Residential properties are great investments. That’s why homeowners often want to purchase more than one. These properties usually fall into one of two categories:
Regardless of your purchase, you’ll likely need to take out a new mortgage on a new property while continuing to live in (and pay for) your current property.
What to Know About Second Homes
Lenders are more than happy to finance the purchase of a second home, but they are also a bit more careful. Two homes means two separate mortgages – an expensive undertaking even for the wealthiest of individuals. This, in turn, means more financial risk for both the borrower and the lender.
It’s still an excellent investment. It’s also one that will need careful consideration. The following are some important facts about these mortgages you’ll want to consider before you make the purchase.
Despite these issues, it’s been a fantastic market for both second homes and investment properties over the last several years, and for those who qualify, there are genuine benefits that can make each of these properties advantageous. For more information about whether you qualify for a second property purchase, contact one of our friendly loan originators today.
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