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Second Home Loan Requirements

Things to consider when buying a second home

How can you afford a second home in Orange County, California without a mortgage? It can be done. Coming into winter or fall, we often think about how wonderful it would be if we could simply head off to warmer parts for a good portion of the year. Or maybe we love winter sports, and would love to take off to the mountains for the colder times of the year.

If the summer brings you joy, or the winter gets your adrenaline flowing, it's whatever works for you. Either way, you're thinking about a getaway property, but you don't want to burden yourself with second home mortgage. So what do you do?

Think About How to Pay for It

Vacation homes aren't always expensive. But you still have to make sure that a vacation home is within your budget - you have to make sure that you can handle the taxes, the maintenance, utility bills and so on. It is also important to know about home mortgage rates. And the next question is what are the second home loan requirements?

You Could Pay Cash

If you can save up enough money, obviously, cash is the best way to buy your second home. And you might be surprised to know that you're not exactly in the minority - in 2010, 36% of second home buyers actually paid cash. Of course, you will have to have deep pockets if you're going to buy a second home without a mortgage. Otherwise, find out the second home loan requirements.

Home Equity Loan

If you have a lot of equity in your existing property, you might want to consider a home equity loan to buy your second property. Realistically, though, most homeowners simply don't have enough equity in their existing properties. It can be hard enough keeping up the payments on your existing home, never mind a second home. If you are still interested in buying another house, then you need to know about second home loan requirements and what are the current home loan rates.

Conventional Loans

You could take out a conventional loan for a vacation property or a second home, but you have to know that your interest rate will likely be high, and that you'll likely have to pay about 20% down to get the loan. It could even be as high as 35%. The second option of course is to get a home loan and see what are the second home loan requirements.

You Could Rent Your Home

You could buy a second home in Orange County, California, and then rent out your original home to bring in income. However, it's not always going to be likely that your lender will consider your equity in your existing home. They may also require proof that your existing home can be rented consistently. In such a case, the only option you are left with is to find out about home mortgage rates and get a second home mortgage.

The Final Word

If you're thinking about buying a second home in Orange County, California, and you want to do it without a second home mortgage, you may have to consider renting out your existing home. But it's not always going to work out the way you want it to be. So, if you're thinking of buying a second home without home loans, here's the bottom line - think about buying a second home WITH a second mortgage. It may be the only way you can afford it. So, what are you waiting for? Inquire about home mortgage rates and get going!