Second Home in Colorado

Buying a Colorado second home or an investment property can be a great investment but it can be harder and more expensive to obtain a second home loan. Insurance will also be more expensive and could be more difficult to find if no one is living in the property, as is the case with most second homes. The Internal Revenue Service will look at your second home differently too if you rent it for 15 days or more. You can read the tax rules for second homes at the IRS Web site: http://www.irs.gov/publications/p527/index.html.

Investment or vacation?
If you want to purchase a second home real estate property as an investment to rent to vacationers, figure out how much income you can expect as well all expenses. Expect to pay for:

Maintenance costs
These can be a high cost for rental real estate properties because of the many different people you have coming through the house. If the house is in particular climates, you can expect to pay costs to do repairs if damage is done.

Marketing costs
Marketing the vacation home can be expensive if you go through a real estate company. The company can take between 20 and 50% of the income and perhaps other additional advertising fees. Make sure if you go through a company you know how well the investment properties do that they market and what you can expect from it. You can market your property online at different vacationer websites as an option.

Disaster insurance
Flood insurance prices for second home real estate or investment properties are different depending on the location and age. You should expect to spend thousands of dollars for a home that is by a beach or riverfront. Because of the recent big hurricanes in the United States, it has made obtaining flood insurance very difficult. Flood insurance policies don't cover damage due to wind and rain.

Hurricane and wind insurance on an investment property is a separate policy that may need to be purchased from a state insurance pool. In certain hurricane prone areas, this is also hard to obtain.

Fixed expenses

As any other home, you should expect to pay the bills for the mortgage, for cable TV, heating and cooling, trash, water, and phone for your Colorado second home. To learn more about what you are getting into with buying a second home real estate, look at advertisements for similar properties. A local real estate agency can give you a good estimate of how much you should charge. If the investment property had already been a rental, you can ask the seller to give you the Rents and Royalties schedule from the last years' tax returns which will count for about 75% of the rental income, not the full 100% .

Second home owners or investment property owners find that there are many second home expenses but it may be a good investment and worth while to look into second home real estate. Check out ColoradoHomeLoan.org for further helpful information.

Fill Out An Application

Take the first step and fill out the online application. Once contacted, we will let you know within a day if you are approved for your loan amount and will close within 10 days.

30 Year Home Saver

Our 30-Year Home Saver Loan provides security and saves you money. In fact, few mortgage companies are AUTHORIZED by the Federal Housing Authority to sell these products.