More than ever, people are looking for a weekend getaway, whether it’s a second home or a small cottage on a lake.
Since the beginning of Covid-19, the market has particularly increased in the Traverse City area, in northern Michigan, and in the Upper Peninsula. The increase in second home mortgages is due to a few main factors. First, due to the pandemic, many companies have begun allowing people to work from home.
People from all over the country are moving to Michigan, and it’s not unusual to see people moving from California, Texas, South Carolina and Maryland. Before the pandemic, people had to live where they worked, and now work-from-home employees are buying and building where they actually want to be.
Thanks to the natural beauty around us, many customers are also searching for hunting cabins in northern Michigan and the Upper Peninsula. Not only are they looking for a recreational outlet, but perspective has changed for some and they’re also looking to get away from the more urban settings.
Beyond these lifestyle reasons, second home buyers are also interested in retirement spots, diversifying assets, and potentially generating rental income as a way to cover the expenses of owning two homes.
When applying for a second home mortgage, there are some important factors to consider as loan options often vary for second homes. GreenStone’s second home mortgage requirements include:
- Ability to customize loan terms to your needs, up to 30 years
- A minimum purchase of 10 acres with the home; or already owning 10 acres elsewhere
- 20% down payment of the purchase price
- Full payment of closing costs, not financed
- No prepayment penalties, nor balloon payments
- Property renovation financing options
As people search for solitary, new, and rural places they want to live, interest in securing financing for second homes will likely increase. To get started on your getaway today, contact your local GreenStone branch office.
Second home mortgage FAQ:
Can a second home be considered a primary residence?
A home cannot be listed simultaneously as your primary home and second home. In addition, lending options do vary based on the type of property.
Is an investment property the same as a second home?
No. A second home is one in which you live in it for a certain time period each year. If you don’t live in it at all, it’s considered an investment property. Investment property financing includes different options from other home financing.
What is a benefit of working with GreenStone for a second home mortgage?
GreenStone has financing options to meet your needs including fixed and competitive rates, consistently provides excellent customer service, and has a long history of partnering with customers in Michigan and northeast Wisconsin to achieve their dreams.
In addition, since GreenStone is a cooperative owned by the members it serves, we give back a portion of our annual earnings each year to our member in the form of patronage. This patronage program makes the cooperative unique in the ﬁnancial services industry, and virtually a return on the interest you pay annually – sometimes more than 1% back in cash. Therefore, the more business you do, the larger your potential return.
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