Buying A Second Home

If you are thinking of buying a second home for any reason you should weigh all the pros and cons before you commit yourself to another mortgage.

Buying a second home. 4 keys to buying a second home. Owning a second home may come with perks like potential tax write offs depending on how you use it. You want to buy a second home.

Some may want a vacation getaway some are seeking rental income and others want to purchase a fixer upper for their retirement years. You will need a conventional mortgage. Don t come back from vacation with the keys to a new house without having thoroughly researched your purchase first.

You may be able to get a second fha loan. Though taxes are inevitably a burden a little advance planning during the house hunting process can save you thousands of dollars a year. But a second home for vacations is very different from an investment property you buy to generate income.

Government loans are not available for a second home. Buying a second home means taking on more than just mortgage costs. Realtors say putting 20 percent down or more is common for second homes to avoid the expense of mortgage insurance and given today s tightened lending practices.

Second home owners need to worry about both property taxes which vary by state and locality and if renting out the place income tax. Hazard insurance may be higher in some resort locations such as beaches. Fha loans are intended to encourage homeownership it s a favorite among first time buyers.

Buying real estate as an investment property or second home won t be the. Property taxes insurance maintenance and repairs come along with the keys to a secondary property. People have various reasons for wanting to buy a second home.