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Seniors looking for a second home in warmer climes may be stymied by lenders 2010-01-12 Would-be snowbirds may have a hard time securing a loan on a vacation property, The New York Times reported recently. Lenders are skittish about writing new home loans and lending standards are rising, meaning that fewer people will qualify for a mortgage. John Walsh, the president of a Connecticut-based mortgage lending company, suggested that loans for vacation properties are in particularly short supply. Second-home mortgage applicants "have to be strong borrowers," he said to the Times. And even the most qualified applicant may not be able to wangle a condominium loan, he noted: Many lenders are unwilling to make loans for condo purchases if the condo will be used as a second home. The newspaper cited National Association of Realtors data saying that vacation-home purchases have been declining from their 2005 peak and made up 30 percent of the mortgage mix at the end of 2008. Borrowers who are eligible to take out a home loan have a number of factors working in their favor, though. Home prices are low and should remain so for the next few months; the tax credit for homebuyers won't be eliminated until April. Mortgage rates are near 5 percent, too.  |
