Financing a second home may be easier than you think

Dreaming of buying a second home? Despite market shifts, it’s still within reach. Whether you’re seeking a mountain escape, a beach retreat or a cozy getaway, understanding the realities of purchasing a vacation property is key. Buying a second home can feel overwhelming — between higher costs, financing nuances, ongoing upkeep and limited time to enjoy the home. That’s why Let’s start with the seven steps of how to buy a second home: 1. Determining your second home budget involves assessing your current and future finances. Consider income, expenses and additional costs like taxes and maintenance, especially if you will be assuming a second mortgage. A It’s also important to think long-term. Will this home primarily serve as a personal getaway, a future retirement retreat, or a potential investment? Aligning your second home goals with your broader financial plan helps ensure the purchase supports your lifestyle, not strains it. Evaluate financing options and consult a financial advisor for insights into tax implications and investment alignment. This thorough analysis ensures that your second home purchase aligns with your financial goals. Second home expenses In addition to the purchase price, be sure to factor in these expenses when budgeting for a second home: Although second homes come with added expenses, they can also offer tax advantages that help offset costs. As you’re crunching the numbers, remember your second home can also be a source of rental income and tax breaks. Depending on how your second home is classified and used, you may be able to: These are great ways to make owning a second home more feasible. However, 2. Consider your financing options Lenders often see second homes as being at higher risk for loan repayment. For this reason, Here are some things to consider when financing a second home: It’s important to note that Buying a second home doesn’t have to be a solo endeavor. 3. Compare lenders When comparing second home lenders, it's essential to conduct a thorough evaluation to secure the best financing option tailored to your specific needs. Consider the following factors and use them as a basis for comparison: By comparing these factors among different lenders, you can make an informed decision that aligns with your financial goals and secures the most favorable mortgage terms. 4. Get pre-approved Getting pre-approved for a second home gives you a clear picture of what you can afford and strengthens your position when making an offer. Lenders will review your income, assets and debts to determine an approved loan amount. Consult multiple lenders to compare interest rates and terms. Keep in mind that because lenders may see 5. Find a location and a local agent Once you decide how to use your second home, you can hone in on the best second home locations. Ask yourself: Confirming your reason for owning a second home can help you decide on the perfect destination for your new vacation spot. Choosing the right agent Finding a knowledgeable agent in your target market can significantly decrease your workload in your second home search. You can use their local knowledge to help you with logistics and make an informed decision. Research local agents online, cross-reference reviews and ask for recommendations from your friends and family when possible. 6. Make an offer Buying a second home will be a familiar process if you’re already a homeowner: You make an offer, negotiate, come to an agreement and prepare for closing. Prior to closing, you will: Once your offer is accepted, it’s time to begin the closing process for your new second home. 7. Begin closing After the seller accepts your offer, the second home closing process begins. This process involves several crucial steps: Although closing on your second home may appear overwhelming, a smooth closing is key to turning your house purchase into a dreamy second home getaway.  How do you know if you’re ready for a second home? When considering purchasing a second home, you'll want to evaluate your finances, lifestyle, and market conditions to determine whether it's the right time to purchase — but those factors are just the tip of the iceberg. Here are some of our team's top considerations for those considering a second place of residence. Down payments, interest rates and debt Assess your current financial situation to see if you can comfortably afford a If additional debt strains your financial resources, it may not be quite the Location and lifestyle fit Your vacation home’s location is everything. It affects your budget, lifestyle and resale appeal. Some areas have a higher cost of living or stricter zoning, while others may offer better access to amenities, outdoor recreation or year-round appeal. The ideal second home also aligns seamlessly with your lifestyle. Prioritize locations that support your hobbies and desired activities, guaranteeing a frequent and enjoyable retreat. If you like to ski, for example, a Investment or personal escape? When deciding on the main goal for your second home, it's crucial to determine if you're primarily interested in generating rental income, building long-term investment appreciation, or creating a personal retreat. Each of these objectives will significantly affect your approach to buying, managing, financing, and handling taxes for the property. Time investment Owning a second home comes with significant responsibilities. Are you prepared to manage the upkeep of two properties? This includes regular maintenance, potential repairs and the time and financial commitment of traveling between both homes. If not, are you willing and able to hire a property management company or other professionals to handle these tasks?  Remember that delegating these responsibilities will add to the overall cost of owning a second home. Market timing Finally, when looking to take a big step forward in your second home journey, you'll want to look at the home market conditions. Many properties are available in a buyer's market, and buyers have more negotiating power. In a seller's market, high demand and low inventory give sellers the upper hand.  Understanding the current market conditions will help you set realistic expectations, develop an effective negotiation strategy and help you determine if now is the right time to buy.  How do I buy a second home with Pacaso? Now that you know how to buy a second home, it’s time to explore your options. If turnkey luxury and simplicity appeal to you, co-ownership with Pacaso offers a modern alternative to traditional second home ownership. If you’re unfamiliar with Here are 11 steps to follow if you’re wondering how to buy a second home with Pacaso.  1. Find a second home you love From there, you can explore each destination and the homes available within it, picturing what life could look like in every location. Each destination page brings the area to life, showcasing Pacaso homes through rich photography, detailed descriptions, and a true sense of how it feels to live there. Every Pacaso home is hand-selected and 2. Talk to us We’re excited to share all the details about our homes. If you’re not sure which one is best for your needs, we’ll go through each home’s unique attributes and location to help you decide.  You can easily schedule a time to talk with one of our Crew members from any listing details page, or if you have general questions about co-ownership, you’re welcome to get in touch via our 3. Take a tour  Touring is an important step in buying a vacation home. We’ll give you all the information we have about the home, but seeing is believing. While you’re on the call with our Crew member, they can arrange a time for you to tour the home. Buyers can schedule a virtual tour, an in-person tour, or 4. Say yes!       You talked, you toured, you fell in love, and you’ve decided on owning a vacation home! We’ll walk you through the purchase process and paperwork, and our Crew will make sure you understand all the terminology related to co-ownership, such as: We want you to feel confident in the process, so ask as many questions as you’d like. Once you’re ready to proceed, you’ll reserve your share with a 10% deposit. 5. Secure second home financing  If you’re interested in The approval process is straightforward and fast. Once all documents are provided — typically your most recent pay stub, bank statement and tax return — approval takes just a few days. You also have the option to pay all cash or take out a HELOC or personal line of credit through a lender of your choice. 6. Close on your new second home Your journey begins by reserving your share and signing the residential purchase agreement. You’ll submit a deposit equal to 10% of the share price, officially kicking off the closing process.  From there, you’ll receive two sets of documents to review and sign. These include familiar items, such as the inspection report and seller disclosures, as well as Pacaso-specific agreements that outline how the home is managed and owned through our property LLC structure. If you choose to finance a portion of your purchase, our team will work with you to collect the required financial information and keep things moving smoothly. As closing approaches, we’ll schedule a check-in call to review your final closing statement, confirm wire instructions for the remaining funds, and verify that everything is in place, including your first stay date. Once the transaction is complete, congratulations are in order: you’re officially a Pacaso owner. After closing, you’ll transition into onboarding, where you’ll meet your Home Manager, download the Pacaso app, and start booking stays. From there, all that’s left to do is settle in and enjoy your new second home. 7. Get ready for vacation home bliss Congratulations on owning a vacation home with Pacaso! Our commitment to owners doesn’t end at closing. We assign a 8. Book your stays You can begin 9. Experience the ease of fully managed ownership One of the best things about buying a vacation home? It’s all yours! One of the worst things? It’s all your responsibility. The hassles of vacation home ownership can take a lot of joy out of the experience.  Pacaso’s fully managed co-ownership model gives you the benefits of vacation home ownership without all the headaches. We take care of maintenance, repairs and cleaning; manage payments for utilities, insurance and taxes; oversee 10. Flex your ownership muscles Pacaso’s management services are designed to make your ownership experience easier — but that doesn’t mean you don’t have a voice. In fact, you and your property’s co-owners have 100% ownership of the property once all shares are sold, which means your co-ownership group has decision-making authority.   Here’s how this works in practice: Owners can bring major issues about their property to a vote of the co-ownership group, and every share owned holds one vote. A major issue might be a costly property upgrade, like the installation of a hot tub.  To call for a vote, you would get in touch with your home management team. Routine maintenance and necessary repairs (such as replacing a broken dishwasher) are handled by Pacaso and do not require a vote. 11. Feel confident if it’s time to move on We think you’ll love your Pacaso for years to come, but life evolves, and your ownership can evolve with it. If your needs change, you’re free to Why is buying a second home with Pacaso the smart choice? At Pacaso, our goal is to make second-home ownership simpler, more enjoyable, and more attainable — without ever compromising on quality, control, or confidence.  From luxury homes in premier destinations to Whether you’re just beginning to explore or ready to take the next step,

With a blend of comfort and privacy, By understanding the different types of vacation homes and 1. Condominiums  Condominiums are multi-family units within a larger building. Condos are a convenient, relatively low-maintenance option and may feature 2. Villas Villas are typically larger, freestanding homes offering ample space and privacy in a tranquil or tropical setting. They often boast world-class features like private pools, stunning views and expansive gardens. A villa’s Pacaso spotlight: This Pacaso villa captures the essence of laid-back luxury in 3. Cottages Cottages offer a charming escape for those seeking a simpler, more intimate vacation experience. These quaint dwellings often feature fireplaces and rustic decor. This type of accommodation is ideal for couples or small families looking to get away from the hustle and bustle of city life and spend quality time together. 4. Cabins A cabin serves as the perfect 5. Chalets Chalets are quintessential modern mountain homes inspired by Swiss architecture. Built for snowy climates, they feature recognizable steeply pitched roofs with wide, overhanging eaves that shed snow effectively. These cozy dwellings are ideal for winter vacations and enjoying stunning mountain vistas — making them perfect for hosting a ski trip. 6. Single-family homes Single-family vacation homes are the best Pacaso spotlight: This Pacaso home offers the privacy and ease families love, with space to spread out, room for gear, and the comfort of a true home base in the mountains. With ample indoor living areas and outdoor space to unwind after a day exploring 7. Beach houses One of the most popular types of vacation homes, beach houses offer the quintessential coastal retreat, putting you steps away from the sand and surf. Imagine waking up to the sound of crashing waves, spending your days sunbathing and enjoying breathtaking sunrises or sunsets. A beach house is perfect for families with children or water enthusiasts who want to indulge in water sports like surfing, kayaking or paddle boarding. Pacaso spotlight: This quintessential California beach house offers relaxed coastal living just steps from the shoreline. Glass doors open to an oceanfront patio, making it easy to move between indoor comfort and time outside. Days revolve around beach walks, water sports, and soaking up the sea air. Best of all, this home is fully managed, so you can enjoy the beach lifestyle without the added hassle. 8. Lake houses A lake house can be a Pacaso spotlight: Calm and peaceful, this Pacaso lakefront home is ideal for those seeking the serenity of both the mountains and the water. Spend slow mornings sipping coffee on the dock, afternoons paddling, and evenings around a fire with friends or family. Whether you’re drawn to quiet nature views or time on the water, this home brings lake living to life. 9. Mansions Pacaso spotlight: This Pacaso estate on Malibu’s Pacific Coast Highway defines spacious, high-end living. With expansive living areas, multiple bedrooms and bathrooms, and room for everyone to spread out, it’s designed for big family get-togethers, celebrations, or relaxed days on the beach. Designer furnished with luxurious features throughout, it offers a vacation home experience that truly feels special. 10. Townhomes Townhomes blend condo-style living with the feel of a single-family home. These multi-story residences share one or two walls with neighboring units but have their own private entrances and, often, small yards or patios. Townhomes are great for vacationers seeking an urban escape with easy access to restaurants, shops and attractions. They can also be a good option for Pacaso spotlight: This luxury townhome in 11. Apartments An apartment is a convenient and affordable option for shorter vacations in cities or neighboring suburbs. You will often find these multi-family units within large complexes. They provide basic living amenities and a place to rest your head after a day of exploring. Apartments come in many styles, containing both luxury and budget-friendly vacation accommodations. Pacaso spotlight: This luxury apartment in Paris’s 7th District is an excellent base for city exploration in one of the world’s most iconic cities. With all the essentials for comfortable living and a central location near cafés, museums, and parks, it’s ideal for shorter types of vacations like weekend getaways. A smart choice for travelers who want convenience and culture with a touch of elegance and ease. 12. Studios Studios are compact living spaces with affordability as its biggest perk. They are often in prime urban locations that put you steps away from the action. Plus, with minimal cleaning required in a single space, travelers can maximize their time exploring a destination. 13. Timeshares Owning a 14. Short-term rentals 15. Aparthotels Aparthotels, or 16. Lodges Lodges are full of rustic charm and a sense of remoteness, perfect for those seeking an escape into nature. Many lodges provide staff-guided adventures and excursions, allowing you to fully immerse yourself in the natural environment. The communal atmosphere of lodges fosters social interaction with fellow travelers, creating a unique opportunity to share stories and experiences while vacationing. 17. Bungalows Bungalows are single-story dwellings known for their compact size and charm. They offer a cozy, affordable option for couples or small families who want to share a small space. The simple layout with minimal living space encourages quality time together. You will often find bungalows in beach towns or scenic locations, providing a relaxing atmosphere close to nature. 18. RVs RVs, or recreational vehicles, are the poster child of travel flexibility while vacationing and are an excellent option for those not wanting the full commitment of buying a vacation home. They come in various sizes and offer a range of amenities, from basic campervans to luxurious motorhomes. This allows you to customize your experience and choose a vehicle that satisfies your vacation needs. RV parks can provide convenient overnight locations with amenities like hookups for electricity and water, making it a practical alternative to buying a vacation home. 19. Houseboats Houseboats are a popular alternative to buying a vacation home. Cruise rivers and lakes in some of the country's most 20. Unusual homes Unusual homes represent a chance to stay in one-of-a-kind or quirky accommodations, from tree houses nestled in a forest to converted windmills and traditional yurts. These unique properties provide an unforgettable experience and a chance to connect with nature in an innovative or time-honored way. This vacation home option is perfect for avid travelers who want to try something new. What are some tips to help me decide which type of vacation home is right for me? Here are some key factors to help you narrow down your search and find your favorite types of vacation homes. Be clear on its intended use Consider your budget Calculate travel logistics  Decide how remote you want to be Determine if you’ll rent it out What makes Pacaso co-ownership the best vacation home option? With so many types of vacation homes available, there are sure to be a few options that best suit your and your loved ones' needs. But beyond the excitement of finding the perfect place, owning a vacation home on your own can come with added responsibilities like maintenance to ongoing That's why

This guide breaks down the different What qualifies as a second home for tax purposes? The IRS classifies a second home based on personal use versus rental use Lenders may also have their own criteria, including: Common characteristics of second homes: How are second homes taxed based on IRS classifications? The second-home tax deductions you can claim depend largely on how the IRS classifies your property. Generally, second homes fall into three categories: Because classification depends on usage and can changes year to year, consult a licensed tax professional to determine your home’s rental status and required forms. What are examples of second home tax benefits? Owning a second home offers more than luxury and relaxation — it also opens doors to potential second home tax benefits. Here are the key second-home tax deductions and credits you may qualify for: Mortgage interest deduction Mortgage interest is the cost of borrowing money to purchase a home. The Property tax deduction Property taxes fund local services like schools, public safety, roads, and infrastructure. Home equity loan interest deduction You can Capital gains deductions A capital gain is the profit you make from selling a capital asset, such as a second home. The amount of your gain is the difference between your adjusted basis (what you paid for the property, plus the cost of any major improvements) and the net earnings from the sale (the selling price minus expenses like realtor fees and closing costs). What is the 14-day rule, and how does it affect rental tax implications? The 14-day rental rule determines whether your second home is treated as a personal residence with minimal rental activity or a rental property, which affects how rental income and expenses are taxed. Tax-free rental income (14 days or less) If you rent your second home for 14 days or fewer per year, it is considered a personal residence: Reporting rental income (more than 14 days) Renting your second home for more than 14 days per year requires reporting all rental income Rental expense deduction             Rental depreciation deduction If you are using your second home exclusively as an Many second home tax benefits mirror those of a primary residence, but your usage — personal versus rental — determines which perks you can claim, like the rental property depreciation tax deduction. Consult a licensed tax professional to fully understand your situation. Why own your dream second home with Pacaso? Understanding tax implications is important, but owning a second home should also be enjoyable. Pacaso offers a simpler path to vacation home ownership through Pacaso homes are not rented out

Whether you're applying for a mortgage for your first or second home, a letter of explanation can be vital to qualifying for home loan funding. If an underwriter requests a letter of explanation, welcome it as an opportunity to clarify your financial situation and clear up any confusion about your credit history or assets. A letter of explanation is particularly useful when an underwriter has concerns during the loan or mortgage application process. It addresses issues such as past bankruptcies or gaps in employment, ensuring a transparent and comprehensive understanding of the applicant's financial standing. Underwriters examine your financial history and determine if you qualify for the home loan you’re applying for. Since loan applications don’t include space for explanations, an underwriter may request that you submit a letter of explanation as evidence that you meet the funding criteria. Why do you need a letter of explanation? There are several reasons why an underwriter or mortgage lender may request a signed letter of explanation, particularly when it comes to a Here are some of the most common reasons you may need to write a letter of explanation. 1. You have a poor credit history Your credit history helps lenders know how you’ve handled debt in the past. The following red flags can potentially indicate poor debt management and may require a letter of explanation: If your credit score is low, it may be in your best interest to have a letter of explanation on standby. Share how you got negative marks on your credit history, and explain why you are still a good candidate for the loan. 2. You don’t have rental history Ideally, lenders want to see that you have a consistent rental history for the last 12 months. This reassures them that you will be able to handle regular mortgage payments.  If you have a gap in your rental history, explain the cause. Caring for a family member or recovering from an accident are possible explanations for a rental hiatus. 3. You have employment gaps Similar to your rental history, lenders prefer to see consistent employment in the year before your loan application. This shows the lender that you have the income to make regular mortgage payments. A lender can be flexible when they know more about the circumstances that led to an employment gap. Being laid off or raising children are possible explanations for the lack of recent work experience. 4. You report different addresses If the address on your driver’s license does not match the address on your loan application or credit report, a lender may ask you to explain the discrepancy. 5. Your income is inconsistent Underwriters will carefully review your income. If it fluctuates often, they may request a letter of explanation. If you are self-employed, your accountant may also have to write a letter of explanation to verify how you generate your income. You might also find it helpful to use a 6. You work remotely If your remote career is tied to an address in a city or state that is different from where you are buying a home, especially if that home is intended to function as a second home office, a lender may request that your company provide a letter of explanation verifying that your job (and income) will not be affected by your move. This situation is becoming increasingly common with the rise of “ 7. You have substantial losses on your tax return If you are a self-employed business owner or independent contractor, it’s normal to file losses on your first few tax returns. A lender may request a letter of explanation to ensure that these losses will not be recurring or affect your ability to make regular mortgage payments.  8. You cosigned a loan In the event that you cosigned a loan, a lender will want a letter of explanation stipulating that you are not the one making the payments. This can apply to student loans, auto loans and mortgages, even for a 9. You opened a new credit account If you open a new credit account while applying for a mortgage loan, a lender may suspect that the debt could affect your ability to repay your loan. Remember that the underwriter will also review your finances during closing, so hold off on opening new lines of credit until the sale is complete, if possible. 10. Your family members are on your bank statements If multiple people appear on your bank statements, like parents or children, you will need to write a letter explaining that you’re in control of the funds being used to pay for your new home. Anyone who helps you with the down payment of the home will also be responsible for writing a gift letter of explanation. 11. Your accounts are under fraud alert A lender will want to know that you’re aware of any suspicious activity on your credit report. If your accounts are under fraud alert or your credit is frozen, prepare a letter of explanation that outlines how you will regain control of your finances. How to write a letter of explanation step by step Before you write a letter of explanation for a mortgage, you’ll need some information first. Some of this you’ll have readily available (like your name), but you might have to gather or research other details, such as specific dates or documentation related to the situation you're explaining. Some of the common pieces of information you’ll need include:  Once you have your personal information on standby, you can construct a thoughtful letter of explanation detailing your circumstances and readiness to be a homeowner. Here is how to write a letter of explanation: Tips for a stronger letter of explanation Writing a letter of explanation can get you one step closer to Letter of explanation sample Keeping your explanation letter short and sweet is key. If you're struggling to write a concise letter of explanation, here is a letter of explanation sample to use as a guide and point of reference Letter of explanation template To make the process even easier, download this free letter of explanation template. Just fill in your information and personalize as needed. Why is a letter of explanation needed for a vacation home mortgage? Lenders may request a letter of explanation to better understand certain aspects of your financial or credit history before approving a vacation home mortgage. This helps them assess your ability to manage the new loan responsibly. Common situations include: If managing multiple mortgages or a high loan balance feels daunting, you may want to explore How does Pacaso help with vacation home financing? Refer back to our free template if you need help preparing an explanation letter for your next real estate purchase. And don’t forget to

What is empty nest syndrome? Empty nest syndrome occurs when parents report the feelings of grief, a loss of purpose, and loneliness after their children move out. While empty nest syndrome isn’t classified as an official health condition, it’s well documented — and very common. It may take some time for parents to adjust to the new normal of no children in the home. For most people, these feelings pass over time as they learn to navigate their new lifestyle.  While entering the empty nest phase of life represents the closing of one chapter, it also ushers in the beginning of another — one with more time to focus on other parts of life, like relationships with partners and friends, hobbies and travel. It also offers an opportunity to get to know grown children as adults, which can be a very rewarding experience in itself. What are the symptoms of empty nest syndrome? While the experience is different for every parent, it’s common to have a variety of emotions during this time:  What is the average age of empty nesters? The average age of empty nesters is typically late 40s to 60s. Unsurprisingly, downsizing homes or moving to a new destination are common real estate activities for people who are no longer actively raising children. Collectively, people in this age range make up 40% of home buyers and sellers, according to the What are the main characteristics of empty nesters? There are over 22 million so-called ‘empty nesters’ in the United States. Many still work full time and often find themselves in a time of financial transition. Some may no longer be financially responsible for the everyday expenses of their children — things like food, clothing and activities — and may find themselves with more disposable income. Others may be responsible  for college tuition, housing, and food while others may be managing increased taxes if they no longer have dependents to claim. What are some tips for empty nesters to make most of this stage of life? Once the dust has settled on the initial transition, usually after two to three months, you may find yourself ready to dive into a new routine. Here are a few tips for transitioning into and enjoying the empty nest stage of life. 1. Practice self care Dedicate time to a new self-care routine. With a newly open calendar, shortened to-do list, and new emotions, now is the time to focus on taking care of your physical and emotional needs. Exercise, sleep, 2. Invest in yourself You likely spent many years prioritizing your kids’ needs over your own, with their activities dominating the family calendar. Once the kids have flown the nest, you might find yourself with more free time than you’re used to. This is the perfect opportunity to 3. Connect with friends An abundance of free time means you can now expand your social horizons. You may want to reconnect with old friends you’ve lost touch with over the years, or seek out new relationships for this new era. Volunteer activities, affinity groups, and community organizations can be great places to find new friends who may be in the same season of life. 4. Get to know your kids as adults Your kids may not be little anymore, but part of the beauty of watching them grow up is the opportunity to know them as adults. This transitional period offers the chance to redefine your relationship and establish new roles and communication norms. 5. Reconnect with your partner In dual-parent families, it’s easy to slip into a routine where your daily and weekly routines revolve around caring for your children. Once your kids move out, it’s an ideal time to rediscover your partner and focus on spending quality time together. Consider 6. Talk to a professional This can be a hard transition for many. If your empty nest syndrome seems to last longer than expected or seriously affects your day-to-day life, it may be time to seek out a therapist or counselor. As an objective third party, a therapist or counselor can provide coping strategies and connect you with helpful resources. 7. Find a change of scenery When the kids have flown the nest, many empty nesters decide it’s the right time to reconsider their living situation. This might include downsizing the family home, renovating or What are some hobbies for empty nesters? Having an empty nest is the perfect opportunity to Why should empty nesters co-own a second home? Co-owning a second home is an ideal next step that fits seamlessly into many house plans for empty nesters ready to embrace freedom and flexibility. Shared ownership provides a practical way to enjoy a luxury vacation home without the full-time responsibilities of maintenance or management. If a second home is on your empty nester bucket list, Pacaso makes it easy to turn that dream into reality with a portfolio of

Whether you dream of a quaint chateau in the Loire Valley or a sun-drenched villa in Provence, buying property in France can be exciting. However, as a foreigner, the differences in property regulations and legalities may seem daunting. Our step-by-step guide covers everything you need to know, from finding the right house to understanding residency requirements. By the end, you’ll be well-equipped to make your French property dream a reality.  1. Pick a region  There are many French regions to explore, each with its own unique charms. From busy cities to the serene countryside, here are a few popular regions for real estate in France:  2. Find the right house Once you've chosen your dream region, the next step is to find the perfect French property. Consider your budget, desired lifestyle and long-term plans when selecting a home. Whether you're looking for a cozy apartment, a spacious family home or you want to To find the right property, you can explore listings online or work with a local real estate agent. For a hassle-free way to buy a second home in France, consider owning a Pacaso second home. Pacaso 3. Make an offer Once you’ve found the ideal Be aware of local customs and negotiation tactics when buying a house in France. A local real estate agent can guide you or 4. Do your due diligence Once your offer is accepted, be sure to conduct thorough due diligence to ensure a smooth transaction. This involves hiring a French notary who will handle the legal aspects of the purchase. The notary will draft a It’s wise to meet with a French attorney to review the 5. Get financing Securing financing for a foreign property can be complex. Traditional lenders may have specific requirements and limitations for international real estate purchases. To simplify the process, consider working with a company like Pacaso. They can handle the financing aspect of If you plan to explore traditional financing options, research international mortgage lenders specializing in French property. Be prepared to provide additional documentation, such as proof of income and assets, to qualify for a loan. 6. Pay a deposit  After the Keep in mind that this deposit is usually non-refundable, so make sure you’re confident in your decision before signing the 7. Transfer ownership Once all the necessary paperwork is completed, the final step is to transfer ownership of the property to your name, a process known as After signing the Why buy real estate in France Can Americans buy property in France? Yes, Americans can buy property in France. While there are certain legal and tax considerations to be aware of, buying real estate in France as a foreigner is permitted. It's wise to work with qualified professionals, such as a French notary and an attorney, to ensure compliance with all regulations as you walk through the buying process.  How much does it cost to buy French properties? The cost of buying a property in France depends on the region, property type and size. Here's a breakdown of the factors influencing overall cost: Average price of properties in France  Properties in popular regions like Paris, Lyon and Bordeaux tend to be more expensive than those in less sought-after areas. In 2024, the Taxes and fees   In addition to the purchase price, there are various taxes and fees associated with buying a home in France:  French real estate scams to avoid  While owning property in France can be a rewarding experience, you should also be aware of common real estate scams. Watch out for:  Make buying property in France easy with Pacaso By following these steps, you can successfully navigate how to buy a house in France. If you’re not ready to commit to a full-time move, consider co-owning a Pacaso second home. When you co-own a vacation home, you can simplify the home buying process and enjoy hassle-free ownership of your French property. 

Here’s everything you need to know about how to sell your Pacaso, what to expect along the way, and how the process compares to a traditional real estate sale. What is a Pacaso resale? A Pacaso resale occurs when an existing owner sells their ownership interest in a Pacaso home to a new buyer. While this differs from purchasing a new Pacaso share at initial launch, the ownership structure remains the same. All Because of this model, selling a Pacaso share is simpler than selling a traditional home. There’s no need for staging, showings, or home prep, no due diligence period, and no title or escrow process. Ownership is reassigned through the LLC, allowing for faster, more streamlined closings. Resales are a built-in feature of Pacaso’s How does the Pacaso resale process work? What does Pacaso’s role in the resale look like? Pacaso facilitates the resale process by helping source buyers, coordinating marketing efforts, and managing the administrative and legal steps required to complete the transaction. This support significantly reduces the friction typically associated with selling real estate. How long does a Pacaso resale take? Pacaso homes typically close much faster than traditional home sales.  Factors such as buyer financing and market demand may influence the exact timeline. How has Pacaso resale performed? According to RCLCO’s findings, from 2021 through 2024, shares of Pacaso homes achieved an average Compound Annual Growth Rate (CAGR) of 9.7%—4.7% higher than traditional luxury homes in the same markets. In several luxury destinations, from California to the Carolinas, Pacaso resales have consistently outperformed regional averages. From 2021 through 2024, Pacaso share appreciation exceeded market benchmarks in each destination, with Pacaso resales averaging a 10% overall gain. What are the fees and costs associated with a Pacaso resale? Compared to traditional real estate, resale-related costs are streamlined. Overall, the Pacaso resale process eliminates many of the unpredictable expenses associated with selling a traditional home. What are tax considerations for Pacaso resales? Selling a Pacaso share may result in capital gains, depending on your individual situation. Because Pacaso resales involve the transfer of an LLC membership interest rather than a traditional deeded sale, tax treatment may differ from a standard home sale. This information is provided for general guidance only. Owners should consult a qualified tax professional to understand how a Pacaso resale may impact their personal tax situation. What are other options for Pacaso owners? If your needs change, selling your entire share isn’t your only option. Owners who find they’re using less time than anticipated can right-size their ownership by selling a portion of their interest. A selldown follows the same process as a resale, allowing you to retain partial ownership while freeing up capital and flexibility. Is Pacaso a good investment? On average, Pacaso homes have appreciated in value, often outperforming traditional luxury homes in their markets. With a built-in resale marketplace and streamlined ownership transfer through the LLC, selling a Pacaso share is faster and simpler than a traditional second home, providing liquidity and flexibility. Beyond potential financial gains, owners enjoy a So, is Pacaso a good investment? Absolutely, for buyers who value both lifestyle and potential financial return.  A flexible, transparent way to sell Pacaso gives owners an exceptional level of flexibility, control, and peace of mind when it comes time to sell. With a built-in marketplace, professional marketing support, and a simplified transaction process, reselling Pacaso shares is designed to be as effortless as ownership itself.

When you fall in love with a dreamy vacation home, one of the first questions that comes to mind is simple but important: The cost of buying a second home goes far beyond the listing price. Monthly mortgage payments, taxes, insurance, maintenance, and long-term operating expenses all factor into what you can realistically afford. That’s where our second home mortgage calculator comes in. This tool will help estimate cost, and explore financing and ownership options to help you make a confident, stress-free decision. What goes into the cost of buying a second home? The purchase price of a second home is just the starting point. Understanding Key costs of buying a second home include: Understanding the complete cost of buying a second home, including ongoing second home expenses, helps ensure your investment enhances your lifestyle and supports your long-term financial goals.  How can a second home be a financial asset? While a second home is an expense, it can also function as a financial asset: Balancing these potential benefits against ownership costs is a key step in determining affordability—which is where a second home mortgage calculator can help. How does a second home mortgage calculator work? Our easy-to-use second home mortgage calculator takes the guesswork out of affordability by breaking the math into a few simple steps. The more accurate your inputs, the more helpful your results will be. Step 1: Enter your financial information Start by entering details that help calculate your monthly debt-to-income (DTI) ratio: Step 2: Review your debt-to-income ratio Next, you’ll see your current DTI ratio, calculated by dividing your total monthly debt by your gross monthly income. Lenders use DTI to assess risk—the lower your DTI, the more favorably you’re viewed. This step also shows your estimated cash on hand, or how much money you have left each month after recurring expenses. Step 3: Input second home loan details To estimate how much you should spend on a second home, you’ll enter: Step 4: Review your results Based on your inputs, the second home mortgage calculator helps determine the amount you would like to dedicate to a second home. You can also explore Pacaso second homes within your budget by selecting Now that you’ve run the numbers, let’s look at the bigger picture of making second home ownership work for you. What are five factors to consider when buying a second home? Just because a lender approves you for a certain loan amount at a certain These costs can have a meaningful effect on your overall financial picture, underscoring the importance of evaluating the bottom line beyond lender approval alone. 1. Know your financing options Knowing how you plan on 2. Revisit your current financial status To comfortably afford a second home, your debt-to-income ratio should ideally stay below 45%. Strong credit, substantial cash reserves, or a larger down payment may provide additional flexibility. Credit scores below 640 may make approval more difficult.  3. Understand second home mortgage requirements 4. Know your options for second home ownership Getting a second home mortgage may be more difficult if your goal is to become the sole owner, but that’s not your only option. Pursuing Purchasing your home through a 5. Learn how to increase your borrowing power After evaluating your finances, you may find that you don’t meet the requirements for purchasing a second home at the moment. The good news is that you have the power to increase your appeal to lenders with just a little time and strategy. These strategies along with a second home mortgage calculator can put you in a stronger position to get an affordable loan down the road. What are the key differences between primary residence and second home loans? When you’re considering buying a second home, it’s important to understand how financing differs from your first home. While the loan process might feel familiar, second home mortgages come with slightly stricter terms. From down payments to interest rates, here’s how the two compare side by side: How can co-ownership make your investment go further? For many buyers, the cost of buying a second home feels most daunting when taking on the full financial and operational responsibility alone. Co-ownership offers an alternative path—one that makes second home ownership more attainable without sacrificing quality, location, or experience. Through co-ownership, multiple buyers share an ownership interest in a home using structures such as tenancy in common, joint ownership, or an LLC. When thoughtfully structured and professionally managed, co-ownership can unlock access to high-quality homes while simplifying the ownership experience. By dividing both upfront and ongoing costs, co-owners can: What do Pacaso co-ownership costs entail? Pacaso builds on the benefits of co-ownership by offering a fully managed, transparent approach to owning a luxury second home. Buyers can purchase between 1/8 and 1/2 ownership of a professionally designed home, with costs clearly structured so there are no surprises. Pacaso pricing is organized into three main components: Share price The share price reflects the cost to purchase 1/8 ownership of the home. If you choose to buy additional shares, the price scales accordingly. The share price includes: Monthly home operating costs While a second home mortgage calculator can help determine affordability, non-mortgage related expenses can often catch buyers off guard. With Pacaso, these ongoing costs are budgeted annually and divided into predictable monthly payments, shared pro rata based on the number of shares owned. These costs include: Turnover services To keep the home consistently stay-ready, a turnover fee is charged after each stay. This covers professional cleaning, restocking essentials, inventory checks, and light inspections—so every owner arrives at a well-prepared home. A simpler path to second home ownership Understanding the full cost of buying a second home—and how different ownership models impact that cost—puts you in control of your decision. A second home mortgage calculator can help you translate those costs into real monthly numbers, giving you a clearer picture of what you can comfortably afford before you commit. Whether you pursue traditional ownership or explore co-ownership, clarity around expenses helps ensure your second home supports both your lifestyle and long-term financial goals. When you’re ready to explore a smarter, more flexible way to own a second home, Pacaso is here to help.