Lake property purchased as a second home can require specific lending requirements from institutions specializing in vacation home financing. With rare exception, sellers do not offer financing and thereby buyers must seek conventional mortgages as FHA and VA loans do not qualify for lake property. We cannot stress enough, the importance of using in-state lending institutions in order to obtain a quick and smooth acquisition. Issues concerning appraising, flood insurance, title insurance, closing documents, can and do become complicated when crossing state lines.

Typically, conventional mortgages are given for 80% of the property market value, though 90% is also available with additional lending fees and requirements. In either case both fixed rate and adjustable rate mortgages are available in a wide menu of terms, points, and duration. Any mortgage amount above 80% will require PMI (private mortgage insurance) until the loan is paid down to 80% or less of market value.

If a cottage does not contain a central heat source (furnace, baseboard, etc.), then only a few lenders will make loans. However, if this is your case, allow Jerdon to find a lender that will.

Vacant site mortgages are also available upon request. Usually similar terms are offered which can be converted to a construction loan when you're ready to build.