Michigan Vacation Home Jumbo Loans
Get worry free financing for your dream vacation home in Michigan
Whether you live in Michigan, or travel from out-of-state to your Michigan Vacation home, you have options for financing.
Check out spectacular views and panoramic sunsets. Relax while you gaze at the islands and lighthouses as ships pass in the distance. Michigan hosts some of the best beaches and views in the country. In just a few minutes, you can pop into town from for whatever supplies you need.
Avoid the noise and traffic of everyday life at your Michigan Vacation home. Family attractions, and access to Mackinac Island and the UP via the Mackinac Bridge make for a relaxing time any time of year. Play golf at many resorts, including Little Traverse Bay, True North, and Boyne Highlands.
Buying a Second Home – Michigan Vacation Home Jumbo Loans
There is no reason to live without the niceties of life and the luxury you are used to in your Michigan vacation home. Granite counter tops, hardwood floors, stone fireplaces and floor to ceiling windows are all available in luxury vacation homes in Michigan. You can have a huge gourmet kitchen in your home away from home, too.
A traditional mortgage, on your primary residence or your second home, has a limit of $453,100. If you are looking for a luxury vacation home, you may find this is just not enough. That’s what Michigan Vacation home jumbo loans are designed to do.
This guide will outline some of the requirements for Michigan Vacation home jumbo loans.
- Eligibility Requirements for Qualifying Properties
- Rental Income Opportunities
- Down Payments
- Credit Score Requirements
- DTI (Debt to Income Ratios)
- Necessary Cash Reserves
- Mortgage Terms and Interest Rates
- PMI (Private Mortgage Insurance)
Good to Go Mortgage helps borrowers, especially from Michigan and Illinois, escape to luxury vacation homes with second jumbo home mortgages. Michigan is such a gorgeous state with an incredible variety of vacation home options in spectacular settings.
Some of the most popular Michigan vacation homes are located on the variety of delightful inland lakes and in Lake Michigan or Lake Huron communities. Communities like Traverse City, Saugatuck, Charlevoix, Grand Haven, Ludington, Mackinaw Island are very popular.
Eligibility Requirements for Qualifying Properties
The eligibility requirements for your second home are the same as for your first. The location of the property determines the maximum conforming loan amount. In the higher-priced areas the lower limit for your Michigan vacation home jumbo loans will be higher, as a result.
Ask your Good to Go Mortgage representative what the limit is in the area where you are looking for real estate.
Rental Income Opportunities
Michigan vacation properties are incredibly popular, all year round. You can offer your property for rent when you are not using it. Check out AirBnB or other short term rental options. Some owners rent their properties out for longer terms in the off-season when they are not using the property. Some rent their places out for specific holidays, if they are not using their vacation home during that period. That is often when the rates are the highest.
Down payments on your Michigan vacation home jumbo loans will be mostly based on the financial details in your application. Zero down options are available. Most borrowers prefer a 5% or 10% down payment.
Lenders do have some say in the matter. Good to Go Mortgage solves mystifying mortgage puzzles every day.
Check what your Michigan Vacation Home Jumbo Loans Down Payment would be.
Credit Score Requirements
Second home credit score requirements are also pretty similar to the requirements for your primary residence.
- Credit scores over 620, and closer to 700 or more, are best.
- No bankruptcies or foreclosures in the past couple of years.
Often lenders are flexible about some of the details when it comes to credit score, if the rest of your application is strong.
DTI (Debt to Income Ratios)
The lender will need to be able to verify your income and compare that to your debts.
- In some cases, an employment contract is sufficient.
- Most commonly, a couple of years of tax returns are required.
- Your DTI will also be calculated. Usually a 45% DTI is desirable, but many lenders are flexible if there are student loans, or other properties involved.
Necessary Cash Reserves
After you have made your down payment, the lender will want you to demonstrate you still have some money left over.
- As few as 3 months worth of payments to as many as 12 months may be requested. Sometimes nothing is required.
- About half the total amount in liquid form such as in your checking or savings accounts. The other half in retirement savings.
Mortgage Terms and Interest Rates
The details of the terms of a Michigan Vacation home jumbo loan depend on the strength of your total application. The better your application, including the amount of equity you will have in the property, the better the terms.
- Fixed rate jumbo loans are available with both 15 or 30 year fixed rates. These mortgages lock in your interest rate for the entire 15 or 30 years. You always have the same monthly payment so your costs are predictable over the long term.
- Adjustable rate mortgages (ARM) are available with 5 and 7 year options. An ARM usually offers lower interest rates than the fixed rate mortgages during an introductory time period of 5 to 7 years. The rate will then rise or fall based on what interest rates are doing in the general economy.
PMI (Private Mortgage Insurance)
Generally, for mortgages on properties held with less than 20% equity, you would need to pay PMI. This can be up to 1.5% of the face value of your mortgage, every year.
Michigan vacation home jumbo loans do not have this additional expense. No PMI.