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
$2,095,000
1932
sqft
2
Baths
3
Beds
Discover a once-in-a-lifetime opportunity to own a charming home just blocks from the beach in the heart of Pacific Beach.
San Diego, CA 92109
$2,845,000
2804
sqft
3
Baths
4
Beds
Substantial $150k reduction, priced to fly! Indulge in panoramic vistas stretching from Mission Bay to Downtown San Diego and the Pacific Ocean, embracing every angle of this immaculate Mt.
San Diego, CA 92109
$4,000,000
4481
sqft
4
Baths
6
Beds
Mid-Century Modern Meets 21st Century Modern! Embracing the original 1964 architecture of Palmer & Krisel, owners seamlessly added 3,000 dazzling sq ft of 11+' high ceilings, theater screen-sized ...
San Diego, CA 92109
$3,350,000
1902
sqft
3
Baths
3
Beds
Panoramic sunsets and ocean breezes! Embrace the coastal lifestyle in this DREAMY oceanfront, 4 bedroom, 2.
San Diego, CA 92109
$549,950
653
sqft
1
Baths
1
Beds
Discover coastal living in this coveted top-floor condo, nestled in Pacific Beach's Plaza.
San Diego, CA 92109
$2,750,000
2204
sqft
3
Baths
3
Beds
Move-in ready North Pacific Beach mid-century masterpiece, perfectly situated less than 1.
San Diego, CA 92109
$3,495,000
0
sqft
0
Baths
0
Beds
Incredible updated triplex located in a prime location of Crown Point, San Diego! There are so many options with this nicely improved 3 bed / 2 bath detached house fronting Riviera Drive.
San Diego, CA 92109
$2,595,000
2400
sqft
3
Baths
3
Beds
Savor breathtaking views of Mission Bay, the Pacific Ocean, SeaWorld fireworks, and Downtown SD skyline from this beautifully appointed home perched on the serene and sunny side of Mount Soledad in No...
John Collins

John Collins

DRE# 01948188
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