Union Bank
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Vacation Home Loans

In the market for a vacation or second home? Union Banks serves vacation home owners and perspective buyers of properties located in Vermont and New Hampshire. A Vacation Home Loan is tailored to assist in financing the purchase of a second home intended for vacations, weekend getaways, or instances were access to an additional home with reasonable distance from a primary home may be

Are you ready to invest in a vacation home that will create lasting memories for years to come? Start your journey by applying for your Vacation Home Loan online with our secure and easy-to-use platform. If you prefer personalized guidance, feel free to contact our dedicated lending team for expert advice.

Frequently Asked Questions About Vacation Home Mortgages

  1. What is a Vacation Home Loan, and how does it work?

    A Vacation Home Loan is a mortgage designed specifically for financing the purchase of a second home that you plan to use for vacations, weekend getaways, or a secondary residence with reasonable distance from a primary home. It operates similarly to a primary residence mortgage but may come with different requirements, such as a larger down payment and higher credit score expectations.

  2. What are the eligibility requirements for a Vacation Home Loan?

    Eligibility requirements for a Vacation Home Loan typically include a strong credit score, stable income, sufficient cash reserves, and a larger down payment than for a primary residence mortgage. Typically down payments of 10% to 35% are required depending on loan size, credit score, and property type.  Our mortgage lending team can provide more information on the specific criteria you’ll need to meet.

  3. Can I rent out my vacation home when I'm not using it?

    You can rent out a second home property on a short-term rental basis when not using it. It’s essential to discuss your intentions with our lending team to ensure you select the right loan product for your needs.

  4. Are interest rates for Vacation Home Loans higher than for primary residence mortgages?

    Interest rates for Vacation Home Loans may be slightly higher than for primary residence mortgages due to the perceived higher risk associated with second homes. To get the most current rates, please visit our mortgage rates page.

  5. Do I need a down payment for a Vacation Home Loan?

    Yes, a down payment is required for a Vacation Home Loan. The amount can vary but is generally higher than for a primary residence mortgage. Down payment requirements depend on factors like your credit score, the loan program, and the property’s location. Our lending team can help you determine the specific down payment needed for your situation.

  6. Can I use a Vacation Home Loan to refinance an existing vacation home mortgage?

    Yes, you can use a Vacation Home Loan to refinance an existing vacation home mortgage, potentially lowering your interest rate or adjusting the loan terms. Speak with our mortgage lending team to explore your refinance options.

  7. What type of properties can be financed with a Vacation Home Loan?

    Vacation Home Loans can be used to finance various types of properties, such as single-family homes, townhomes, and condominiums. It’s essential to discuss the specific property you’re interested in with our lending team to ensure it meets the loan program requirements.

  8. Can I use a Vacation Home Loan to purchase a vacation home in a different state?

    Yes, Union Bank serves Vermont and New Hampshire, and you can use a Vacation Home Loan to purchase a vacation home within these regions. If you’re considering buying a vacation home outside of our service area, it’s best to consult with a local lender in that region.

  9. Can I apply for a Vacation Home Loan if I already have a mortgage on my primary residence?

    Yes, you can apply for a Vacation Home Loan even if you have an existing mortgage on your primary residence. However, keep in mind that your debt-to-income ratio and overall financial health will be taken into consideration when determining your eligibility for a second mortgage.

  10. What documentation will I need to provide when applying for a Vacation Home Loan?

    When applying for a Vacation Home Loan, you’ll need to provide similar documentation as you would for a primary residence mortgage. This may include proof of income, tax returns, bank statements, and information on your existing debts. Our mortgage lending team can provide you with a comprehensive list of the required documentation.

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