Financing a second home or vaction home comes with a different set of financing rules than financing a primary residence. Before apply for a vacation home loan, you should know that:
- You may need at least two months of cash reserves
- You'll need to put at least 10% down
- Credit score requirments are higher than for a primary residence
- Interest rates are slightly higher than for a primary residence
- You could potentially use rental income to help cover your mortgage payment (you must live in the your vacation home for at least part of the year).