Is This the Summer to Buy That Dream Beach House?
Summer is here and for many that means the annual dream of owning a beach house resurfaces – like a buoyant boogie board on a breaking wave.
Which begs the question: What would it take to make that summer house dream a reality?
First off, keep in mind that interest rates are still low and that lending rules have relaxed some, says Eric Parsons, mortgage banker and branch manager at Tidewater Mortgage Services in Rehoboth Beach, Delaware.
“People assume they have to put 20 percent down on a second home but that’s not necessarily true,” Parsons says. “You can often put less down – sometimes 10 percent – and the interest rate is no different than a primary home.”
Qualifying for a Mortgage
That said, to qualify you for a loan, lenders will look at things like cash flow. They want to see that you can pay for incidentals with cash — in other words, that you don’t have to liquidate funds out of 401Ks or stock portfolios, notes Parsons.