Financing a Second Home in San Diego

Are you considering buying a San Diego property as a second home or investment? Perhaps you are looking for the profit of a vacation rental, a vacation home to keep for yourself, or maybe you want to have another home closer to family. Whatever the reason, a second piece of real estate in San Diego is a great investment. However, funding that puchase will be different than your primary residence, and getting a mortgage on that second property can be a challenge.

Generally, mortgage lender requirement standards for second home loan will be tougher than primary home loans. This is because purchasing a second home will create more demand on your finances and you will have less money to spare because you are already paying a mortgage on your primary home. This is why your second home mortgage can not only be harder to get, but is also likely to have a higher interest rate.

Here are some tips to keep in mind that will help you to get the best mortgage on your second property:

Build up savings. Your mortgage lender will want to be able to see that you have a large amount of savings so that you will have enough to pay for the mortgage even if you were to lose your job.

Pay down credit card debt. Many lenders will be hesitant to approve your second home mortgage if they see that you have a lot of debt on your credit card. They will want to see that you have a low debt to income ratio so that you will be able to pay back the loan.

Use the first mortgage as a good reference. If you have always made your payments on time and you are most of the way through paying off your first house, you could ask someone from your current mortgage company to vouch for you. The lender for your second mortgage will be reassured that you are a reliable person to loan money to.

These are just a few tips to keep in mind in order to make getting a mortgage for your second property as easy as possible. To find out more about investing in San Diego property, or to be connected with a trusted lender, contact me.

Scroll down to see some listings in San Diego's hot rental and vacation real estate markets of Mission Beach and Pacific Beach!
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San Diego, CA 92109
$1,600,000
1607
sqft
2
Baths
3
Beds
North Pacific Beach charmer on 7,800 sqft lot (62.
San Diego, CA 92109
$389,999
653
sqft
1
Baths
1
Beds
Amazing lagoon views from inside the unit and on the patio with one of the best floor plans and locations in the Plaza complex.
San Diego, CA 92109
$949,900
1454
sqft
4
Baths
3
Beds
Beautiful Pacific Beach townhome in Crown Point.
San Diego, CA 92109
$925,000
697
sqft
1
Baths
1
Beds
Own your slice of paradise with this top floor ocean front unit in Pacific Beach.
San Diego, CA 92109
$849,000
1100
sqft
2
Baths
2
Beds
Enjoy this lightly lived in 250K renovation completed in 2021! From the moment you step into this home you will see that it was meticulously designed and curated.
San Diego, CA 92109
$1,800,000
988
sqft
1
Baths
3
Beds
Nestled on a large private lot on one of the best streets in North Pacific Beach this 3 bedroom 1 bathroom beach bungalow is the perfect beach retreat.
San Diego, CA 92109
$2,000,000
2186
sqft
3
Baths
4
Beds
North Pacific Beach home in the La Jolla school district! This two-story 2,186 square foot 4BR, 2.
San Diego, CA 92109
$649,000
944
sqft
2
Baths
2
Beds
Live the Southern California dream every day in this amazing Bayfront condo in sought-after Crown Point Shores just steps from Mission Bay, San Diegos premier outdoor playground! This light & bright ...
John Collins

John Collins

DRE# 01948188
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