The joys of homeownership are abundant. You no longer have rent increase worries, can renovate and redecorate to your heart’s content and with the potential to build equity with every mortgage payment.
So, it’s no surprise if you’re considering a second home to potentially experience even more benefits. Fortunately, there are loan options to help you finance your investment, and The Federal Savings Bank is committed to providing mortgage solutions to help you reach your homeownership goals.
As you start the process of securing financing for your second home, find out why you should invest in a second home, how you can buy one and why you should work with us for your mortgage needs.
Why Buy a Second Home?
As stated previously, a second home can provide a handful of benefits, but what can you use it for?
Vacation Home
If you travel to a specific location often, need to be closer to family or just want a getaway from your usual routine, a second home can serve as a great vacation home. You can take a vacation for as long as you like without having to pay per night for a hotel or worrying about the cleanliness of the previous visitors. It can also be a great place to spend quality time with family and friends away from the monotony of everyday life.
Investment Property
A second home can be a great way to earn some supplemental income. If being a landlord is within your abilities, you can rent out your second home to earn some extra money. Having multiple sources of income is smart, and real estate can not only provide that, but it can also diversify your investment portfolio and potentially give you tax breaks.
If you choose to use your second home as a source of income, however, many lenders require you to live in it for a certain period of time among other requirements. Make sure to speak with your lender to understand the full extent of these guidelines.
Retirement Plan
If you don’t see yourself living out your golden years in your current home, a second home can be a part of your retirement plan. You may even want to consider renting it out to make some money and pay off your mortgage before you move in. This way, you can age in place on a property you’re already familiar with and may prefer over other retirement options.
How a Second Home Loan Works
The minimum requirements for you to buy a second home can vary between lenders, but in general, your credit score and debt-to-income ratio (DTI) must meet set qualifications. At The Federal Savings Bank, you can pay as low as 5% down if you have a FICO® credit score of 700 or higher, allowing you to save on some upfront costs than if you were to pay the required down payment on other types of loans.
Additionally, the second home must be located a certain distance away from your primary residence, must be a one-unit, single family residence and cannot be under a property management company.
Why Work with The Federal Savings Bank?
With our team of experienced mortgage professionals, user-friendly application process and wide selection of loan products, The Federal Savings Bank is committed to helping you find the loan solution that works for you. Here’s how we stand out from the competition:
Ability to Lend in all 50 States
No matter where you decide to buy your second home, we can help you find a financing solution. We’re able to lend in every U.S. state and have physical offices across the country. Find our closest location to you here.
Personalized Customer Service
We know each borrower’s individual needs are unique. Our mortgage bankers get to know and understand you on a personal level to ensure you receive the advice, loan options and guidance that work for your personal situation and goals.
In-House Operations
When you work with us, you won’t have to worry about who is overseeing your transaction. From application to closing, only The Federal Savings Bank’s employees are touching your loan, and your mortgage banker works closely with every team to help ensure that your loan is moving along as efficiently as possible.
4.94 Stars on Zillow®
Sometimes, you need to see the proof for yourself. Find out why we’re rated 4.94 stars on Zillow®.
Buy Your Getaway Home
Homeownership allows the kind of freedom you can’t necessarily get anywhere else. A second home can help you achieve even more benefits. Whether you’re looking to get away from it all once in a while or need a place to settle down once you’re older, a second home can be that solution.
Are you ready to take a step closer to your second home? Get in touch with one of our mortgage bankers today!
This article is intended for general informational and educational purposes only and should not be construed as financial or tax advice. For more information on financial planning or investment advice, consult a registered investment advisor or financial planner. For tax advice, please consult a tax professional.
This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation.
