A suggestion to help give you the extra edge is to use the leverage tool of combining a seventy-five percent first mortgage with a ten percent down payment and ask the seller to carry back fifteen percent of the purchase price in seller financing or obtain a second mortgage from the lender. This is possible to do as the secondary market that purchases second-home loans will allow you to sidestep private mortgage insurance (PMI) for the simple reason that your first mortgage is less than the eighty percent loan generally requiring PMI. As well you can most likely save some money on interest by choosing a seventy-five percent loan over an eighty percent and negotiating the repayment terms with the seller.
So there you have it. Some valuable information to think about when you are contemplating investing in a second home for leisure. With these ideas in mind you should be well on your way to turning your vacation home dream into an all out reality.