Second Home Mortgage Loans
Have you always dreamed of buying a lake home or a cottage along a river? Or perhaps you want a condo along Chicago’s lake front to enjoy all the city has to offer. Fannie Mae and Freddie Mac have made second home mortgage lending almost as easy as obtaining a mortgage loan on a primary residence.
According to Jeff Dulla, vice president of mortgage lending at United Home Loans, “conventional financing only requires a 10% down payment to obtain a mortgage loan for a second home property.” And Jeff adds, “interest rates are the same for a second home as they are for a primary residence, as long as the loan amount does not exceed $453,100.”
Of course the basics of mortgage lending still apply. You will need above average credit (700 or higher in many cases); sufficient liquid assets for the down payment, closing costs and at least two months of mortgage payments in reserve; and of course, stable income that can support your new mortgage payment in addition to your primary residence and other debts.
If you can meet these requirements, this may be a great time to purchase a second home. Prices are still affordable compared to the peaks set between 2005 and 2007. And although mortgage interest rates have increased, rates are still less than 1.0% off of all time historic lows.
United Home Loans is licensed to provide second home mortgage loans in Illinois, Indiana, Michigan, Minnesota and Wisconsin. Contact us below or at 708-531-8388 with any questions.