Tag Archives: Buy Second Home

Before Buying A Second Home, Ask These Questions

There are a lot of things to consider when buying a second home. For instance, will you use the home exclusively, or will you rent it out for tourist season? Did you know income-tax rules are different for second homes and rental income? Did you know some homeowners’ associations have rules prohibiting rentals?

This leads me to these financial questions you need to be able to answer if you’re considering buying a second home. Continue reading Before Buying A Second Home, Ask These Questions

The Skinny On Investment-Home Loans

Florida-Mortgage-Firm-Investment-Homes

While some types of mortgage programs may not be used to purchase investment homes — such as FHA, VA and USDA loans — conventional loans are available for single-family homes from 1-4 units (single family, duplex, triplex and quadruplex).

The beauty of these loans is that projected rental income may be used to qualify for the mortgage. A 25% down payment would typically be required for this perk, but there are lower options.

Of course, interest rates on investment loans are higher than those for primary residences, but often an investment can more than compensate for the disparity. Many investors, including employees at Florida Mortgage Firm, have found real estate to be an amazing financial vehicle with many exit strategies.