How much can doctors afford to spend on a house?

Finding the best place to buy a second home comes down to matching the location to your lifestyle, favorite hobbies and climate preferences. Consider how you want to spend your free time, who will be traveling with you, and how the market will look in five to ten years. To help you narrow down the choices, we've divided 22 top second home destinations into four groups: sunny beach escapes, desert retreats, quiet nature-filled destinations, and exciting international bases. If you're a foodie or wine lover, your second home to restaurants, spas and shops. When the snow melts, the town becomes a Madrid combines historic architecture with modern urban energy, notable attractions like the Royal Palace and world-renowned art galleries, and a culinary scene that never sleeps. Its blend of heritage, lifestyle and connectivity makes it one of the best places to invest in a second home abroad. The French Alps offer true year-round appeal: heavy winter snowfall for incredible skiing at spots like Mont Blanc, followed by bright, mild summers perfect for hiking and mountain biking. Demand for luxury chalets consistently outpaces new listings, reinforcing the region's status as a reliable, high-security market. Figuring out where to buy a second home starts with pinpointing exactly what you want out of your property. Keep a few key lifestyle factors in mind to narrow down the map and find a retreat that truly fits your needs. Finding the right second home destination comes down to knowing what you want and having a realistic path to get there. With the right location locked in, the next step is figuring out how to own it without taking on the full cost and responsibility of a whole home. That's where Pacaso comes in.

Yes, there are no legal restrictions on foreign nationals buying residential property in the UK. Whether you are an American, a European citizen, or a buyer from anywhere else in the world, you can purchase a freehold or leasehold property in England, Scotland, Wales, or Northern Ireland without any ownership cap or special government approval. Foreign buyers can also apply for UK mortgages, though lender requirements vary and can be stricter than for UK residents. Visa status, residency duration, and the length of time you have held a UK bank account can all affect your mortgage eligibility. Hiring a UK-based solicitor is strongly recommended; they handle the legal and conveyancing process and ensure all documentation complies with UK regulations. SDLT is calculated in progressive bands where you pay each rate only on the portion of the price within that band. How much you pay depends on three things: the purchase price, whether the property is your only home or an additional property, and whether you are a UK or non-UK resident. If the property you are buying is not your only home, whether it is a holiday home, a buy-to-let, a pied-à-terre, or a second residence in town, you trigger the Higher Rates for Additional Dwellings (HRAD). This means you pay standard SDLT plus a 5% surcharge on the entire purchase price, applied from the first pound. The surcharge took effect at 5% on 31 October 2024, up from the previous 3% rate. It applies even if the other property you own is located overseas. Since April 2021, buyers who do not meet UK tax residency requirements pay an additional 2% surcharge on top of all other applicable SDLT rates. For SDLT purposes, you are considered a UK resident only if you were physically present in the UK for at least 183 days in the 12-month period ending on your completion date. This is purely a physical presence test, separate from income tax residency rules. For overseas buyers purchasing a second home or holiday property in England or Northern Ireland, the 5% additional dwellings surcharge and the 2% non-resident surcharge stack on top of standard rates for a combined 7% surcharge above standard SDLT. If any one buyer in a joint purchase is non-UK resident, the surcharge applies to the entire transaction. Note: Scotland uses Land and Buildings Transaction Tax (LBTT), and Wales uses Land Transaction Tax (LTT). Both have their own rate structures and additional dwelling surcharges. Consult a local solicitor if you are buying in either country. SDLT is the most significant tax at purchase, but overseas buyers should also be aware of the following ongoing and exit taxes. Yes, foreign nationals can obtain UK mortgages, though the process is more demanding than for UK residents. Here is what to expect: Pacaso provides an alternative financing pathway for buyers who want co-ownership in the UK. Pacaso partners with banks and acts as a corporate guarantor, helping buyers qualify for financing of up to 70% of the property's share value, meaning you put down just 30% and finance the rest. This can be significantly more accessible than going through the standard UK mortgage application process as a foreign national. For buyers specifically looking for a luxury second home in London, Pacaso has curated a portfolio of fully managed co-ownership properties in The UK property market offers a range of home types, each with different ownership structures and price points. The UK buying process differs significantly from what American and international buyers may be used to. Here is a step-by-step overview. The entire process from offer acceptance to completion typically takes two to four months, though it can take longer for complex transactions or in slow markets. You will need proof of identity, proof of address, bank statements, proof of income, and any relevant visa or residency documentation ready throughout. When you co-own a Pacaso home, we are your trusted advisor throughout the buying process, helping you skip the mountain of preparation needed to buy property in the UK. Our local expertise and resources, combined with our innovative co-ownership model, make it easier to afford, buy and manage your home abroad. For overseas buyers who want the lifestyle of a UK second home without the full weight of sole ownership, Pacaso allows buyers to purchase a share (1/8 to 1/2) of a fully managed luxury home through a property-specific LLC, giving them a true real estate asset. Each home is professionally designed, fully furnished, and managed end-to-end, so you never have to coordinate maintenance, cleaning, utilities, or vendor relationships from across the Atlantic or wherever you are based. The financial case is compelling, particularly for buyers looking at the luxury end of the UK market. Here is how co-ownership addresses the key challenges outlined in this guide. Pacaso's London portfolio includes properties in Mayfair, Belgravia, and Chelsea, among the most sought-after addresses in the world for international buyers. To explore available co-ownership homes, visit

The IRS and mortgage lenders both use occupancy as the primary lens for classifying a property, but they look at slightly different criteria. A A The distinction matters because each classification triggers different mortgage programs, interest rates, down payment requirements, insurance rules, and tax treatment. Misrepresenting your intended occupancy on a mortgage application (known as occupancy fraud) is a federal offense that can result in loan recall, penalties, and bank fraud charges. Generally, no, a second home cannot simultaneously be your primary residence. The two categories are mutually exclusive by definition: a primary residence is where you spend the majority of your time, and a second home is where you do not. Lenders, the IRS, and state tax authorities all use this distinction to determine how to classify, finance, and tax a given property. That said, the designation is not permanent. A property that was originally purchased as a second home can become your primary residence later — but only if you actually move in and meet the qualifying criteria. The reverse is also true: a home you lived in as your primary residence can be converted to a second home if you move elsewhere. In both cases, the reclassification has real consequences for your mortgage terms, tax obligations, and capital gains exposure. If you are The difference between a second home and a primary residence touches nearly every aspect of ownership, from how much you'll pay to finance the property to what you'll owe when you sell it. Here's how the two compare: For a deeper look at how second home tax treatment works, see No, for federal tax and mortgage lending purposes, you can only have one primary residence at a time, regardless of how many states you own property in. Lenders and the IRS do not allow two properties to simultaneously qualify as a principal residence. This is a common question for people who split their time between states, such as a family that spends summers in one state and winters in another. Even in that scenario, only one home qualifies as the primary residence. The other is a second home. State income tax adds another layer of complexity. Some states are aggressive about claiming residents for income tax purposes, and they look at factors like where you're registered to vote, where your car is registered, where your children attend school, and how many days you spend in each state during the tax year. If you spend significant time in two states, you may be subject to residency audits, particularly in high-income-tax states like California and New York, which have formal rules around domicile and "statutory residency." If you're considering purchasing a second home in a different state and designating it as your primary residence later, it's worth consulting a tax advisor familiar with both states' residency rules before making the move. The tax implications of how a property is classified can add up to tens of thousands of dollars over the life of your ownership. Here are the most significant areas where primary vs. secondary residence tax treatment diverges: It's always advisable to consult a CPA or tax professional before making decisions based on residence classification, as individual circumstances vary significantly. Converting a second home into your primary residence is possible, but it involves more than simply spending more time there. Here's what the process generally looks like: The timeline matters too. The capital gains exclusion requires two full years of primary residence use, so if you're converting a second home ahead of a planned sale, plan your timeline accordingly. A tax advisor can help you model the after-tax outcome of different scenarios. If you're moving and planning to keep your former primary residence as a second home rather than selling it, the process works in reverse. You'll need to: For more on the broader financial considerations of owning two properties, see In a traditional tenancy-in-common arrangement, each co-owner holds a direct deed interest in the property. For mortgage and tax purposes, each owner's share is treated like any other residential property they own. If the property is not their primary residence, it's classified as a second home (or investment property if it's primarily rented out). Each owner can potentially deduct their proportionate share of mortgage interest and property taxes, subject to IRS limits. Pacaso structures each property through a If you're exploring a second home purchase and want to understand how different ownership structures are classified for tax and lending purposes, speaking with both a real estate attorney and a CPA before buying is the best first step.

When you've found a destination you love and keep returning to, buying a place of your own starts to make real sense. Hotel nights add up, availability is never guaranteed, and there's something different about having a home where you can set down roots, even part-time. But buying a second home out of state adds a layer of complexity that a local purchase doesn't have. You're working with an unfamiliar market, a local agent you've never met in person, mortgage requirements stricter than what you faced for your primary home, and a property you may have visited only once before making an offer. Planning ahead is what separates a smooth purchase from a stressful one. The right starting point is mortgage pre-approval. This gives you a concrete budget ceiling, signals to sellers that you're serious, and surfaces any financing complications before you've fallen in love with a specific property. For second homes, lenders apply stricter standards than for primary residences. Most require a larger down payment, typically 10% to 20% or more, a lower debt-to-income ratio, and confirmation that the property is at least 50 miles from your primary home and intended for personal use rather than full-time rental. Getting pre-approved first means you're shopping in the right price range from the start. Use a Choosing the right market is where out-of-state buyers spend the most time and where the most mistakes happen. A destination that looks ideal online can feel very different once you factor in cost of living, climate, seasonal crowds, and how accessible the property actually is from your primary home. If you can't visit your target locations early in the process, lean on online research to narrow the field. Real estate platforms like Zillow can give you a feel for local home prices and inventory. Community websites and local Facebook groups often surface the honest picture that listings don't show — what traffic is like on summer weekends, whether the town has enough to do in the off-season, how the neighborhood actually feels at different times of day. The goal at this stage is to identify one or two destinations worth visiting in person before you start seriously evaluating properties. The more research you do upfront, the more focused and productive that visit will be. Pacaso curates properties in proven second home markets, including Even when you can only manage a single weekend trip, an in-person visit is worth prioritizing. Seeing a neighborhood in person where you can walk the streets, experience the pace of the town, and check out restaurants and amenities delivers information no listing photo or Google Maps tour can replicate. During your visit, pay attention to more than the property itself: If an in-person visit isn't possible before you need to make an offer, virtual tours are the next best option. Many platforms offer Even if you do visit in person, take video and photos you can review later and share with family members. The more documentation you have, the better positioned you'll be when it's time to decide. How much everyday items cost can vary significantly across different parts of the country, and it's important to factor those differences into your second home budget before you buy. The purchase price is only the beginning. Beyond what you'll spend on groceries and gas during visits, the recurring ownership costs in a new state may look quite different from what you're used to at home: For buyers drawn to high-cost luxury markets, such as Many of the most desirable second home destinations are places where the climate varies widely from one season to the next. That seasonal variation is often part of the appeal — powder days in Mountain properties require the most seasonal preparation. Snow removal, roof load management, pipe winterization, HVAC servicing, and driveway maintenance are non-optional in markets like Tahoe, Aspen, and Park City. For out-of-state owners, this means either coordinating service providers remotely or Desert destinations like Before buying in any climate-sensitive market, spend time there in the off-season as well as peak season. The shoulder-season and off-season experience — how crowded (or quiet) the town is, whether the amenities you care about are still operating, what the weather actually feels like — matters a lot for how often you'll genuinely use and enjoy the home. Managing a second home from another state is one of the most consistently underestimated challenges of out-of-state ownership. Finding trustworthy local service providers — a property manager, a maintenance person, a landscaper, a plumber you can call in an emergency — takes real time and vetting, and the stakes are higher when you can't easily drop by to check on things. Even with a property manager in place, something will eventually go wrong when you're not there. A burst pipe in January, a roof issue after a storm, an HVAC failure in August. Having a reliable contractor network established in advance, not assembled in the middle of an emergency, is what determines how quickly and cleanly those situations get resolved. This is where co-ownership with Pacaso directly eliminates one of the most difficult parts of out-of-state ownership. Every Pacaso home has a dedicated Home Manager who handles all maintenance, repairs, cleaning, vendor coordination, and seasonal upkeep as part of the ownership structure. There's no property manager to hire, no contractor network to build, and no remote coordination when something goes wrong. The Home Manager handles it, and you're notified — not burdened with managing it yourself. A beautiful second home isn't worth having if you don't use it. Accessibility is one of the most underrated factors in second home satisfaction, and it's worth being honest about before you commit. Many second home buyers find they get significantly more use out of a home within driving distance, or at least a direct flight. The cost and hassle of connecting flights, long travel days, and the logistical lift of a multi-leg journey can make the difference between a home you visit six times a year and one you visit twice. That gap matters: the fewer visits you make, the less a full year of sole-ownership costs is doing for you. Consider these accessibility factors before choosing a market: Co-ownership reduces the pressure on every individual visit. Because you're not absorbing 52 weeks of carrying costs on your own, there's no guilt attached to a shorter stay, and you can take more frequent shorter trips rather than feeling obligated to maximize each visit. Even when you've found the right property, there are several procedural steps specific to out-of-state purchases that can trip up buyers who aren't expecting them. Getting a home inspection is non-negotiable when buying a house in another state, even though it's technically optional. As an out-of-state buyer, you can't easily revisit the property to check on something after the fact. A licensed inspector gives you an independent, on-the-ground assessment of the home's condition — roof, plumbing, electrical, foundation — and a report you can use to negotiate repairs, request a price reduction, or walk away if the issues are significant. Waiving the inspection means accepting the home as-is and assuming full responsibility for anything that surfaces after closing. Real estate laws and closing procedures vary meaningfully from state to state. Key differences that affect out-of-state buyers include: Your local agent and lender will explain how these rules apply to your specific transaction. This is one of the most important reasons to work with an agent who genuinely knows your target market, not just one who covers it broadly. Most states now allow remote closings, which means you can finalize the purchase without traveling to a title office. The process typically includes electronic signatures for most closing documents, remote online notarization (RON) via video call where the state permits it, and wire transfer of closing funds directly to the title company. Your title company or closing attorney will provide instructions in advance. Always verify wire transfer instructions through a confirmed phone call to the title company. Wire fraud targeting real estate transactions is common, and email interception is the typical vector. The friction points in this guide — limited in-person access, unfamiliar markets, management overhead, seasonal maintenance, and the cost of owning a property you use only part of the year — aren't random. They're the predictable result of sole ownership of a vacation home you don't live in full-time. To learn more about how the model works, see our full guide to

Let's say you have $400,000 to $1,000,000 to spend on a holiday home. During your research, you probably came across Equity Estates vs. Pacaso as top contenders. One setup puts your cash into a fund that buys a basket of properties, while the other side buys you a piece of one specific house. When you are Pacaso overview To understand By handling all the property management, cleaning and bill paying, many owners find that Here is a quick look at the advantages and trade-offs of this single-home approach:  Equity Estates overview Equity Estates takes a different path by operating as a private equity real estate fund. You pool your money with other investors to buy into a whole collection of luxury vacation homes. Equity Estates minimum investment ranges from $145,000 to over $1 million, depending on the specific fund tier.  A professional team handles acquiring and managing the entire portfolio so you can travel to various spots without dealing with landlord headaches.  Buyers who want access to a large portfolio instead of one specific house often consider high-end travel clubs as an alternative. Weighing Here is a summary of the clear benefits and potential drawbacks of this fund-based vacation strategy. Key differences between Equity Estates and Pacaso While both models cater to luxury buyers, they differ in terms of daily operations and long-term value. Looking closely at these operational contrasts helps you see how each choice shapes your future vacations and financial commitments.  Ownership structure and legal framework With Pacaso, you buy a specific share of a private limited liability company that holds the actual deed to the house. You and your co-owners hold real property equity, which sets the model apart from standard Equity Estates uses a private equity fund framework. Your money buys a share in the fund itself, and the corporate entity holds the deeds to all the homes in the collection. Fund managers make all the buying, selling and management decisions without needing owner input.  Usage, scheduling and flexibility Pacaso owners can only schedule stays at their specific home. Booking is handled through an app-based system called Equity Estates members book stays across a global portfolio of properties rather than returning to the same house. The fund uses a portfolio reservation system where availability is determined by the specific tier of your initial investment fund. Because you do not own a deed to one specific address, it can be harder to settle in. Fees and total cost of ownership Pacaso charges an upfront property markup fee when you buy your share to cover the initial platform costs. After that purchase, your ongoing expenses include a 1% annual management fee alongside your fractional share of LLC operating costs like taxes, insurance and maintenance. These regular bills are bundled into an ongoing monthly payment so you can track your exact carrying costs clearly. Equity Estates requires a higher initial capital buy-in to join the fund portfolio. Your long-term expenses include fund management fees, annual dues and portfolio operating costs. Because your money is pooled into a managed real estate fund, these annual costs fund the high-end concierge services across every single home in the network. Exit options and liquidity Pacaso runs an active resale marketplace where you can list your share whenever you want to move on. You set your asking price based on real property value, and new buyers can take over your exact stake. Selling a fractional share this way gives you a lot of flexibility since you do not have to wait for a corporate entity to liquidate the whole house. Equity Estates operates on a strict fund lifecycle that typically lasts 10 to 12 years. Your cash stays tied up for the entire duration because you cannot simply sell your share on an open market whenever you want. Once the timeline ends, the managers sell all the properties in the portfolio and return the capital, along with any gains, to the investors. Service and property quality Pacaso focuses on professional property management to maintain standalone luxury homes. Local property managers handle interior design, routine upkeep and property repairs so the home stays in peak condition. These properties feature upscale amenities like private pools, modern kitchens and expansive outdoor spaces built for a single-family retreat. Equity Estates features a curated collection of multi-million dollar residences located in elite resort communities and major global cities. Your stay comes with a personal travel concierge who stocks the fridge, arranges private chefs and plans local excursions before you arrive. Anyone reading an Equity Estates review will notice consistent praise for the high-touch hospitality workers who manage every detail of the trip.  Which ownership model is right for you? Choosing between these two setups hinges on how you want to experience your vacation days and manage your capital.  Explore co-ownership with Pacaso Deciding between Equity Estates vs. Pacaso depends entirely on what type of holiday home you are looking for. If you prefer owning a real piece of a specific luxury property that you can return to year after year, exploring Pacaso co-ownership helps you take the next step.  You can browse active listings in your favorite holiday destinations right now to find a property that fits your family's needs. To see the current inventory and find a home that matches your travel goals, take a look at the available

You're thinking of buying a second property and three main platforms have come up in your search. But weighing Pacaso vs. Ember vs. Ark7 isn't quite an apples-to-apples comparison. Each of these three companies serves different goals.  Pacaso offers luxury second home co-ownership for personal use. Ember is similar, but on a smaller scale. Ark7 is designed for passive-income real estate investing – you don't actually get to enjoy the homes you invest in.  Below, let's dive deeper to cover the key features, costs, listings and pros and cons of each platform. We'll guide you through picking the perfect platform for your specific goals.  How does Pacaso work? Pacaso offers professionally managed LLC co-ownership in luxurious second home destinations. Pacaso handles all the furnishing, maintenance, scheduling and fees so that co-owners get the benefits of owning a vacation home without having to manage it full-time. Its seamless property management and scheduling technology via the in-app SmartStay™ system makes Pacaso one of the Key features   Here are some of Pacaso's standout features: Estimated costs  Here are a few estimated costs that come with owning a share of a Pacaso home: Listing availability Pacaso offers listings all over the U.S. and in select international locations. Featured Pacaso pros and cons  Pacaso is best suited for those looking for This platform may not be the best option for first-time homebuyers, those who want to use their home year-round or those looking to generate passive income from an investment. Co-ownership with Pacaso is for luxurious personal stays in breathtaking homes and locations. How does Ember work? Ember offers co-ownership of vacation homes (typically ski, beach or mountain properties) with a tech-enabled booking and management layer. Like Pacaso, you can choose ⅛ to ½ real ownership share, setting it apart from a timeshare.  When weighing Pacaso vs. Ember, the major differences are listing availability and passive income opportunity. Ember offers a luxurious vacation home experience with relatively low entry requirements, but its listings are far fewer than those of an option like Pacaso. On the passive income side, Ember offers an Ember Flex program to offset costs by renting out unused time.  Key features  Ember's key features include: Estimated costs  Ember sits between Pacaso and Ark7 in cost.  Acquisition fees and ongoing costs are not publicly disclosed by Ember. Like Pacaso, there are also monthly maintenance and management expenses shared between co-owners. Listing availability  Ember has listings in fewer destinations than Pacaso and tends to focus on mountains, ski markets and beaches. Currently, it only operates in a handful of U.S. states, including Florida, Utah and California. Ember pros and cons  Ember is a good option for those who want fully-managed luxury vacation homes and may also want to rent out their unused time to help offset costs. However, due to their more limited listings, it's not the best for those looking for second homes in international locations.  How does Ark7 work? When comparing Ark 7 to Ember and Pacaso, it's somewhat of an odd one out — a completely different type of platform than the previous two.  Ark7 positions itself as an accessible platform for fractional real estate investing. Unlike Pacaso and Ember, Ark7's platform doesn't let you enjoy the vacation home experience. Instead, Ark7 investors purchase fractional shares in rental properties and may earn passive income.  Ark7 sources the properties and handles tenant management and operations. Investors receive a portion of the property's rental income and potential appreciation. Key features  Here are several of Ark7's key features: Estimated costs  Ark7's estimated costs include: Listing availability  Ark7 offers fractional ownership in single-family rental homes and small multifamily properties across the U.S. It operates in 10 markets nationwide, including Dallas, Indianapolis, Fort Worth and Atlanta. However, their listings can also change frequently because some properties can fully fund quickly.  Ark7 pros and cons  Ark7 targets those who want to get into accessible real estate investing. However, it isn't the market for customers who want a vacation property that they can actually use.  How do you choose the right platform for your goals? Use these three questions to guide your choice between these three platforms. 1. Do you want to personally use the property?  This is the first question to ask yourself. It will help you determine if you want a lifestyle purchase or a purely financial investment. Consider your goals: Do you want to host family vacations several times a year and enjoy the property's amenities?  If your answer is yes, Pacaso or Ember will be the most relevant options. These two are focused on second home co-ownership rather than passive investing. Instead of investing solely for financial returns, you're gaining access to a shared vacation home that you can personally enjoy.  2. Are you focused on a specific destination or property type? Some buyers already know exactly where they want to own a second home and that's completely understandable, considering how much the destination shapes the experience. Popular choices are ski towns, wine country and beachfronts around the world. If you have a specific destination in mind, Pacaso may be the strongest fit. With listings across national and international destinations, you're more likely to find co-ownership in the exact place you want. Ember has a smaller selection, mostly focused on ski and resort destinations in the U.S., so your destination may not be available. 3. Are you purely interested in real estate investment returns without personal use?  Maybe a vacation home lifestyle isn't your goal. Perhaps you are more interested in generating passive income, diversifying your portfolio or gaining exposure to real estate investing without directly owning a home.  If that's you, Ark7 may be worth exploring. Instead of vacation home access, Ark7 lets investors buy fractional shares in rental properties and potentially earn monthly income with lower minimum investments.  Why should I choose Pacaso for co-ownership? The right platform comes down to what you want from the purchase. If you're after passive income without ever using the property, Ark7 lets you invest in rental real estate for as little as $20 a share. If you want a managed second home with the option to rent out unused time, Ember is worth a look, though its listings are limited to the U.S. But if your goal is a luxury second home you'll actually enjoy, with

With year-round sunshine, beautiful beaches, and endless attractions for every traveler’s interest, there’s a lot to love about Florida. And while Florida has plenty of full-time residents, it leads the country in second homes. According to the This guide covers the top destinations, what to expect in terms of costs and financing, and how to make the buying process as smooth as possible, whether you're 1. 30A Also called the Emerald Coast, The area is popular among second home owners in search of beautiful white-sand beaches, impossibly blue-green waters and a slower pace of life. Its Florida Panhandle location makes this area a convenient vacation home location for homeowners throughout the South. 2. Delray Beach Located between West Palm Beach and Boca Raton, Delray Beach has an eclectic restaurant scene, a walkable downtown and an incredible range of live music venues. Atlantic Avenue, known by locals as “The Ave,” is bursting with local boutiques, galleries, spas, breweries and more. 3. Fort Lauderdale Fort Lauderdale is the perfect second home destination for those who believe that the best days are those with plenty of fun in the sun. Located 30 minutes north of Miami, 4. Marco Island Spend your vacation days surrounded by the beauty of the Florida Everglades. A barrier island located off the southwest coast of Florida near Naples, During sun-soaked days, explore the Ten Thousand Islands Wildlife Refuge by kayak, take a sportfishing excursion in the Gulf of Mexico, go bird watching at 5. Miami Cosmopolitan, multicultural and action-packed, Miami is a one-of-a-kind vacation destination. Second home owners in South Florida’s biggest city have a world of opportunities at their fingertips.  6. The Florida Keys Nowhere in the world is quite like Because the archipelago spans 125 miles, there’s an island town to fit every buyer. Key Largo is prized for its convenience, as it’s just an hour from Miami. Watersports enthusiasts and anglers may choose the Middle Keys for its incredible sportfishing and colorful offshore reefs. For a truly remote getaway, consider buying in Key West, the southernmost point in the United States.  7. West Palm Beach Like many parts of Florida, Golf at more than 20 courses within the city limits and some 75 more within 20 miles. Sink your toes into the sand at local beaches, including Lake Worth, Juno Beach and Ocean Reef Park. And on that rare rainy day, find shelter at the Buying a vacation home in Florida also comes with its own share of pros and cons. Before you take the next step towards owning your dream home, here are some pros and cons to consider. Pros of owning a vacation home in Florida Florida's combination of year-round sunshine, no state income tax, strong rental demand and long-term appreciation potential makes it one of the most compelling states for second home ownership. Cons of owning a vacation home in Florida Florida's high insurance costs, hurricane risk and ongoing ownership expenses are important factors to weigh before committing to a purchase. How do I buy a vacation home in Florida?  Buying a vacation home in Florida follows many of the same steps as purchasing a primary residence, but with a few key differences. Here's what the process typically looks like. Keep in mind that lenders typically require a 10–25% down payment for second homes, compared to as little as 3% for a primary residence. With Pacaso's professionally managed Own a vacation home in Florida with Pacaso Florida's combination of year-round sunshine, world-class beaches and strong second home demand makes it one of the most sought-after destinations for vacation home ownership. But between navigating financing, managing insurance costs and handling ongoing maintenance, buying and owning a second home on your own is no small undertaking. Pacaso simplifies the entire process. With professionally managed LLC co-ownership, you own a real share of a luxury second home without the hassle of managing it yourself. Each Pacaso home comes fully furnished and professionally decorated, with a dedicated local home manager handling the day-to-day so you can simply arrive and enjoy. Pacaso has luxury vacation homes available across Florida's most desirable destinations, including

Financing a second home is more straightforward than many buyers expect, but it is different from financing a primary residence in important ways. Lenders apply stricter qualification standards, certain loan products are off the table, and how you intend to use the property can change the terms you're offered. This guide covers every major financing option, what lenders are looking for, and how Pacaso's co-ownership model compares to traditional full-ownership financing. Before exploring specific loan types, it helps to understand how lenders evaluate second home borrowers. The baseline requirements are stricter than for a primary residence because lenders view second home loans as higher risk. If a borrower faces financial hardship, they're more likely to prioritize their primary home payment. Here are the key financing requirements for a second home most lenders apply: One important note on classification: calling your property a "vacation home" typically results in more favorable loan terms than calling it an "investment property." The distinction matters to lenders because it signals how you plan to use it. There are several ways to finance a second home, and they're not mutually exclusive. Many buyers combine more than one approach. A conventional loan is the most common path for financing a second home. It's not backed by a government agency, which means it comes with stricter qualification standards than FHA or VA loans, but it's available for second homes, which those government-backed products are not.  Conventional loans are available as fixed-rate mortgages (consistent payment for the life of the loan) or adjustable-rate mortgages (a lower initial rate that adjusts periodically). Fixed-rate loans are better for buyers who want payment predictability; ARMs can work for those who plan to sell or refinance before the adjustment period begins. Minimum down payment is 10%, and lenders typically want a 640+ credit score. Jumbo loans apply when the purchase price exceeds the conforming loan limits set by Fannie Mae and Freddie Mac; in 2026, that's $832,750 in most U.S. markets (up from $806,500 in 2025). Because they're not government-backed, jumbo loans come from private lenders and typically require a 20% to 25% down payment, a credit score of 700 or higher, and strong cash reserves. They're the standard path for financing a luxury second home in markets like Aspen, Napa Valley, or Malibu where property values regularly exceed conforming limits. A HELOC lets you borrow against the equity in your primary residence to help fund a second home purchase. It works like a revolving credit line. You're approved for a maximum amount and can draw from it as needed over a set period, usually five to ten years. Variable interest rates are typical, which means your payment can fluctuate. Most lenders allow you to borrow up to 85% of your home's appraised value minus your existing mortgage balance. You'll generally need a credit score of 650 or higher and a DTI below 43% to 45%.  The key risk: your primary home is the collateral. If you default, it is at risk. That said, for homeowners with substantial equity, a HELOC is often the most cost-effective way to fund a second home down payment without liquidating other assets. A home equity loan is similar to a HELOC but works differently in structure. Rather than a revolving line of credit, you receive a lump sum at a fixed interest rate, repaid in monthly installments over a set term. It's better for buyers who want a predictable repayment schedule and know exactly how much they need. Like a HELOC, your primary home serves as collateral. A cash-out refinance replaces your existing primary mortgage with a new, larger loan. The difference between the two — your equity — is paid out to you in cash, which can then be used toward a second home purchase. This option makes the most sense when current interest rates are at or below what you're already paying on your primary mortgage.  Most lenders require that you retain at least 20% equity in your primary home after the refinance, a credit score of 620 or higher, and a DTI below 45%. Keep in mind that you're extending your payoff timeline on your primary home and increasing total interest paid over the life of the loan. A 1031 exchange allows real estate investors to defer capital gains taxes by rolling proceeds from a sold investment property into a new "like-kind" investment property. This only applies if your second home is classified as an investment property, not a personal-use vacation home.  The rules are strict: you have 45 days to identify a replacement property and 180 days to close. A qualified intermediary must handle the transaction. This is a specialized strategy worth discussing with a tax advisor if you're selling an existing investment property and want to deploy those proceeds into a new one. If you have the liquid assets, paying all cash eliminates the mortgage process entirely and can make your offer more competitive. Pacaso also accepts cryptocurrency through BitPay, allowing eligible buyers to pay for their share with crypto and finance the remainder if they choose. The mechanics are similar, but the requirements are meaningfully stricter at every level. Here's a direct comparison of what changes when you're financing a second home versus a primary residence: Note that FHA and VA loans are for primary residences only and cannot be used to purchase a second home. To read more about how these loans compare, see our guide to There is no single best way to finance a second home. The right answer depends on where your wealth is concentrated. Here's a practical guide by buyer profile: For a detailed breakdown of funding sources by buyer profile, see our full guide to Financing a second home with no money down is difficult under traditional mortgage programs, but there are several approaches that can meaningfully reduce the cash required upfront: For buyers evaluating both paths, here is a side-by-side breakdown of how financing a second home outright compares to financing a Pacaso co-ownership share: Pacaso works with partner banks to offer Whether you're financing a second home through a traditional mortgage or a co-ownership share, the purchase price is only the starting point. Budget for these ongoing costs: With a Pacaso co-ownership share, most of these costs are included in monthly home operating costs and shared pro-rata among all owners, so you're never paying the full cost of a home you only use part of the year. Homes come fully furnished with luxury designer touches, and a dedicated Home Manager coordinates all maintenance and logistics. For buyers who want a luxury second home but aren't ready to absorb 100% of the purchase price and ongoing costs, Pacaso provides a different path. Pacaso allows buyers to purchase a share (1/8 to 1/2) of a For buyers just beginning to explore their options, the