Now Is A Great Time to Consider That Seeley Lake Vacation Home

It’s that time of year when people are starting to think about their spring break vacations, and many may be romanticizing about owning a  second home in Seeley Lake.  The recent economic downturn has likely discouraged some from buying a vacation home, however that tide is turning.  Today, conditions in the housing market have improved for prospective buyers (home prices and interest rates are lower than they have been in some time), and opportunities abound for those in the market for a second home.

There is one caveat: today’s borrowers must be patient, eminently qualified, and strategic about their housing choices.  Lenders are still holding to tightened lending practices, which means that those who want to buy will need to meet the banks’ new higher standards.  However, with mortgage payments so low for vacation homes right now, if home buyers are able to qualify and make savvy decisions, they will be rewarded with very affordable second mortgage payments.

With regard to lending requirements for second homes, Fannie Mae and Freddie Mac, the government-owned companies that essentially dictate the lending criteria for mortgages, have tightened their requirements for standard loans. Borrowers must now have credit scores of at least 660 and down payments of 20% to qualify; a year ago, the industry standard was a 620 or better credit score and at least 10% down (to avoid private mortgage insurance, or PMI).

Because banks consider loans on second homes riskier than those on primary homes, many lenders had opted not to take a chance on them in past months.  The requirements were changing so much that lenders were fearful that Fannie and Freddie would force them to buy back the loans if they weren’t underwritten precisely matching the specifications.  Since October of 2009, however, lenders have been more willing to process loans on vacation homes, and more deals are going through.  As a result, many new vacation home owners are finding some great deals in our current buyers’ market.

Are you considering a second home in the gorgeous Seeley Swan Valley?  Have you dreamed of owning a vacation home in Seeley Lake, but were unsure whether it was a good time to buy?  Give me, Kim Koppen, a call and let me help you determine the best options for your lifestyle and budget.  I’m a local real estate professional with expertise in second and vacation homes here in Seeley Lake, and I’d love to help you achieve your dreams!