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!
​​​​​​​

San Diego, CA 92109
$1,825,000
1430
sqft
3
Baths
3
Beds
Beautifully updated single story story, 3 bedroom 3 full bath North Pacific Beach home.
San Diego, CA 92109
$3,275,000
1616
sqft
2
Baths
3
Beds
A pinnacle of coastal luxury living, this remarkable Bayfront sanctuary redefines elegance and sophistication.
San Diego, CA 92109
$1,249,950
1279
sqft
3
Baths
3
Beds
This is it! This newly remodeled 3 bedroom, 2.
San Diego, CA 92109
$2,295,000
2573
sqft
5
Baths
3
Beds
$100K price drop - Immaculate move-in ready North Pacific Beach home, offering the potential for an Accessory Dwelling Unit (ADU) and conveniently located near Tourmaline Beach, PB schools, and Bird R...
San Diego, CA 92109
$2,280,000
2101
sqft
3
Baths
3
Beds
Beautiful, modern build situated in the highly sought out Crown Point area! Flourish in this modern 2017 built gem situated just a block or two away from Mission Bay.
San Diego, CA 92109
$1,050,000
1140
sqft
2
Baths
2
Beds
Welcome home to 1781 Missouri St, a turn-key, single level, 2 bed, 2 bath condo located in coveted North Pacific Beach.
San Diego, CA 92109
$2,995,000
1411
sqft
3
Baths
3
Beds
Your dream home awaits at this beautiful Mission Beach home, where sophistication meets the serene beauty of the Pacific Ocean.
San Diego, CA 92109
$2,395,000
2750
sqft
3
Baths
5
Beds
Enjoy stunning downtown skyline, bay, and Coronado Bridge views from this 3-car garage, 5-bedroom, 3-bath North Pacific Beach custom home.
John Collins

John Collins

DRE# 01948188
Inquire Now
admin Real estate https://www.royacdn.com/unsafe/smart/Site-293dd465-f306-4334-ba57-871e6c0ec29d/Homepage_AboutJCPhoto.png realtor # # # https://www.royacdn.com/unsafe/smart/Site-293dd465-f306-4334-ba57-871e6c0ec29d/Homepage_AboutJCPhoto.png