Category: Vacation Homes

There’s Still Time to Buy a Vacation Home this Summer!

Posted on July 9, 2018 by Anthony Bird - Buying a Home, Vacation Homes

Michigan is a summer paradise where thousands travel to vacation from around the world each year. Surrounded by the Great Lakes and endless tourist attractions, there is no place on earth like Michigan. For those of us that live here year round, it is easy to take fore granted the beauty that surrounds us. There is no better way to enjoy each day than on or around the lakes of Michigan.

Buying a vacation home in Michigan may be the perfect solution for your and your family to enjoy our natural surroundings. Our low down payment vacation home loans makes owning a 2nd home affordable for many families. Mortgage rates are still low and will allow you to lock in low payments for your family’s recreation for years to come.

Top Reasons to Buy a Vacation Home in Michigan

There are many benefits to owning a vacation home in Michigan including:

Take advantage of Michigan’s Summers
Lock in low payments for family recreation
Make extra money renting your vacation home from time to time
Historically, owning real estate is a great investment
Potential Tax Benefits

Wondering if you can afford a vacation home? Use our Conventional Mortgage Calculator to estimate total payments to buy a home!

How to Buy a Vacation Home in Michigan

The first step is to call a license loan officer for a mortgage pre-approval. It is important to understand the price range you should be house shopping in for your desired payments. A loan officer will review 2nd home down payment requirements, vacation home loan rates and loan options.

Once you are pre-approved for a mortgage, the next step is to find an experienced Realtor that can show you vacation homes in the Michigan area. They will be able to set you up on automated searches for your target area and suggest potential options within your budget. The great news is a buyer’s real estate commissions are typically covered by the sellers.

After you have found a vacation home and received an accepted offer to purchase, you will be walked step by step through the home loan process by your loan officer. They will provide updates along the way and answer any questions that you may have.

Once your loan is cleared for closing, you will meet at a local title company for the closing. Once you sign your paperwork you will be given the keys to your new home!

Expert Vacation Home Tips:

Buy in an area that you can easily travel to.
Make sure the property is suitable for year round living.
Consider a security system for your vacation home to protect it while you are away.
Make sure you know if the property has Home Owners Association Dues and what benefits the association provides.
Keep your vacation home supplied with a second set of the essentials so you can pack lightly for quick trips!
Do not forget to plan time to enjoy your vacation home!

If you have been considering buying a vacation home in Michigan, call us at 1-800-555-2098 or simply apply online below. We are happy to help!

Invest in Property with a Minimum Down Payment

Posted on May 22, 2017 by Andrea Osmun - Buying a Home, Mortgage Tips, Vacation Homes

Two weeks ago, we discussed how first-time home buyers and those with little money could buy a house with a small down payment. For those of you who have a large savings account and excellent credit, here are some options for investing in property, whether it’s a new home or a second home, with a minimum down payment.

Conventional Mortgage Down Payments

Conventional mortgages are best for those with perfect or near-perfect credit. If you have at least 20% down payment, you can avoid paying for PMI (private mortgage insurance). The federal government does not guarantee or insure this kind of loan, and it’s limited to loans up to $453,100. Those buying multi-unit homes can qualify for larger loans, though. The minimum down payment required for a conventional mortgage is 3%, although Riverbank Finance allows you to put down as little as 1% (see Conventional 1% Down Mortgage).

Jumbo Loan Down Payment

A loan of more than $453,100 is called a Jumbo Loan, according to Fannie Mae’s guidelines. Most banks do not have jumbo mortgages, but Riverbank Finance specializes in it. There are many options for jumbo loans, including a 40-year fixed rate, 30-year fixed rate, 15-year fixed rate, 3/1 Jumbo ARM, 5/1 Jumbo ARM, 7/1 Jumbo ARM, and an interest-only Jumbo Loan. You will need at least 10% down payment to qualify for most jumbo loans, although 20% is encouraged. However, if you’re buying a home in a high-cost area, such as Hawaii, California, Alaska, or Guam, you may not need a jumbo loan at all.

Vacation Home Down Payment

If you want to invest in a vacation property for personal use, Riverbank Finance allows for a minimum 10% down payment, although you can waive PMI with a 20% down payment. The requirements are a bit stricter here: You can’t have any recent foreclosures or bankruptcies, you must provide documented banking or retirement assets, your DTI (debt-to-income ratio) is limited to 45%, and the property you’re considering needs to be in acceptable condition.

Investment properties Down Payments

If you want to buy investment properties to rent to other people, you will need to have at least 20% down payment with Riverbank Finance. Your total DTI cannot exceed 45%. Freddie Mac requires you to have at least two years of landlord experience, documented in your tax returns, to consider any projected rent as your income. However, Fannie Mae does not. You must buy the property as an individual, not an LLC, and you cannot receive any amount of the down payment as a gift. You will also need at least six months’ worth of house payments reserved in savings to qualify.

For more information or to speak with a loan officer about any of these mortgage options, call Riverbank Finance at (800) 555-2098.

Buying a Vacation Home

Posted on April 17, 2017 by Andrea Osmun - Local Michigan, Mortgage Tips, Vacation Homes

What you need to know about buying a vacation home

You’ve been comfortably settled into your home for quite some time now, and you are financially stable. You may be nearing retirement or are craving a place of relaxation and leisure where you and your loved ones can get together without the hassle of booking hotels. A vacation home in Michigan may be just what you need. Before you jump in, you should understand how buying a vacation home is different from buying a primary home. Here’s what you need to know:

Location.

Your idea of the perfect vacation home may be on the beach, in the mountains, or in a small lakeside town along the white sands of Lake Michigan. Before you decide on the exact location, find out about the growth opportunities in the area you’re considering. Having a vacation home in a popular tourist spot can appreciate the value of your home over time, making it a great long-term investment.

Associated costs.

Interest rates for second homes are typically higher than they are for primary homes. Our mortgage calculator can show you what those rates would look like. When you apply for a mortgage on a second home, mortgage underwriters typically look at the costs associated with the principal amount, interest, property taxes, insurance, and any Homeowners Association dues that come with the property.

Likewise, owning a second home means you’ll have to be prepared for added expenses, such as travel, maintenance, repairs, utility costs, and household necessities. One way you can recoup those costs is by renting out the home when you don’t plan on using it yourself.

Down payment requirements.

When buying a primary home, you can put down as little as three percent, and in some cases, no down payment at all. However, FHA and VA loans don’t apply to second homes. In most cases, your lender may want you to put 10 percent down on your vacation home. If you plan on renting out the property on a part-time basis it could be considered a rental property which requires a 20 percent down payment.

Vacation Home Mortgage qualifications.

When you buy a vacation home, the lender will expect you to have saved at least two months of mortgage payments on your primary home and vacation home if you have reliable income, and six months of mortgage payments if you are self-employed. This is to protect you and the lender in case your income is interrupted for any reason. You may also be required to have a higher FICO score and a lower debt-to-income ratio than you would with a primary home loan.

Owning a vacation home can be a great long-term investment and a wonderful getaway for you and your loved ones. However, the process is often difficult, as the lending requirements are more strict. Contact a mortgage loan officer at Riverbank Finance to discuss your best options for purchasing your dream vacation home.

Apply for a Vacation Home Mortgage

To apply for a Vacation home loan, call Riverbank Finance today at 1-800-555-2098.