Do you dream of waking up in your own home overlooking a mountain or a beautiful lake? If your dream vacation home is in New Hampshire, we can help make it affordable for you with low, fixed rate vacation home loans. We finance a variety of second home types like condominiums, single-family homes and three-season properties.
Obtaining financing for your second home isn’t much different than qualifying for your primary residence. We evaluate your liquid cash/savings, your credit, your income, and the property. From a cash stand point, expect to have at least a 10% down payment. You need to have a credit score in the mid 600s or higher. You will have to show enough documented income to be able to pay back the new mortgage in addition to your existing monthly debts. You cannot have more than a 45% debt to income ratio.
As a rule, we like financing condos that are true second homes, not vacation rentals. If you are purchasing a home in a development where most of the homeowners use their home exclusively for their own enjoyment, we are likely to offer you a fixed rate mortgage. If the condo development you want to buy into has an onsite rental office and Concierge services, we’ll likely offer you a Portfolio Adjustable Rate Mortgage rather than one of our normal fixed rate programs.
Single Family Home
If you are purchasing a regular single family home that is suitable for year round occupancy, you can expect the financing to be very similar to the fixed rate financing offered on primary residences with as little as 10% down.
Three-season properties are common and typical in many NH vacation destinations. These properties vary greatly in their level of finish from hunting shacks to opulent island properties. If the vacation home you want to purchase is seasonal, we have great fixed rate mortgage financing for those properties that must meet at least the following requirements.
• Single family home
• Water to the dwelling must be potable (drinkable).
• The drinking water must be piped in and not hand carried. When the water is from an unprocessed open source (i.e. lake water) a water test for potability is required. Note: Wells are not an open source.
• All facilities common and customary for residential dwellings that are needed in the remaining three seasons must be present, i.e. running water that is treated water must be available as well as electric service and sanitary facilities, such as toilets and septic systems.
• Heat sources if not needed for occupancy of the remaining three seasons would NOT be required.
Warning: The property is expected to be suitable for living for three seasons of the year. If the property is diminished from a regular year-round home by multiple deficiencies, it may no longer meet our definition of a three-season home.
Get prepared. If you are interested in purchasing a second home in NH this coming year, feel free to call us anytime to discuss the property you are considering and what type of financing it will qualify for at 603-471-9300.