Buying

Owning a second vacation home is the dream. But the traditional home-buying process can be overwhelming. Between hefty down payments, ongoing maintenance and limited usage, the path to a vacation home can feel daunting.  In this post, we'll show you how to make the dream a reality, breaking down how to buy a vacation home in eight simple steps. We’ll also explore key considerations to ensure your vacation property complements your lifestyle and financial goals. 1. Determine your vacation home’s use How to buy a vacation home starts with defining how you envision using your property. Will you escape for long weekends, spend summers by the shore or enjoy a cozy winter retreat? Your usage frequency will significantly impact property type, location and budget. Finally, think long-term. Will your vacation home be a family heirloom, a retirement haven or a potential 2. Choose a location 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. Start by asking: Do you want to be near the beach, the slopes or a buzzing downtown? Are you prioritizing proximity to your primary home, or is a remote escape more your style? The answers will guide you to your perfect destination. 3. Create a realistic budget Before diving into property searches, establish a clear financial roadmap. Determine the maximum purchase price you can comfortably afford for your vacation home. To understand how to afford a vacation home, remember that your budget extends beyond the property price itself. Factor in closing costs, ongoing property taxes, homeowners insurance and potential As well, consider exploring financing options tailored for second homes. Vacation home loans and home equity lines of credit can make ownership more accessible. Carefully consider interest rates, 4. Choose an ownership type When purchasing a vacation home, your ownership model is just as important as the property itself. The most common approaches are full ownership and co-ownership. Each offers different levels of flexibility, responsibility and cost. With full ownership, you take on 100% of the purchase price, ongoing expenses and maintenance, even if you only use the home a few weeks a year. On the flip side, with co-ownership, you own a real share of the home alongside a small group of vetted co-owners, with shared expenses and use. 5. Secure financing for your second home Before diving into property searches, it's crucial to secure To secure the best possible loan terms when buying a vacation home, shop around and compare offers from multiple lenders. Consider factors like interest rates, closing costs and lender fees. A pre-approval letter can strengthen your offer when you find your perfect vacation home. 6. Get pre-approved A pre-approval letter is a lender's formal commitment to loan you a specific amount to buy a vacation home. This document is crucial when making an offer, demonstrating your financial readiness to serious sellers. To obtain pre-approval, gather essential financial documents, including: Shop around for lenders to compare interest rates, loan terms and fees. Remember, a strong credit score improves your chances of pre-approval and can secure a lower interest rate, ultimately saving you money on your vacation home mortgage. 7. Find a local agent to make an offer Partnering with a knowledgeable local real estate agent is essential for navigating the Leverage your agent's expertise to craft a competitive offer. They can provide insights into fair market value, suggest appropriate offer terms, and handle the paperwork and communication with the seller's agent. A strong offer and your agent's negotiation skills increase your chances of securing your vacation home. 8. Plan for ongoing expenses and upkeep Owning a vacation home comes with long-term responsibilities beyond the purchase. To make the most of your second home, it’s important to plan for recurring expenses and regular upkeep — especially if you won’t be there year-round. Here are the key costs and maintenance tasks to factor into your decision: Common expenses: Ongoing upkeep:  Make your dream a reality with Pacaso  Learning how to buy a vacation home can be a transformative experience, offering a private retreat and a chance to create lasting memories. Carefully consider your budget, financing options, property location and the To make buying a vacation home even more feasible, consider

Owning a vacation home is a dream for many people — a beautiful home away from home where you, your family and your friends can relax, reconnect and enjoy living like a local in your favorite vacation destination.  Yet full second home ownership isn’t always the right fit for everyone. Owning a vacation home can be expensive, require a lot of effort to 1. Renting a vacation home When you Benefits of renting a vacation home  When you rent a vacation home, you enjoy a lot of flexibility. You can choose to stay in a different home, in a different destination, every time you travel. You can choose a smaller home for traveling with your immediate family, then a bigger home for a multi-generational trip or a trip with a large group of friends. Stay at a beachfront home for a warm-weather getaway, then spend a winter weekend on the slopes in your favorite ski resort town.  When you rent a vacation home, you won’t have the large investment of a down payment and monthly mortgage payments, nor will you have a long-term commitment.  Drawbacks of renting a vacation home When you rent a vacation home, you won’t build equity as you might with second home ownership. You also can’t make any changes to the home to suit your needs — what you see is what you get. Finally, you may have to negotiate rental restrictions and book far in advance to find a rental that suits your needs.  2. Timeshares With a Benefits of timeshares  As a timeshare owner, you enjoy cost-sharing benefits — per-night stays can often be cheaper than hotel bookings. And, since most timeshares are in a hotel or resort setting, you’ll enjoy access to on-site amenities and perks. Many people appreciate the predictability of their vacation costs as timeshare owners (although fees can vary year to year).  Drawbacks of timeshares  Just because the pricing is more predictable with a timeshare doesn’t mean it’s always affordable. Some of these programs have high annual fees and expensive maintenance costs that may increase each year. Another downside is that it may be hard to find availability during peak seasons in popular destinations. Finally, timeshares often depreciate in value over time, making it hard to sell your shares when you decide you no longer want to participate.  3. Vacation clubs As the name implies, vacation clubs are membership-based programs. In exchange for a one-time initiation fee and the cost of an annual membership, you get access to hotels, vacation homes, and, in some cases, travel experiences all over the world. You’ll find vacation clubs associated with major hotel brands, as well as Benefits of vacation clubs  While the specific perks vary from one club to the next, generally vacation club members enjoy access to a wide range of accommodations around the world, some of which are inaccessible to the general public. Nightly rates are discounted, and a host of amenities are included. Compared to other travel options, members often find bookings to be flexible. Membership also usually comes with perks such as concierge services, discounted rates on other types of travel and loyalty rewards.  Drawbacks of vacation clubs  The biggest drawback to being part of a vacation club is that membership can be expensive. Some also require long-term commitments, which make it difficult to cancel or modify your membership. Like many types of travel, members may find it difficult to book in-demand destinations during peak seasons.  4. Home exchange programs  Home exchange programs let you swap your home with another homeowner, offering a low-cost, immersive way to travel. Instead of paying for lodging, you and another household agree to exchange homes for a set period. It’s a community-driven option that’s gaining traction, thanks to platforms like Advantages of home exchange programs The biggest benefit of home exchanges is affordability. With no nightly rental fees, you can explore new destinations without stretching your travel budget. It’s also a unique way to live like a local, staying in a real home instead of a hotel. For those open to adventure, it’s a great way to experience different cultures in an authentic and cost-conscious way. Drawbacks of home exchange programs Home swaps come with some limitations. You’ll need to list your home and be willing to host someone else at the same time, which may not work for everyone’s schedule. Finding a compatible match in the location you want to visit can also be challenging, especially during peak seasons. And because you’re trusting someone with your home (and vice versa), communication and mutual respect are essential. 5. Co-ownership With Advantages of co-ownership The biggest benefit of co-ownership is the cost-sharing. Instead of shouldering the entire cost of buying and owning a second home, multiple owners split everything: the purchase price and the cost of maintenance and management. Because multiple parties pool their money, owners may be able to access a higher-end property than they’d be able to afford on their own. When you become an owner of a Pacaso, for example, you’ll enjoy a hassle-free, Drawbacks of co-ownership When you co-own a property, you have to equitably share time in the home with your fellow owners, so you may not be able to stay in the home every time you’d like. There’s also the potential of conflict or disagreements with your co-owners. Finally, you won’t have the full ownership benefits you’d enjoy as a single owner.  Co-own your dream home with Pacaso If co-ownership of a second home is the best fit for your vacation goals, budget and lifestyle, consider Pacaso. Our unique Fully furnished and expertly designed Pacaso homes are available in

When Consult with a financial advisor to ensure that this aligns with your overall financial strategy and that you fully understand the terms and potential risks involved. What is a home equity loan? A home equity loan allows homeowners to borrow money by using the equity in their home as collateral. Equity is the difference between the market value of your home and the outstanding balance on any existing mortgage. Not to be confused with a HELOC, a home equity loan is a lump-sum amount. Both funding sources, however, are exclusively for current homeowners looking for a Here are the main characteristics of this loan type: It’s important to note that if you fail to repay the loan according to the terms, the lender can potentially foreclose on your property. Can I use my house equity to buy another house? You can use the equity in your current house to buy another house. Although specific scenarios warrant using a home equity loan, you should use one prudently to prevent financial instability. When to use a home equity loan Using a home equity loan can be a strategic financial move in a few situations, such as:  In the right circumstances, a home equity loan can be the key to When to avoid a home equity loan Unless you’re investing in a home for the reasons above, you may want to consider avoiding a home equity loan as a funding option — especially for the following reasons: Before using a home equity loan, carefully evaluate your financial goals, purpose and ability to repay.  Requirements for a home equity loan Getting approved for a home equity loan to buy another house isn’t an automatic process. Lenders want to be confident you can manage the additional debt. To qualify, you’ll need to meet several financial requirements that show you’re in a strong position to borrow. Below are the most common eligibility factors lenders evaluate: Meeting these requirements doesn’t guarantee approval, but it positions you as a lower-risk borrower. This can make all the difference in securing a favorable rate and terms. How to get a home equity loan to buy another house From budgeting to closing on the loan, let’s explore everything you need to do to get a home equity loan to 1. Decide on a budget Before diving into the process of obtaining a home equity loan to purchase another house, it's crucial to establish a clear budget. Assess your current financial situation, including your: A well-defined budget can guide your decisions, ensuring you pursue a home equity loan that aligns with your financial capabilities and homeownership goals.  2. Gather your financial information Once you have a budget, the next step is to gather all the necessary financial information. This typically includes: Lenders will use this information to assess your home equity loan eligibility and determine the loan amount and terms.  3. Shop around for lenders With your financial information in hand, it's time to explore different lenders and loan options. Shop around to compare: Consider traditional banks, credit unions and online lenders to find the best fit for your needs. Remember that the goal is not just to secure a loan but to secure the most favorable terms. 4. Apply for a home equity loan After you've identified a suitable lender, you can initiate the application process. Complete the required forms, provide accurate information and be prepared for additional documentation requests.  The lender will likely thoroughly review your financial history, credit score and the value of your primary residence. Timely and transparent cooperation during this stage can expedite the approval process and potentially increase the chances of obtaining a home equity loan on favorable terms. 5. Close on the loan application Upon approval, the final step is a closing meeting to sign the necessary paperwork, which includes the loan agreement and other legal documents.  Be sure you fully understand the terms and conditions before finalizing the process to make an informed financial decision. Closing completes the transaction, allowing you to access the funds from your home equity loan.  Pros and cons of using a home equity loan to buy another house As with any kind of loan, there are advantages and disadvantages to using home equity loans to fund your next home purchase. Pay close attention to the pros and cons of home equity loans to ensure that this type of Advantages of a home equity loan A home equity loan can offer homeowners a powerful financial tool, providing access to funds based on the equity accumulated in their property.  Since these loans are unique to current homeowners, you’ll also benefit from your prior financing application experience.  Disadvantages of a home equity loan Despite the benefits, home equity loans have certain drawbacks. Understanding the potential disadvantages is essential before agreeing to a loan. Before pursuing a home equity loan, weigh the advantages and disadvantages to mitigate as much financial risk as possible. Alternatives to using a home equity loan to buy another house A home equity loan isn’t your only path to buying a second home. Depending on your financial situation and goals, you might find that another option offers more flexibility, lower risk or both. Here are five popular alternatives to consider: HELOC A home equity line of credit (HELOC) gives you a revolving credit line based on your home’s equity. You can borrow only what you need, when you need it. This is a great option for staggered home purchase costs.  It’s important to note that most HELOCs come with variable interest rates. This can cause your payments to lower if rates decrease, but also to rise if rates increase. Personal loan Another alternative to a home equity loan is a personal loan, an unsecured loan that doesn’t require collateral. Since personal loans don’t use your home as collateral, you won’t have the risk of losing your property in case of default. Reverse mortgage If you’re 62 or older, a reverse mortgage lets you tap into your home equity for cash with no monthly repayments required until you sell, move, or pass away. Older people primarily use this mortgage type to supplement their income later in life.  With reverse mortgages, interest accumulates and adds to the loan balance over time. This option can free up funds, but it’s important to understand the long-term impact on your estate and equity. Cash-out refinance A cash-out refinance replaces your current mortgage with a larger one, and you pocket the difference in cash. It can offer an interest rate lower than that of a personal loan, but your monthly payments will likely increase, and you’ll restart the clock on your mortgage. It’s important to carefully assess the impact of increasing your mortgage amount, as this will result in higher monthly payments and potentially a longer repayment period. Additionally, be mindful of closing costs associated with the refinancing process. Co-ownership If you’re looking for an alternative that doesn’t involve taking on more debt, co-ownership is a great option. You can enjoy turnkey living, equitable access through the Co-ownership vs. home equity loan Co-ownership offers a modern, more flexible path to second home ownership, especially if you’d rather not take on a second mortgage. With Pacaso, you can co-own a luxury second home in top destinations and enjoy true ownership without the financial strain of going it alone. Let’s break down how co-ownership compares to using a home equity loan: If being the sole owner of your second home isn’t the direction you want to pursue, consider co-ownership as an alternative. With Pacaso, you can

Buying a second home for romantic getaways Couples trips feel different when you have a place that is truly yours. If you are thinking about buying a second home, consider destinations that set the tone for connection and ease. Napa brings vineyard views and candlelit dinners, Maui offers warm water and pastel sunsets, Aspen delivers alpine charm, and Kiawah Island pairs wide beaches with quiet mornings. Pacaso co-ownership gives you access to a beautifully designed home in sought-after locations, so the weekend you want is always within reach. Napa for wine country romance Napa rewards an unhurried pace. Start with a late brunch, wander through tasting rooms, and end with a private soak under the stars. Many Napa vacation homes make outdoor living the focus, with dining terraces, fire features and space to open a favorite bottle after a day among the vines. For an intimate Napa home base, consider Maui for oceanfront seclusion Maui luxury homes put you close to sunrise swims, coastal drives and quiet dinners on the lanai. Wailea and Kapalua offer sheltered coves and golden sand, while upcountry drives lead to cool breezes and sweeping vistas. For two-person retreats, look for a private lanai, direct beach access or a calm neighborhood with easy paths to the shoreline. Settle into Lani, where indoor outdoor flow leads to a private yard at dusk and sweeping coastal scenery. It is a soothing spot to slow down after beach days. Explore Aspen for alpine romance Aspen luxury homes balance mountain energy with quiet interiors. Whether you prefer a bluebird ski day or a summer hike to a creekside picnic, the town’s walkable core and fine dining make date nights simple. Seek views of Shadow Mountain or a private hot tub to turn a crisp evening into a memorable night for two. Set in Aspen, Kiawah Island for coastal calm Wide beaches, winding bike paths and quiet mornings define Kiawah Island vacation homes. Days here move easily from a beach walk to poolside reading, with time left for an oyster bar dinner and a twilight ride along the lagoon’s edge. Look for outdoor lounges and quick paths to the sand for a smooth, two-person rhythm. How buying a second home elevates your time together The right home turns quick trips into a ritual. By buying a second home, you gain a ready-to-enjoy setting with design, location and comforts dialed in. Pacaso’s co-ownership model gives you a refined home in a world-class market without the full-time hassle, so more of your energy goes to shared experiences. If you love regular wine country weekends, powder days or beach escapes, buying a second home through Pacaso means the drive or flight ends at a front door that already feels familiar. Start your couples escape with Pacaso Choose the setting that fits your style, then explore Pacaso listings to make it yours. Browse

For those who love to travel, do so frequently, and want more out of their accommodations than simply a hotel room, vacation clubs and fractional ownership programs can be very appealing. While Two of the best known are How does Equity Estates work? A common gripe about timeshares is that you pay a lot of money into the program, yet you gain no equity in the properties you visit each year — you get only the right to use the property. Equity Estates offers an alternative. Instead of paying a membership fee, you contribute to an investment fund that buys you shares of the Equity Estates property portfolio. Down the road when your defined liquidity date arrives, the residences are sold and investors are paid back 100% of their initial capital contribution, plus 80% of the profits.  Properties and destinations During the years between investment and disbursement, investors enjoy access to 60+ destinations across over 25 countries. The properties are private, luxury homes valued between $2 million and $5 million, with amenities like oceanfront views, ski-in/ski-out access, swimming pools and private club access.  Access Depending on your level of investment, you’ll get a set number of nights per year. Equity Estates promises better availability than timeshares since homes are only available to investors. Cost In addition to your initial investment, which can start at $145,000 or more, investors pay annual fees to cover maintenance, daily housekeeping, a personal travel concierge, destination manager and local hosts.  How does Inspirato work?  Inspirato also promises luxury vacations at upscale private homes around the world, but the structure of the program is quite different from Equity Estates. Inspirato is set up as a subscription model featuring three tiers with varying levels of cost and benefits.  The Inspirato Pass The Inspirato Pass is the company’s core offerings. For a $2,550 enrollment fee and a monthly subscription of $2,550, members can choose from over 1.5 million Pass Trips, with all nightly rates, taxes and fees included. And it’s not just homes. You can also stay at top hotels and resorts and choose from cruises, safaris and guided tours. The pass is designed for travelers with flexible schedules, as you have to complete a booked reservation before scheduling your next trip. It’s also ideal for those who want to travel frequently but want the planning to be simple and straightforward.  Inspirato Club The third option, the Inspirato Club, costs $650 per month. Travelers get access to the Inspirato Collection of properties and experiences, with members-only nightly rates and travel planning assistance.  Inspirato luxury homes are owned by the company, but they have partnerships with hotel, resort and travel brands, ensuring you have access to stays and experiences all over the world.  Which option is right for you?  Whether you choose to go with Inspirato or Equity Estates depends on what you’re looking for out of a vacation club.  The people who join Inspirato tend to be frequent travelers who spend a lot on travel each year and have a flexible enough schedule to work around some of the inherent booking limitations.  Equity Estates appeals to people who spend significant amounts each year on travel, but want to see some return on their spend. Because of the potential for investment gains, the initial investment is higher than other options.  Equity Estates pros and cons Inspirato pros and cons Now get to know Pacaso Equity Estates and Inspirato aren’t the only innovators in the world of luxury travel. In fact, Pacaso takes the best of what these companies offer and delivers a smarter way to enjoy second home ownership.  With Every Pacaso home is fully managed, professionally designed and ready for you to enjoy, with equitable scheduling among owners.  Pacaso co-owners purchase shares in a property-specific LLC, and when you’re ready, you can sell your share to realize any returns on your property.   Comparing Pacaso and Inspirato An owner’s view of the differences Pacaso owner Mark also has an Inspirato membership. While he uses his Inspirato to “fill the gap” when he wants variety in destinations, he says he loves that his Pacaso gives him true ownership in a destination he loves.  “We’re kind of creatures of habit,” Mark said. “We like to go back to the same place that we know. We know it’s going to be quality. We get to know people in the community … it’s a totally different animal, and we prefer having the house.”  

There are so many ways to vacation: the consistency of a hotel, the extra space in a vacation rental, the structure of a What is a luxury vacation club?  A vacation club is a membership-based program that gives participants access to thousands of hotels, rental vacation homes and travel experiences. Luxury vacation clubs take these offerings to the next level, with an exclusive, curated collection of Many large hotel chains — Hilton, Marriott, Hyatt and Wyndham, for example — have travel clubs designed around their own collection of hotels and resorts. However, the most exclusive, high-end vacation clubs operate independently of a single hotel brand, offering their members a wide range of options.  How do luxury vacation clubs work?  While each luxury vacation club has its nuances, they typically operate with the same general model. Members usually pay a one-time initiation fee to join. Costs can range from a few thousand to much more, depending on how exclusive the club you join is. Then, you’ll pay annual dues, with prices fluctuating based on how much you want to travel each year.  In exchange for your investment, you have access to a wide range of accommodations and experiences, many with better perks, lower per-night costs and more options than you’d find if you booked on your own. Some offer a rewards program based on your spend.  The most exclusive travel clubs — among them What are the most popular luxury vacation clubs? Vacation clubs are available at a wide variety of price points, but in the luxury space, there are a handful of clubs that lead the pack among jet-setters.  Inspirato Inspirato boasts a portfolio of high-end homes, hotels and experiences in the most sought-after vacation destinations. Service is Inspirato’s hallmark, including travel planning, an on-site concierge, daily housekeeping and more. A rewards program provides extra discounts, early access to special events and complementary guest passes, depending on how much you spend each year.  Inspirato offers two tiers of membership: Inspirato Club and Inspirato Pass. Inspirato Club, a traditional vacation club membership model, lets you choose between a monthly or annual membership, both of which will set you back $7,800 per year. The monthly membership is more flexible, allowing new members to try out an Inspirato membership without a large upfront investment, but the monthly membership does require a $650 enrollment fee. The Inspirato Pass is a more flexible, monthly subscription model. For $2,550 per month, members can book Pass Trips from a list of over 1.5 million options, with nightly rates, taxes and fees included. There are limits to how many trips you can have reserved at a time. Exclusive Resorts  If Inspirato is a luxury vacation club, Exclusive Resorts is an ultra-exclusive vacation club. Their 4,000 members have access to 400 exquisite homes and expansive experiences in 75 global destinations. Most of the homes are owned by Exclusive Resorts, which allows for a consistently high level of service and amenities. Members enjoy the services of a travel planner before each trip, plus a dedicated concierge at the destination.  Exclusive Resorts invites only about 200 new members each year. Members pay a $195,000 initiation fee for a 10-year plan, plus $42,250 each year for 25 travel days. Solstice Collection Solstice Collection offers a more intimate luxury club experience, with far fewer properties but a promise of better availability. There’s a 6:1 ratio of homes to members, making it easier to book and enjoy time at the home you want. All of the homes in their portfolio are in the multi-million-dollar range and they include a sunny hillside estate in Cabo San Lucas, a historic palace in Florence and a private beach oasis in Koh Samui.  The costs of Solstice Collection membership include a one-time initiation fee of $15,000, plus annual dues ranging from $49,000 to well over $100,000, depending on how many nights you’d like to travel.  What’s the difference between a vacation club and a timeshare? While both In terms of financial investment, both timeshares and vacation clubs require an upfront payment and ongoing dues. However, timeshare owners often get saddled with maintenance fees, taxes and special assessments. And timeshares can be notoriously difficult to resell. How is Pacaso different? Luxury vacation clubs offer access to incredible properties around the world. So does Pacaso, with one major difference: You own your second home.  Discover how Pacaso stacks up against Inspirato. Pacaso uses an innovative With homes available from

When it comes to buying a house — whether it’s a primary residence or a vacation property — doctors are in a unique situation. Many doctors are considered high earners, but it can take years for the hard work to pay off. What’s more, many younger doctors are saddled with a large amount of student loan debt, which can make qualifying for a mortgage trickier than it might be for other buyers.  Whether you’re just considering buying or are thinking of adding a second home to your real estate portfolio, here are a few things doctors should consider, from how much you can afford to how to approach the process.   What salary do I need to afford a million-dollar home? Conventional wisdom says that you need an annual salary somewhere around $200,000 to You’ll also want to consider monthly costs above and beyond your mortgage payment. This includes things like HOA dues, utilities, maintenance, insurance and property taxes.  When is the right time for a doctor to buy a home? Buying a house is a big financial commitment, and it can take a significant amount of time to gain enough equity to offset the upfront purchase expenses like closing costs, repairs and moving expenses.  It’s common for doctors who are just starting out to move frequently, in pursuit of a specialty program, new opportunity or fellowship. In this busy career phase, renting may make more sense until you land a long-term position.  Buying a first house during residency Deciding to buy your first home is a milestone for all kinds of buyers, but physicians have a couple of additional financial realities to address during the application process.  If you’re a newer doctor, your loan debt may be high and you likely haven’t secured the salary of more established colleagues. This hurdle is specifically high for those buying a house during their residency.  A core part of getting approved for a mortgage loan is meeting the debt-to-income ratio requirements, or DTI. This is a calculation that compares your monthly debt obligations to your gross income. It’s a way lenders can be reassured that you’ll be able to repay your loan without defaulting.  Most medical school graduates have significant student debt. According to the Association of American Medical Colleges, anywhere from Enter the physician mortgage loan. Also called doctor loans or medical professional loans, these mortgages are specifically designed for doctors whose highest earning years are yet to come. These loans may have low (or no) down payment requirements, no requirement for private mortgage insurance (PMI) or more generous qualification criteria. Ask your mortgage lender for more information about this loan option.  Purchasing a second home as a doctor  As your career progresses, you may want to consider buying a second home. Being a physician is time-consuming and stressful, so it’s nice to have a place of your own to relax and unwind. Imagine cozy weekends in a mountain cabin, summer vacations in a sunny lakefront retreat or watching an ocean sunset from your private patio.  Pacaso is a great solution for busy professionals in a wide range of occupations to buy a second home. Ownership is shared among up to eight co-owners, which means that your upfront investment is lower. And we have homes in Co-owning a second home with Pacaso is a smart option for busy doctors, as it gives you the benefits of second home ownership without the work. Your dedicated property manager takes care of maintenance, repairs, cleaning and making utility, insurance and tax payments. That means that every time you’re ready to relax, you can just show up, unpack and unwind.  Our

Searching for a place to unwind, reconnect with loved ones and create lasting memories? 1. Enjoy your own personal retreat 2. Have flexibility for your vacations With a vacation home, you no longer need to fight for reservations during peak season or scramble to find last-minute Do you need a quick weekend escape to clear your head? Or a 3. Build a lifetime of memories A vacation home transcends bricks and mortar — it becomes a cornerstone for creating cherished memories with the people you love. Host unforgettable holidays and family gatherings to create lifelong memories.  Imagine cozy nights by the fireplace at your 4. Relish familiar settings Owning a vacation homes has the benefit of being your home-away-from-home. Equip your space with 5. Embrace a new community Purchasing a vacation home can open doors to a new community. Strike up conversations with friendly neighbors who share a love for the area. Explore local shops and restaurants, gaining a deeper understanding of the region's culture and hidden gems. This sense of belonging can enrich your vacation experiences and grow your sense of community at your second home. 6. Cultivate a sense of adventure A vacation home can serve as a springboard for exploration. Since you have a convenient home base, you can delve deeper into the surrounding area. Explore nearby towns, hike or bike scenic trails or discover hidden Proximity to these activities allows you to embrace a more adventurous spirit and enjoy experiences beyond the typical tourist’s itinerary. 7. Create a healthier lifestyle A vacation home can be a catalyst for embracing a healthier way of living. Many vacation destinations offer opportunities for Inside you vacation home, consider creating a dedicated 8. Pass down an asset to your children A vacation home can become a cherished part of your family's legacy. It can be a gathering place for future generations to reconnect with loved ones and create lasting memories.  Eventually, you can pass vacation homes down as an inheritance. A valuable asset like this can give your children and grandchildren a special connection to their family history. 9. Choose a location close to activities you love Finding a second home in a place that supports  your interests and hobbies can significantly enhance your lifestyle. Imagine living by a lake and spending your weekends fishing, or owning beach house with nearby easy access to kayaking or paddleboarding. For those who crave the thrill of winter sports or the serenity of mountain hikes, a cozy cabin could be the perfect fit. 10. Take advantage of unique financing options When buying a vacation home, you can access Additionally, your vacation home expenses don’t end with the Advantages of vacation homes Although owning a second home has some down sides, the advantages can greatly outweigh the trouble of finding and financing a vacation home. The pros of owning a second home or Personal use When you own your vacation accommodations, you always have a great place to stay (even if it’s a busy holiday weekend). You can keep all the comforts and necessities — clothes, toiletries, outdoor gear and more — at your vacation home so you can get away from it all at a moment’s notice. Unlike relying on reviews to choose a hotel room or short-term rental, you always know exactly what to expect when you arrive at your vacation home. Buying Your vacation home could become your primary residence once you retire, but you can start enjoying it and building equity long before it’s time to turn in your employee badge. In the meantime, it’s a special place to bring family together for vacations and special events. You can also pass down your vacation home to your heirs. Passive income potential Although some owners prefer to keep their vacation home exclusively for personal use, listing your second home as a short-term rental may also be possible. If you don’t want your vacation home to sit vacant when you’re not using it, you may be able to rent it out to others and use the money toward the mortgage and maintenance expenses. Potential property appreciation Whether you plan to keep your vacation home for personal use or earn passive income, your property may increase in value. A secondary residence can increase equity and value appreciation like a primary residence.  In this way, buying a vacation home can be an investment. Of course, housing markets fluctuate, so value appreciation depends on market trends where you buy. Adding real estate to your portfolio is a great way to diversify your portfolio and hedge against the ebb and flow of different markets. It’s always smart to consult a financial planner before making such an investment.  Tax benefits You can deduct any mortgage interest paid on up to $750,000 of principal mortgage debt, including your vacation home. Other If your vacation home doubles as a short-term or long-term rental, you may also be able to claim certain costs as business expenses for your vacation rental business. Consult with a tax professional to determine which  tax deductions you’ll be eligible for. Challenges of vacation homes Vacation home ownership also includes several challenging cons. Property maintenance and management Your second home likely won’t be close enough to your primary residence for you to stop by frequently. Home repairs and regular maintenance (lawn mowing, snow removal, etc.) can become a hassle. And if you’re renting out your second home, you must deal with reservations, clean up and more.  A potential solution is to Income volatility If you plan to rent out your vacation property, you’ll need to be aware of the high and low tourist seasons in your home’s locale. Plan for income fluctuations and charge appropriate nightly rates to curb potential low-season vacancies.  To keep attracting bookings, you may need to pay for marketing and advertising your property to help decrease income volatility. Local vacation rental laws Many towns are passing ordinances prohibiting short-term rentals or requiring homeowners to pay hefty fees to list a home as a rental. Check local laws before banking on your ability to rent out your vacation home.  Remember that other Limited location Once you invest in a vacation home, you’ll probably want to use it as much as possible. That means you’ll likely spend more time in one Just like an unused gym membership or a new dress in the back of the closet, a distant vacation home can easily turn from a dream come true into a money pit if you’re not committed to using it regularly. Co-own a vacation home with Pacaso While there are nearly a dozen reasons to buy a vacation home, the initial cost and ongoing maintenance can be daunting. Pacaso offers a unique DISCLAIMER: This content is published solely for informational purposes and isn’t intended to be investment advice. You should consult an appropriate professional for specific advice tailored to your situation.

If you’ve found the most incredible second home in a picture-perfect location, there’s a good chance you’ve started looking into financing options to make your dreams a reality. So let’s discuss how to buy a second home with no money down.  We won’t lie: 1. Use government-backed loans by changing your primary residence  There are several government-backed loans for second home options to consider. The first is VA loans are for The second is 2. Assume an existing mortgage  Another option for a no-down-payment mortgage is to assume an existing mortgage. If the seller’s home has an 3. Tap into existing home equity  You can also choose to tap into your existing home equity by using a Or use a home equity line of credit ( If you already have a mortgage, these would both be second mortgages that you’d need to pay in addition to the first.  4. Reverse mortgage A reverse mortgage is an option for seniors 62 and older. It allows seniors to access home equity without monthly mortgage payments, and the funds can be used as a The loan is repaid when the senior sells the house, moves out or passes away — whenever they no longer live in the home. The heirs or homeowners must repay the loan, usually by selling the home. It’s important to note that this type of loan comes with high fees and complexities. We strongly recommend consulting a financial advisor first if you’re considering a reverse mortgage.  5. Gift of equity  Another no-money-down mortgage option is a gift of equity. A gift of equity is when someone with whom you have a close relationship sells you a home below market value. Usually, the person is a family member.  If the gift of equity is equal to 20% or more of fair market value, you can avoid down payment contributions. However, you’ll need to consult tax advice to understand the tax implications of a gift of equity.  6. Lease with option to buy  A lease with option to buy, or lease option, is a rent-to-own contract that lets you rent the property to test it out, with the opportunity to commit and buy at the end of the lease. Usually, the lease contract is for a number of years.  If you decide to buy, rental credits can be applied toward the purchase price and converted into a down payment. It’s important to negotiate these terms upfront with your landlord with the help of a tax professional and real estate attorney.  7. Seller financing  Another option is to negotiate directly with the seller to finance the purchase. You may be able to negotiate terms that require less or no down payment. However, it’s very important to be aware that seller financing doesn't include standard mortgage protections, so you may not have the same legal safeguards as you would in a traditional mortgage. 8. Retirement account access  You can This allows you to borrow money from your 401(k) and repay it with interest. You can also make a 401(k) withdrawal for your home purchase. However, if you are under 59, you’ll have to pay a 10% withdrawal penalty plus income tax.  9. Partnership or co-borrower Lastly, consider partnering with someone who can provide the down payment while sharing the ownership or financing burden of the second property. Key considerations  Buying a second home with no money down can be a huge leap, and it’s important to know how it will impact your financial future. Here are some things to consider before you take the plunge: An alternative approach: Pacaso co-ownership  So, can you buy a house with no money down? Technically, there are ways, but it can be a tough road to go down. Instead, consider Pacaso as a better approach to Pacaso’s fully managed LLC co-ownership model allows you to purchase 1/8 or 1/4 of a vacation home property. You split the costs with your fellow co-owners, while our local maintenance crews handle daily maintenance and management. You and your loved ones get exclusive access to the home at specific times throughout the year. Get your dream second home with Pacaso  As you think about how to buy a second home with no money down, consider Pacaso for a lower-cost, hassle-free way to co-own your luxury vacation home. Finance up to 70% of your home’s purchase price and sell your home at the time and price of your choice. View our

Dreaming of Let’s explore the seven steps of how to purchase a second home: 1. Determine your budget Buying a second home is a significant Determining your budget for a second home 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 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 and lifestyle. 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 their fair share of added expenses, they also offer a few tax deductions that make your second house dreams less costly. As you’re crunching the numbers, remember your second home can also be a source of rental income and 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 classifying your second home as an Buying a second home doesn’t have to be a solo endeavor. 3. Compare lenders When comparing lenders for a second home, 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 is a simple process, with many lenders allowing you to apply online. They look at your financial history, including your current income and debts, to give a rough number regarding what you can afford. At this stage, Having a pre-approval letter from a lender can give you a leg up when it’s time to make an offer on your dream second home. Be aware, however, that since some 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 perfect location. Going with your favorite 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. According to Redfin, the going rate of a real estate agent is about 6. Make an offer Purchasing a second house 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 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.  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.  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 The ideal second home 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 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. 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. Finally, when looking to take a big step forward in your second home journey, you'll want to look at the Now that you know how to buy a second home, it’s time to find the second house of your dreams. If turn-key luxury is what you’re after, consider buying a second home with Pacaso. Each of our co-owned homes is part of an LLC, is fully decorated and furnished, and comes equipped with a dedicated property manager to make your second home ownership journey as stress-free as possible. We even Check out our

The good news is that if you 1. Savings and investment account Using your personal bank account to fund your second home But that’s not the only personal fund you can tap into for Using money from your investment account is similar to withdrawing from your savings account. The key difference is that you may need to pay taxes on any gains the money earned while invested. 2. Sale of an asset Selling assets when you come up short on funds may be the only way to keep that second home of your dreams from slipping through your fingers. Understanding If you see your property as a better investment than your savings, it may be worth it to 3. Retirement account Tapping into retirement accounts, such as a 401(k) or IRA, can be a source of funds for your down payment for a second home. However, this age-sensitive strategy may not be advisable for those nearing retirement. If you’re not comfortable dipping into your savings or selling assets, you can still seek outside funding help.  4. Home equity loan or HELOC The value you've built in your current home can be a powerful resource when purchasing a second property. Leveraging your home equity gives you access to funds at generally favorable rates compared to many other financing options. A practical approach to securing funds for a second home down payment is utilizing the equity you've accumulated in your primary residence. This strategy involves either securing a Home equity loan With a home equity loan, you receive a one-time payment based on a portion of your home's value through a secondary mortgage. The key benefit is maintaining your original mortgage intact — particularly advantageous if you have a favorable interest rate.  Since these loans are second in line for repayment if financial difficulties arise, they typically carry higher interest rates than current mortgage rates for second home loans. Home Equity Line of Credit (HELOC) A HELOC functions as a secondary mortgage but operates more flexibly, similar to a revolving credit account. During the initial access period (generally five to 10 years), you can withdraw and replace funds repeatedly. You'll only pay interest on the amount currently borrowed.  After this period ends, the withdrawal option closes, and you begin repaying both principal and interest on whatever balance remains. Since HELOCs feature adjustable rates, your payments may fluctuate monthly based on market conditions. Cash-Out Refinance When choosing a 5. Government-backed loans While traditional government-backed loans are designed for primary residences, there are strategic ways to use these programs that can help you Government-backed loans such as VA or USDA offer low or no down payment options, typically for primary residences rather than second homes. However, by carefully planning your home purchases, you can transition from one primary residence to another while retaining your previous home as a second property.  6. Reverse mortgage A reverse mortgage allows homeowners aged 62 and older to convert part of their home equity into cash without having to sell their home or pay additional monthly bills. The loan is repaid when the borrower moves out, sells the home or passes away, making it a potential source for second home down payment for retirees. 7. Gift of equity funds When purchasing a second home from a family member, a gift of equity can be mutually beneficial. This approach involves the seller (often a parent or relative) transferring a portion of their equity in the property to you as a gift, effectively reducing the purchase price and minimum down payment for a second home. 8. Assumable mortgages An assumable mortgage allows you to take over the seller's existing loan instead of obtaining a new one. This can be particularly advantageous in a rising interest rate environment, as you may be able to secure a lower rate than what's currently available. This is an excellent option for those researching how to buy a second home with low down payment. 9. Seller financing Seller financing creates a direct financial arrangement between you and the property seller, bypassing traditional mortgage lenders. The seller essentially becomes your lender, allowing you to pay them directly according to mutually agreed terms. This option can be helpful when considering a loan for a second home with non-traditional terms. 10. Lease with an option to buy This arrangement allows you to rent a property while securing the right to purchase it in the future. During the lease period, a portion of your monthly rent may be credited toward the eventual down payment on a second home, helping you build equity while you live there. While sticking to one funding source may not be enough for your down payment — or put you into financial jeopardy — using a mix-and-match approach may improve your situation. Mitigating risk is still important even though real estate is considered a relatively safe investment. Look into each of these strategies further to learn which is best for you when Are second home down payments always required? In most cases, a down payment on a second home is required. If you plan to pursue a conventional loan for financing a second home, you’ll need to put money down upfront since they aren’t backed by the government. Even if you plan to pay for the home entirely in cash, you’re still technically putting down a large payment.  If you plan to turn your second home into a primary residence, then it’s possible to get a government-backed loan. In that case, you won’t need a down payment for a second home.  How much do I need for a down payment on a second home? The down payment for a first home can be as low as 0% and as high as 20% for a conventional loan. However, the required down payment for a second home is around The amount you’ll need for a down payment on a second home depends on several factors, including your credit score, your debt-to-income (DTI) ratio and the cost and type of property you’re purchasing. Down payments and interest rates for second homes can also vary depending on the lender, so it’s a good idea to shop around. Here is a closer look at how these factors can affect your down payment: Any tips on how I can reduce the down payment on my second home? One of the best ways to lower the out-of-pocket expense for a second home down payment is by reducing how much you’re paying for the home. But that doesn’t necessarily mean sacrificing square footage, quality or location.  Explore your options for second home ownership Finding the right financing strategy can help you achieve your dream of owning a second home, whether through a government-backed loan, a conventional mortgage, or co-ownership. If you’re looking for a modern, hassle-free way to own a second home, Pacaso makes it possible. Pacaso offers LLC co-ownership of luxury second homes, providing a streamlined and cost-effective alternative to traditional second homeownership. With professionally managed properties and a fully integrated ownership model, you can enjoy all the benefits of a second home without the hassle of maintenance. Want to learn more? Visit our

Not finding the right s Check out our list of alternatives to Airbnb before you book your next vacation: 1. Pacaso  Pacaso is also a great Co-ownership helps buyers afford 2. VRBO Like Airbnb, 3. Booking.com It is becoming a formidable Airbnb competitor in the vacation rental market, with offices in more than 70 countries and over 28 million listings, including hotel rooms. Booking.com charges a higher booking fee — 15% compared to Airbnb’s 3% — and renters will often pay these fees in the form of higher prices.  4. Hipcamp Hipcamp is like Airbnb for campers, offering a range of campsites that accommodate tents and RVs. This makes it one of the Since guests may travel to remote locations, Hipcamp has established standards to ensure safety and privacy. For example, hosts must limit campground occupancy and provide safety warnings for common dangers in the area.   Hipcamp’s search filters allow you to find the perfect spot for your desired activities. So if you want to hike, fish or ride horses, your hunt just got easier. The affordability and convenience make Hipcamp a great option for nature lovers.  5. Marriott Homes and Villas Managing expectations is one of the most challenging factors when staying at independent vacation homes. Hotel chains can deliver on cookie-cutter expectations but often lack the personal touch. The inventory is still growing — currently about 60,000 listings — but it has something most other alternatives to Airbnb don’t: a rewards program. Travelers can earn and redeem points for discounted stays in the future with a Marriott Bonvoy account. 6. Hopper Homes The streamlined app-only interface is convenient to use, with fewer distractions than many other platforms. Travelers can book their stay instantly rather than waiting for approval and receive flexible cancellation policies.  Hopper has its own rewards program in the works, Carrot Cash, to help customers save even more money while traveling. 7. Plum Guide Expect to pay more than the average vacation rental, but the price may be worth it if you value the luxury vacation experience. Plum Guide does offer price matching, just in case you see the same rental listed for less on another platform. 8. Agoda  You can receive a discount for being a solo traveler and find other discounts through a “secret deals” feature. Agoda’s website and app operate in 38 languages, with customer care in 16. While travel booking sites have moved into the rental property industry, Agoda performed a reverse migration. In 2019, the site launched a flight aggregator to compare hundreds of sites at once.    9. Homestayin When you travel, do you value cultural immersion above all else? It’s an affordable alternative to hotels while being a step up from the typical hostel. Homestayin is available for short- and long-term rentals, appealing to backpackers and students alike.   10. Sonder If you’re looking for a service like Airbnb that retains the comforts of a hotel, check out Every unit has a full kitchen, mini toiletries and Wi-Fi, making it great for long-term stays. The app allows for contactless check-ins along with requests for clean towels and restaurant recommendations.  11. Blueground If you’re living the digital nomad life, 12. Onefinestay All of the listings are whole units, so you won’t share the property with other travelers or the owner. The accommodations include houses, chalets and luxury villas, giving you the personal touch missing from hotels while delivering professional property management.  13. 9flats It works like an aggregator for other travel sites, so if you have issues with the interfaces of the other big names, 9flats might be more your style. It offers features like instant booking and advertises the maximum occupancy of every listing on the results page for quick scanning.  14. FlipKey While solo travelers can use FlipKey, it is ideal for groups. Finding a place big enough for a group can be challenging on other sites. FlipKey is facing the problem head-on.  15. Glamping Hub Like Airbnb, Glamping Hub is only a booking platform, so you’ll still depend on the property owner to deliver the rental as advertised. Glamping Hub allows you to filter through listings based on the type of building, cost and features, so you’ll have as rustic or luxurious an experience as you’d like.  16. ThirdHome To qualify, your second home must be worth at least $500,000, in a desirable location and well-maintained. This niche marketplace has 14,000 options, including entire estates and yachts. While you won’t pay a rental fee, Thirdhome does charge a booking fee that ranges between $495 and $1,395 per week.  17. Outdoorsy 18. Wimdu Users can choose from an array of filter options to search by distance to the city center (which is great for public transportation users), average ratings, amenities and price. They also have several pet-friendly listings and cater to families as well as solo travelers and couples.  19. Tripadvisor Vacation Rentals Tripadvisor taps into its deep reservoir of user-generated travel recommendations and reviews, so users get local recommendations on where to eat, the best excursions and more. 20. Expedia Vacation Rentals Reviews are also abundant here, helping travelers make an informed decision about what to do outside of the accommodation as well, allowing users to seamlessly combine their accommodation bookings with other travel essentials such as flights and car rentals.  21. Vacasa 22. HomeToGo Like Airbnb alternative 9flats, HomeToGo saves travelers time by allowing them to compare multiple sites in a single place rather than having to set search filters like budget and amenities on multiple sites to find answers. Once you find a rental that you like, you finish booking through the provider’s website.  23. Kid & Coe Since 2013, Regardless of the accommodation type, each hand-picked listing has a supply of books, toys and child travel essentials awaiting every family in 50 destinations around the world. Visitors can also request cribs and high chairs, ensuring a turnkey experience for every guest. When searching for a great vacation property,