Buying your first home is a huge step in many people's lives. It is exciting and provides a sense of accomplishment. You know what provides nearly the same level of excitement and pride? Buying the vacation home! When you purchase a vacation home at Lake of the Ozarks, you're entering into the lake lifestyle, a luxurious and leisurely experience.
When the time comes to secure your dream vacation home, financing can be a powerful asset. Let my years of lending expertise work for you to secure your second home mortgage at Lake of the Ozarks. Continue reading our blog to discover ways to secure your new home away from home.
Types of Financing
When it comes to financing a vacation home, there are a couple options that homeowners can utilize. Below we will describe the two options available and go into some details about each.
Conventional loans for vacation homes are structured very similarly to that of a primary residence loan. There will be a required initial down payment, which can vary in percentage based on qualifying factors, but they can be as low as 10% down. The loan payment plan will be amortized over the course of 10-30 years. This type of loan can be secured as fixed or adjustable interest rates.
A Home Equity Line of Credit (HELOC) is just what it sounds like, a line of credit tied to the equity you have built up in your home via continued regular payments. This type of loan is separate from your conventional loan, so if you already have a conventional loan on your primary home, this would count as a second lien. HELOC's typically offer adjustable interest rates and have varying draw/payment terms.
Vacation Home Mortgage Checklist
If you're in the market for a vacation home, it's likely that you have some experience in purchasing real estate. However, it never hurts to have a friendly reminder every now and then. When preparing to secure financing for a vacation home, it is important to have a few items covered before you start house hunting to ensure a smooth and timely closing.
- Good credit
- Ability to make down payment/closing costs
- Low debt-to-income ratio
- proof of vacation home status vs. investment property
Let's Get Started
Team Lasson has been assisting clients in securing their very own vacation homes at Lake of the Ozarks for years. We are proud to be able to serve the homeownership and financing needs of our community, as well as helping to expand the community by establishing quality vacation home mortgages at Lake of the Ozarks. So, when you're ready to purchase your second home, let us help you get to the beautiful Lake of the Ozarks.