There are many factors to think about when purchasing second homes. A few important ones include location, finances, and renting. The considerations for purchasing second homes in MA below may be useful before you begin the process.
Factors for MA Second Homes
Property Appeal
With second homes, the appeal of the home will not only be important to you as the buyer but will also be closely evaluated by renters and future buyers. A property must exhibit something special to be desirable. Location, scenery, interior features, and area amenities are all influencing factors.
Financing for Second Homes
Buyers for second homes historically make significant down payments. Depending on your finances, this may or may not be required. Lenders use similar guidelines for any type of mortgage. Your debt to income ratios must remain within specific limits. They will evaluate all of your income and debt, including your existing home mortgages. How much you qualify for will be dependent on those ratios. If you are looking to purchase a home above that price, a larger down payment may be required. Before seeing properties, speak to a mortgage professional about your finances. This will avoid the disappointment of falling in love with a home that you cannot afford.
Tax Benefits & Interest Rates
In the past, loans for second homes always required large down payments and unfavorable interest rates because lenders considered them high risk. This is no longer true. Buyers with satisfactory credit and finances can sometimes receive rates and terms close to that of regular home mortgages, making buying MA second homes easier and more popular. Additionally, there may be tax benefits to owning second homes. Speak to a financial advisor for information on whether you can take advantage of those tax breaks. Renting second homes can also have tax implications based on the number of days it is rented during a calendar year. If you intend to change a home to a primary residence, this again can have tax implications. Before doing anything with second homes, it is important to understand the tax laws and ways that you can save.
Additional Considerations For Purchasing Second Homes In MA
The above considerations for purchasing second homes in MA detail only a few of the many elements of buying second homes. A real estate broker experienced in assisting buyers of second homes can provide tremendous value and make it a less complicated process. For assistance with buying MA second homes, contact Christopher Graves at Emery Federal Credit Union by calling 781-759-1200 x22 or emailing christopher.d.graves@gmail.com.
