Vacation Home or Rental Property - Oro Valley Homes for Sale
Oro Valley Homes for Sale, Oro Valley Real Estate in Oro Valley Arizona AZ. Search Oro Valley Homes and Real Estate, Oro Valley Realtor Ian Taylor


A vacation home is typically defined as a secondary residence at least 50 miles away from your primary residence. If you do plan to rent out your vacation home, it’ll be classified as a rental property, which has different rules than a vacation home or primary residence, as we’ll discuss below.
Compared to loans for primary residences, loans for vacation homes typically have slightly higher interest rates, and lenders may require a higher credit score as well as a larger down payment. For example, a primary residence allows for down payments as low as 3% for conventional loans. But for a vacation home, you may need 10 – 20%. With these types of loans, it’s also important to remember that renting your vacation getaway while you’re not using it might violate the terms of your loan.
With a rental property, you’ll likely pay a higher interest rate than those for primary residences and vacation homes. And need to put at least 20% down, since it can be a challenge to get mortgage insurance on rental properties. But the good news is that your lender will consider a portion of the anticipated rent as income, which could help you qualify for a loan that you otherwise wouldn’t without that added income. And of course you’ll be able to offset your costs with the regular rental income.