Vacation homes. Not mortgaged as investment properties.
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30 year fixed rates
- Thread starter 30ashopper
- Start date
Vacation homes. Not mortgaged as investment properties.
Here4Good
Beach Fanatic
Then I think what I am hearing from everyone here is that there is still money out there for primary homes, if you come up with a 10% down payment, and have good credit. Sounds to me like a return to normal lending practices. This is exactly the guidelines we had to meet when we bought our last home in Georgia in 1997.
I know I sound as old as Kitty, but back in the day when I did mortgage lending (the 1980's), you absolutely had to have 25% down for anything that was not your primary residence. We just didn't have a lot of sources for that money, and this was in Colorado where second homes are not unusual at all. Second homes were underwritten more stringently than investment (income) property. Investment property was underwritten like a business loan, with income statements and proof of leases or prior rental history from the seller. It was not unusual for second homes to be cash purchases. Of course, a lot of those truly were "cabins" - and fairly inexpensive.
We would do second home loans for very good (bank) customers for whom we had already done their primary home
I know I sound as old as Kitty, but back in the day when I did mortgage lending (the 1980's), you absolutely had to have 25% down for anything that was not your primary residence. We just didn't have a lot of sources for that money, and this was in Colorado where second homes are not unusual at all. Second homes were underwritten more stringently than investment (income) property. Investment property was underwritten like a business loan, with income statements and proof of leases or prior rental history from the seller. It was not unusual for second homes to be cash purchases. Of course, a lot of those truly were "cabins" - and fairly inexpensive.
We would do second home loans for very good (bank) customers for whom we had already done their primary home