Six Lakes Realty

Financing Your Northwestern Wisconsin Vacation Home

Obtaining a mortgage for your Northwestern Wisconsin vacation home purchase is a bit different than financing a primary residence. For example, the down payment requirements are higher and specific underwriting rules apply. While the exact criteria will vary by lender, here are common guidelines to help you!

1. To be defined as a “vacation home,” your second home must be a reasonable distance away from your primary residence – namely, not too close to home! If the vacation home is within a 90-minute drive or less, it may still qualify, so long as it offers recreational amenities or access to them.

2. For the purpose of your loan application, a second residence cannot be both a rental property and a vacation home. Most lenders have separate requirements for each situation. Limited rental use may be permitted, but in the lender’s eyes, it shouldn’t exceed your own personal use of the property.

3. Your second home must be occupied for at least a portion of the year. Seasonal use qualifies, as well as weekend occupancy.

4. Lenders usually require that a vacation home be a single-family dwelling. Single-family dwellings include detached residential homes and condominiums.

5. Lenders prefer to see down payments of 20% on a vacation property. Exceptions may be possible depending on the property and your personal financial situation. Sometimes vacation home buyers tap the equity in their current home to produce the down payment for their second home.

We know excellent lenders in the Chetek area who are experienced in vacation home financing! If you are ready to seek a mortgage for your Northwestern Wisconsin vacation home purchase, contact us for a personal referral!

Six Lakes Realty has over 40 years of experience in buying and selling Northwestern Wisconsin real estate! We are a locally-owned family business, providing hometown, personalized service throughout the Barron County area. We look forward to working with you!

John Flor
Managing Broker
Six Lakes Realty
Office: (715) 924-4806

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