgage and make an informed decision.

Obtaining a mortgage for a second home follows some of the framework as buying a primary residence, although a higher down payment may be required and you may experience higher interest rates. This is due to an overall larger risk associated with this type of property purchase. This is due to the bank understanding an owner is more likely to default on a property they don’t live in as it won’t affect their family’s living situation. If you are buying in a state other than where you primarily reside, you may also be subject to different tax laws and implications.

Generally, requirements for second homes include:
· A credit score in the 700’s, although a credit rating above 640 can qualify if the other areas of risk are low
· Evidence of consistent payment history on your primary residence mortgage
· Income confirmation to support a second mortgage payment
· 10%-20% down payment
· Title to be held in your name
· Minimum part-time occupancy by owner

An underwriter will consider the layers of risk for the items above so it’s important to note that even if you meet all of the minimums listed above, your overall risk might not pass the threshold for approval.
When deciding whether a second home is the right financial decision for you, it is important to consider budget (including insurance, repairs and applicable HOA fees), current interest rates on second mortgages, lifestyle, and overall needs for the property before finalizing your decision. We’re here to help you discover the best solution for your home lending needs!

A Lending Hand for Financing Home Mortgages

Spire Financial (A Division of V.I.P. Mortgage, Inc.) brings lending expertise to you. All of our loan officers offer personalized communication for every client, guiding them through the process. We can show you ways to maximize your finances and unlock future opportunities. Spire Financial keeps you in control of refinancing, debt consolidation, and home equity. Together, we can achieve your financial goals.