One of the great dreams people have in life is to own their home and once they do, it’s not uncommon that they consider buying a second home. The reasons for wanting to buy a second home are plenty so if you’re considering buying a second home, or even a first one, we can help you out on that journey.

Why Buy a Second Home?

There are two main reasons people typically want to buy a second home. The first reason is to use their home as a vacation home and the second is as an investment property. If you are looking for a home as a vacation property, you might want to look out of state or on the coast if you live in the city. If you are planning to use your home as a way to generate some income, you might want to look at homes in hot spots where AirBnB’s are popular.

A great benefit of buying a second home could be to spend more time with family especially if you have family members in varying locations. Instead of everyone flying cross country for the holidays, a centrally located vacation home could be a designated meeting spot, saving time and money for the entire family.

Another advantage of a second home is rental income. This is one of the most popular reasons to buy a second home and can be used as a short or long term rental property. As an investment property, you could have a steady source of income if you want to take on the landlord route, although that does come with additional responsibilities.

Challenges When Buying a Second Home

Buying a second home can bring on lots of new opportunities but it can also come with its challenges. The main drawback of owning a second home is the added responsibility. When you think of all the tasks that come with owning a home and double that, you’ll want to be sure it’s something you have the time and money to take care of before moving forward with that purchase.

Another risk you will be taking with owning a second home is the chance your home might be damaged while you’re not there. If your home is not occupied, you will definitely want to invest in some extra security measures if you’ll be away for long periods of time. Even if your home is occupied by a tenant, there could still be damages to the property so you’ll always want to have extra funds in your budget to manage things that come up while you’re away.

Financing a Second Home

There are plenty of ways to go about buying a second home, so it’s a good idea to research the loans available that would make the most sense for you. You might think about a jumbo loan, but won’t be able to use an FHA or VA loan for this type of purchase. There are also different rules and regulations when it comes to financing a second home which mean the income qualifications will be stricter than they would be on a first home.

Reach Out Today!

No matter the reason you want to buy a second home, we can help figure out the best route to take with your current financial situations. Reach out to our team at North Star Mortgage today!