Buying a second home in Michigan?
So you are interested in buying a second home in Michigan? This is a dream many across the state have. A second home is also place to get away without sacrificing the comforts of home. Honestly, who doesn’t want to spend time Up North or in the Irish Hills?
Michigan was a hot spot a few years ago for buyers looking to get a vacation home for a great bargain. Those great deals have leveled out to higher prices. However, buying a second home in Michigan is still appealing for many people. Buying a second home isn’t much different from getting your first home.
Mortgage Implications to Buying a Second Home in Michigan
In general, you will need to save a 10% down payment. This can change as available programs change. However, an important note: If you plan to rent out the property at all you will need to finance it as an investment property and put 20% down. Listing the property residency type falsely is considered mortgage fraud and can result in 30 years in prison and a $1,000,000 fine. Not really worth it to save 10%!
It is also important to remember that it is tough to appraise very unique or remote properties. It is also difficult to finance log cabins or homes without utilities. When shopping make sure you ask your realtor if their are good comps for the homes they are showing you.
The dream of buying a second home in Michigan can come true for you. Just make sure to save for your down payment and contact us when you are ready. We are here to help!