This Loan Is No Vacation
Lenders say they are concerned about providing loans on niche homes where values are difficult to determine and future buyers could be hard to find. This can include seasonal homes, such as ski chalets that are only used a couple months out of the year, and vacation homes that require more than $3 million in financing. Vacation homes are part of a broader mortgage category referred to as second homes, which can also include a pied-a-terre near a borrower's office. Even when lenders are comfortable with a property, they can spend weeks assessing a borrower's true intentions for it. At issue is whether jumbo applicants plan to use the home strictly for their own purposes, like vacationing, or if they are thinking about renting it when they are not there. Borrowers who receive this mortgage can enjoy several perks. Some lenders offer the same terms on vacation-home loans, including the same interest rate and down payment requirement, as they do on primary-home mortgages. Borrowers can also tap into tax benefits.<br>For the original version including any supplementary images or video, visit http://online.wsj.com/news/articles/SB10001424052702304243904579200061524828486
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