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Financing a Vacation Home - April 2006
One of the easiest ways to pay for a vacation home is to tap into the equity in your primary home. Vacation home sales in some countries such as Mexico are cash only, though there are some exceptions. There several ways to go about getting this kind of financing. There are variations in these kinds of loans, so it pays to look into them closely and find the one that works best for you.
- Stated Income Loan: Good for the self-employed people or those with a lot of commission or bonus income or who have multiple sources of income.
There are variations in all of these loans, but in most cases they will work because we consider the cash-out from the refinance as the "required reserves" that most of these programs require. Also, you can get most of these loans without having to sign any of the IRS Forms (4506, 4506t and 8821) that many lenders make you sign at closing.
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