There is nothing better than enjoying a relaxing, rejuvenating vacation. And for many individuals, owning a vacation home in Jacksonville just makes sense. But, buying a vacation home — or a second home — has many differences than when purchasing a primary residence. Before you begin your house hunt, here are a few things you need to know.
Know Your Financial Situation — and Know it Well
When you purchase a second home, you will notice there are many differences from when you purchased your primary residence. One of these is that you will need to meet much higher financial requirements to qualify for a home loan. Typically, you need a high credit score, usually 700 or higher, and you will need at least 10% to 20% down payment. Additionally, many home loan options, such as an FHA loan, will not be available.
You must also be prepared to pay two mortgages. If your budget does not allow for two mortgages, the taxes and fees associated with this, and homeowner expenses for both homes, you may not be ready for a vacation house in Jacksonville. Also, keep in mind that your interest rate and other fees may be higher for a second home than a primary residence.
Location is Key
When looking for a vacation home in Jacksonville, make sure you know exactly where you want to reside. If you want a beachfront property, then have a handful of neighborhoods on the beach in mind. If you are not picky, make sure you consider things such as the neighborhood, proximity to local amenities and attractions, any Homeowner’s Associations, etc. Talk to a local real estate agent to help you choose the best location for a vacation home.
Know When You Can and Cannot Rent
You may want to rent out your vacation home in Jacksonville and earn some additional income. While this may be a great idea, understand that you may not be able to legally rent out any property. For example, if you choose a home that is managed by a specific Homeowner’s Association, there may be strict rules that do not allow properties to become rentals. Some condos may also have strict rules regarding interior decorating, who lives in the property, etc.
Do a Little Math
While a vacation home may interest you, it may not be worth the cost. When considering a second property, do a little math and ensure you will use the property enough to make it worthwhile and to balance out its costs. The last thing you want is to have a vacation home that sits empty but drains your bank account.
If you are considering a vacation home in the Jacksonville area, visit with real estate agent Krista Fracke today. She can help you find the perfect place for you to relax, de-stress, and enjoy.