Second Home or Vacation Homes
Are you a Florida Snow Bird? Are you drawn to this destination for boating, fishing, deep diving, golfing or other recreational activities? Is it the delicious seafood, or cultural diversity that draws you to Florida? Financing may not be out of your reach for a second home or vacation condo. The daily rate of housing cost is definitely cheaper than renting, better than the limited use of a time share, and the cost of a hotel stay.
In Florida your ability to finance a second home purchase or refinance on a second home may be impacted by association dues, the legalities of homeowner's community regulations and covenants, and the cost of insurance. However, you can look to Beacon Point to steer you in the right direction. So many people spend lots of time looking for condos, some find a cheap condo, many at price points under $100,000 but only to discover much to their frustration and that of their realtor to discover that lovely condo is non-warrantable, that the property itself is not compliant with regulations that govern most conventional and FHA loans. its so unfortunate their loans getting denied for something seemingly out of their control. Don't remain discouraged. This doesn't happen to Beacon Point customers. We even offer financing over condotels, condos that you own and that are managed as a hotel on a resort like property. Learn everything you need to know about financing a non-warrantable condo by clicking here.
Is financing a a second home purchase realistic for you?
Your ability to meet the below referenced down-payment requirement and additionally cover the costs associated with financing your purchase are the primary concerns in determining whether your purchase of a second home is realistic. Then all other criteria typically required for qualifying for financing a purchase must be satisfied. We have prime loans and non-prime loans available to fund your purchase. Get Quote
The down payment for a second home is usually higher than on a first residence. Why/ Because, lenders require more of an equity cushion in the property given that the risk of your default or casualty to their collateral is higher because (a) you do not live there full-time (things could go wrong which endanger the lender’s collateral) and (b-) it creates greater debt service, adding on to your existing debt load.
Slightly Higher Interest Rate
Why are mortgage rates on second homes generally higher than on a primary residence? The added adjustment to the prime rate, makes the mortgage appeal more to the investors who buy the rights to collect dividends on the mortgage. The rate of course compensates the for the real risk presented to a lender and its investor in extending financing over a non-primary residence.
Full Documentation or
No Income Tax Returns
Not everyone has a perfect 750 score and 20% cash as a down payment on their mortgage or tax returns to prove up sufficient income to qualify for a traditional loan. Yet, you are a successful self employed professional or business owner. Beacon Point has the perfect win-win solution for you.
21 Day Closing
Within a vast portfolio of Mortgage products Beacon Point usually finds that Ginni Mae mortgages are a good fit for our second home clients. Unlike Ginni Mae's cousins Freddie Mac and Fannie Mae, Ginnie Mae is not a publicly-traded company, it is a federally-owned corporation. An investor in a GNMA security will not know who the underlying issuer of the mortgages is, but merely that the security is guaranteed by GNMA, backed by the full faith and credit of the U.S government, just as U.S. Treasuries. Investors with shares in Ginnie Mae funds never have to worry about late payments or mortgage defaults. If and when mortgage borrowers fail to make payments, Ginnie Mae steps in to honor those missed payments.
MAX LTV 90% WITH
CREDIT SCORE 700
Other lender restrictions may apply.
Facts About Ginnie Mae
The first organization to create and guarantee mortgage-backed securities in 1970.
Continues to provide these funds ever since.
By offering guarantees on securitized loans, Ginnie Mae is instrumental in keeping the nation's housing market moving.
Investments in Ginnie Mae funds help create new lending opportunities.
Even in uncertain times, investors are guaranteed payment of interest and payment, in full and on time. Because they know they'll always receive payments, lenders are able to create more mortgages at more affordable rates.
For our second home clients at Beacon Point Mortgage Solutions, Ginnie Mae is a good fit for second home purchase & refinance whereas other agency loan applications would get declined with manual underwrites or fail agency desktop underwriting, require larger down payments, and up-charges on interest rates.