Vacation Home Mortgage
in California
- 5-Star Rated Mortgage Broker
- Investment Property Loan Programs
- Second Home Mortgage Loans
- Turn Your Dream Vacation Home into Reality
- Based in Los Angeles – Serving All of California
What type of property are you refinancing?
Single Family
Multifamily
Condominium
Townhouse
How will this property be used?
Primary Residence
Vacation Home
Investment Property
Estimate credit score
Excellent 770+
Good 660-719
Avg. 620-659
Below avg. 580-619
Poor <579
How can we help you today?
Home Purchase
Refinance
What type of property are you purchasing?
Single Family
Multifamily
Condominium
Townhouse
Are you a first-time home buyer?
Yes
No
How will this property be used?
Primary Residence
Vacation Home
Investment Property
Estimate credit score
Excellent 770+
Good 660-719
Avg. 620-659
Below avg. 580-619
Poor <579
Final Step
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Summary
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Getting a Mortgage for a Vacation Home
Dreaming of owning a vacation home in California but unsure how to finance it? You’re not alone! Whether it’s a cozy cabin in Big Bear Lake, a beachfront retreat in Oceanside, or a ski lodge in Lake Tahoe, we can help make it happen.
With the right vacation home mortgage, you can enjoy your dream getaway while building equity in a valuable property. Let us guide you through the loan process and find the best financing options for your second home.
Owning a private getaway where you can escape anytime sounds like a dream—but it doesn’t have to stay that way! With a vacation property loan, turning that dream into reality is easier than you think.
Say goodbye to the hassle of booking hotels and enjoy full control over your own vacation retreat! Whether you’re looking to purchase or refinance a vacation home in Los Angeles or anywhere in California, we’re here to help you secure the best loan options.
Investment Property or Vacation Home?
Before purchasing a vacation home, keep these important factors in mind:
- Owner Occupancy Requirement – You must live in the home for at least part of the year.
- Limited Rental Use – The property cannot be rented full-time and must be solely in your name.
- One-Unit Home – Multi-unit properties do not qualify as vacation homes.
- Location Matters – The home must be a certain distance from your primary residence.
- Rental Income Restrictions – You cannot use potential rental income to qualify for a vacation home loan.
Have Questions? Reach us out:
Hours: Monday-Friday 10:00 AM - 5:00 PM
In-Person at LA Office
1810 W Burbank Blvd #150, Burbank, CA 91506
Cell-phone
M-F 10 AM-5 PM (PST)
On-line
Simply e-mail or use online-chat
The Benefits of Owning a Vacation Home
Think a vacation home is only useful for summer getaways? Think again! Owning a second home in California can be a smart long-term investment for you and your family. Here’s why:
A Getaway Anytime You Need It
Skip the hassle of booking hotels—just pack up and head to your vacation home whenever you need a break. Whether it’s a weekend escape or a longer retreat, your own place offers comfort, privacy, and convenience whenever you need it.
Long-Term Financial Growth
Vacation homes in popular destinations tend to hold or increase in value over time. Before purchasing, research property trends, nearby amenities, and accessibility to ensure a strong investment.
A Retirement Plan in the Making
Buying a vacation home before retirement allows you to test out a new location before making it your permanent residence. If you love the lifestyle, you can eventually sell your primary home and reduce your mortgage debt.
Tax Benefits
If you use your vacation home as a second residence and rent it out for fewer than 14 days per year, you may qualify for a mortgage interest tax deduction. Be sure to consult a tax professional for details on potential tax savings.
Vacation Home Loan Process
Four easy steps to your second home:
Step 1
Pre-Qualification
Talk to Us to Know Your Options
Step 2
Find Your Dream Home
Enjoy a Home Shopping Experience
Step 3
Pre-Approval
Get a Loan Approval on the Terms You Want
step 4
Closing
Enjoy Your Homeownership
How to Qualify for a Vacation Home Loan? Requirements
Buying a vacation home comes with different lending requirements than a primary residence. Here’s what you’ll need to qualify:
Credit Score
A 720-740 credit score is ideal for the best rates. The minimum required score is 600 to qualify for financing.
Income to Support Both Properties
Your total debt-to-income ratio (DTI) should not exceed 43-45%. This includes your primary mortgage, vacation home loan, car payments, student loans, and other debts. Example: If your pre-tax income is $10,000 per month, your total loan payments should not exceed $4,500.
Proof of Vacation Home Use
Lenders require assurance that the home is truly a vacation property, not an investment rental. To qualify, the vacation home must be located at least 50 miles away from your primary residence.
Down Payment Requirements
At least 10% down is required for a vacation home purchase. 20% down will unlock the best interest rates and eliminate the need for private mortgage insurance (PMI). If you don’t have savings, some lenders allow borrowing for your down payment.
Additional Financial Reserves
Lenders require at least two months of reserves to cover mortgage payments and expenses. If you’re self-employed, you may need six months’ worth of reserves for approval.
Apply for a Vacation Home Loan
Tired of vacation rentals and hotel stays? Owning a vacation home gives you the freedom to enjoy your own private retreat anytime. If you plan to live in the home part-time, you may qualify for an owner-occupied home loan, which offers better terms than investment property loans.
🏡 Looking to refinance? We can also help you lower your monthly mortgage payments by refinancing your second home.
A vacation home is a smart investment, especially in Los Angeles and across California. Contact us today to explore your loan options! 🌴✨
Vacation Home Loans in California FAQ
How do vacation home loans differ from primary residence mortgages?
Vacation home loans finance secondary properties where the borrower does not live full-time. They usually require a higher credit score and down payment than primary residence mortgages. Additionally, they might have higher interest rates since these properties carry greater risk for lenders due to potential vacancies and unpredictable rental income.
What credit score do I need to qualify for a vacation home loan?
Most lenders prefer a minimum score of 680 to provide favorable or average interest rates on a vacation home loan. A few might consider going down as low as 620; however, the terms will not be favorable, and the interest rates will be much higher. Therefore, try to improve your score to get better terms at the time of application.
How much of a down payment is required for vacation home loans in California?
Lenders typically require a minimum down payment of 10% to 20% for vacation homes. The better the interest rates, the larger the down payment required. For that reason, planning at least 20% can help reduce overall borrowing costs.
Can I rent out my vacation home to offset mortgage payments?
Yes, many vacation homebuyers rent their vacation homes out to help defray the cost of the mortgage. Most lenders have some restrictions, such as the owner has to occupy the house a certain number of days per year. Ensure your loan terms allow renting, and check in with local regulations regarding short-term rentals.
What’s the difference between a vacation home and an investment property?
Personal use refers to a vacation home, even though that might sometimes be rented. An investment property has been purchased to earn rental income or sell to obtain profits. Lenders consider investment properties riskier and take higher down payments with more rigid lending standards than vacation homes.
What are common challenges in obtaining a vacation home loan, and how can I overcome them?
The challenges are: higher down payments, very strict credit score criteria, and formidable financial reserves. To increase the possibility of securing loans:
- Save for a higher down payment to obtain better rates.
- Pay down debt and clean up errors on your credit report to further improve your credit score.
- Keep your income stable, with enough savings to show your ability to handle more than one mortgage.
Can I refinance my primary residence to buy a vacation home?
Refinancing your primary residence to pull out equity can provide the funds for a vacation home purchase. However, this raises your overall debt burden, so make sure you can handle both mortgage payments comfortably. You may want to discuss with a mortgage broker or a financial advisor how refinancing will affect your situation.
How can I prepare financially to buy a vacation home in California?
Begin by thoroughly assessing your budget, considering both the upfront costs (down payment, closing costs, inspections) and ongoing expenses (maintenance, insurance, property taxes). If you plan to rent it out, research local regulations and market demand. Work with a mortgage broker to evaluate different loan options and ensure your finances align with the additional mortgage commitment.
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