We are hearing from the local mortgage reps who actively work in the vacation home market.  The guidelines and programs have certainly changed since the fallout from high-risk loans.  But, they are still lending money, and open for business.

Back in the “normal” days, loans were typically 80% of the purchase price, and buyers had to show proof of income (imagine!).  The 100% loans based on stated income (often called low-doc or no-doc loans) were a risky business move and are coming back to haunt the lenders.

If you have a solid credit score, a 10% to 20% down payment, and proof of income (tax return, W-2, profit/loss statement, etc.), the interest rates and loan programs are still favorable.

Most buyers in our market opt for an interest only product.  The 7/1 or 10/1 ARM’s make sense for many.  There is always the option to pay down the principal if a buyer decides to stay in the property for a longer period of time.  But most have plans to trade up, re-build, or re-finance by the time the 10 year locked in rate time period expires.

I have excellent contacts in the mortgage business- people I have known for years, and trust.  I will be happy to pass along those names and numbers if you have questions about a current or future loan.  ann@anndelaney.com