4 Items to Consider Before Purchasing a Second Home

Have you always dreamed of owning a vacation home? There may never be a better time than now. Purchasing a second home is not a decision to be taken lightly. But if it is something you've always wanted, the means for making that dream come true are not as difficult as you might think. Here are a few things to consider before purchasing a second home at the Lake of the Ozarks:


Conventional Financing
Purchasing and financing a second home is little different than purchasing a primary home. Some of the low down payment programs are not available, but with conforming loans, as little as 10% down can get you started.

"Cash Out" Financing
We can look at getting your 10% or more down, that is needed to purchase the second home, by using equity from a primary home via refinancing.

Rental Income
If you don't mind sharing your home, the income can be a great. However you should never purchase a vacation home if you're dependent on rentals to make it work. Buying a rental property for income and long-term capital appreciation can have its ups and downs. For example, the housing market can fluctuate depending on location, supply and demand, and the economy.

Tax Benefits and Appreciation
You should always check with your tax pro, but owning a second home can still carry tax advantages that serve to reduce the actual cost of owning. Appreciation is never guaranteed, yet over time, value increases can reward you handsomely for decisions made today. You can even rent your second home out for fewer than 15 days and pay no tax. There's a special rule if you use a dwelling unit as a residence and rent it for fewer than 15 days. In this case, don't report any of the rental income and don't deduct any expenses as rental expenses.

Some potential deductions connected with rental properties include:
  • Ordinary and necessary expenses
  • Improvements
  • Depreciation
Trust MHQ Mortgage Headquarters for Your Second Mortgage Needs!
If you think you are cut out for second-home ownership and are ready to find out more, call us. We'll be happy to help identify the best way we can help you reach your goals today. In today’s competitive market, there are many options available. MHQ Mortgage Headquarters will help you find the right mortgage product for your lifestyle and financial needs.


Mortgage Headquarters of Missouri, Inc
4824 Osage Beach Parkway, Suite 1
Osage Beach, MO 65065

Office: (573) 302-9990
Toll Free: (888)799-1206
Fax: (636)648-9917

NMLS # 1229111

Website - www.MHQMortgage.com 



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Location: Osage Beach, MO, USA

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