Sonoma County Mortgages

All financing provided by New American Funding

(707) 217-4000 | Apply Now
  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Scott Sheldon
    • Scott Sheldon
      Senior Loan Officer
      NMLS ID# 287389
      Direct: 707 217-4000
      Scott.Sheldon@nafinc.com
      Specializing in Residential Home Loans for Primary Residences, Second Homes, Investment Properties, Single Family Homes, Condos, PUDs, 1-4 Units.

Get Your Latest Rate Quote Now!

What's the maximum loan to value permitted on a second home/ vacation property loan?

March 1, 2013 by Scott Sheldon

Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin
Pin on Pinterest
Pinterest
Share on Google+
Google+
Email this to someone
email
Print this page
Print

90% loan to value with 10% down or 10% equity whether that be a purchase loan or refinance mortgage, is the requirement for a second home or vacation property. The  property will have to located in a resort area and because it’s less than 20% equity, a monthly escrow/impound account will be required for principal and interest, lovely property taxes monthly fire insurance and monthly mortgage insurance. You can assume for monthly mortgage insurance on a transaction like this about 75 basis points.

For example a loan in the amount of $350,000 would represent monthly mortgage insurance of $218.75 per month using a barometer of 75 basis points for payment calculation purposes. You can also try mortgage payment calculator for a more accurate payment comparison.

Related Mortgage Advice from Scott Sheldon

  • Whats the maximum loan to value permited on second home?

    Unless eligible for a Sonoma County Harp 2 Loan, where a loan to value is…

  • How Do I Calculate Mortgage Insurance On A Conventional Loan?

    Calculating monthly mortgage insurance on a conventional loan is best handled directly with the mortgage…

  • Mortgage Insurance: Consumer Tips On PMI & Advoidance

    Mortgage Insurance is like the plague to a monthly mortgage payment. It makes the cost…

  • FHA Mortgage Insurance Premiums Now .85%

    The mortgage insurance premiums on FHA loans has now been reduced .85%. This represent more…

Filed Under: Purchase Mortgage Loans Questions and Answers, Refinance Loans Questions and Answers

SCM on Yelp



New American Funding:
Sonoma County Mortgages

12 Reviews
Recent Review:

James R.

Scott was persistent in getting us to look at refinancing with him and I’m very happy that he was. Our refinance has given us the breathing room… Read More

SCM on Facebook

SonomaCountyMortgages.com

Location & Contact

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
3558 Round Barn Blvd Suite 200
Santa Rosa, CA 95403
1-707-217-4000
Email Us!

Copyright 2018 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day.

State Licensing | Privacy | Terms of Use | Electronic Consent Agreement

Connect With Scott In Your Inbox

Looking for a home? Real estate insider? Get connected with Senior Loan Officer Scott Sheldon. Scott stays updated on the latest in the mortgage industry, so you can stay updated with him!