Thursday, June 29th, 2017

Mortgage Available For A Second Home in Big Canoe? Absolutely!

Lots of people come to the North Georgia Mountains to buy a second home or a weekend retreat. With the current tightened lending restrictions, folks are asking whether mortgages are still available for second home purchases. To answer this question, I invited Steve Hale of Georgia Platinum Mortgage to write a guest post on second home purchases. Here’s Steve:

“Most people believe that real estate is a great long-term investment, and a second home is a wonderful way to get into the action. A second home enables you and your family to enjoy vacations in a resort-type mountain community like Big Canoe, or at a beach resort.

Lenders and real estate law say that there are two types of second homes. An investment property second home will generate income. A personal use second home will be used for your friends’ and family’s pleasure only.  If your income is adequate and your credit score is the 700s or above, you can probably qualify for a full-doc loan on a second home just as you would have before the mortgage meltdown. For a personal use second home, lenders will typically follow the same guidelines as primary residence purchases. For an investment second home, lenders will follow investment property guidelines.

Here are some things to consider for investment second homes: Location, location, location! It’s true,  location is everything in real estate, and especially for investment second homes. The location of your second home is probably the single most important selling point to keep the property rented and to generate income. And a good location allows you to charge at the high end of local rental rates. Keep in mind your opinion of the location as a place to live doesn’t come into play if this property is strictly for income generation. You’re just looking to become a landlord, not live in the second home, so the location should appeal to your targeted renters.

The investment second home is a great deduction when tax season comes around. Repairs, upgrades and expenses will reduce your bottom line. The personal use second home will provide a lifetime of memories for your family and friends. There will be tax implications for both scenarios. Ask your CPA for their professional opinion. Now, go find a great second home and enjoy!”

Steve is always helpful and happy to answer questions about any kind of real estate purchase. He can be reached at:

770-274-2853

stevenhale@georgiaplatinummortgage.com

Come on up to the North Georgia Mountains and see us!

Peter and Margo Vallone

Comments

One Response to “Mortgage Available For A Second Home in Big Canoe? Absolutely!”
  1. Karin E says:

    Great post! Prices on second homes are very reasonable. It makes sense to buy now if you are able. Plus there are plenty of people looking to lease either short or long-term.

    Big Canoe is still close enough to Atlanta to commute. For a second home, Big Canoe is perfect because your “vacation home” is only an hour away which elimintaes the long drive and endless “Are we there yet?” comments from the back seat!

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