Types of Mortgages
Conventional Loans
Most common for second homes and investment properties:
- Typically require 10-25% down payment
- Higher credit score requirements for second homes
- Competitive interest rates
Jumbo Loans
For properties exceeding conforming loan limits:
- Higher down payment requirements
- Stricter qualification standards
- Often needed for mountain luxury properties
FHA Loans
Available for primary residences only:
- Lower down payment options
- More flexible credit requirements
- Must occupy as primary home
VA Loans
For eligible veterans and service members:
- No down payment required
- Competitive rates
- Primary residence requirement
Second Home Requirements
Lenders treat second homes differently:
- Higher down payments (10-25%)
- Higher credit scores (typically 680+)
- Lower debt-to-income ratios
- Proof of ability to pay both mortgages
Investment Property Financing
- Typically 20-30% down payment
- Higher interest rates
- Rental income may be considered
- Cash reserves required
Getting Pre-Approved
Steps to mortgage pre-approval:
- Gather financial documents
- Check your credit report
- Calculate your budget
- Compare lender offers
- Submit application