Back to Newsroom

Could a Vacation Home Be in Your Future?

porch with rocking chairs

This post was written by Mortgage Marketing Representative Marlene Sheard. 

One of the things my husband loves to do when we are on vacation is pick up a local real estate magazine and dream about buying a vacation home. At first, I thought he was crazy, but the more we looked in to it, we realized it could be possible. Surprisingly, you don’t need a six-figure income to own your own little piece of paradise. It is, however, a big commitment and you should do your homework.

Here are some things to consider:

Location, Location, Location!

When deciding on a vacation home, location is extremely important. Make sure it is relatively easy to travel to, and know the area well. If your goal is to spend as much time as possible at your getaway then the time and costs involved to get there need to fit your budget and your lifestyle.

To rent or not to rent your vacation home?

Renting your vacation home can be a way of diffusing the costs of owning a vacation home and make it more affordable. As a general rule, lenders can count up to 75% of the anticipated rent your vacation home may generate as extra income to supplement your existing income. Just make sure that the peak season for renting your vacation home does not conflict with the peak time you want use your home. Renting your home adds additional management responsibilities and tax liabilities so it would be wise to consult a rental management company and a tax advisor.

Consider maintenance costs.

A vacation home will require maintenance like your primary home. That means much of your vacation time will be spent cleaning, painting, weeding and repairing what might have broken since your last visit. If you’re not very handy or don’t want to spend your vacation working on your home, consider other options like condos or townhomes which may offer exterior maintenance included with the regime fee.

If it sounds like a vacation home could be in your future, check out our lending options or find a mortgage banker to get started.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategy, if any, may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. The tax information provided is not intended to be a substitute for specific individualized tax planning advice. We suggest that you consult with a qualified tax advisor.