10 reasons to buy a vacation home + pros and cons

It’s no secret that home prices are substantial. The average sales price for new houses sold in February 2025 was Other factors, like initial costs, interest rates, insurance costs, property taxes, maintenance responsibilities and the ever-changing economic landscape, can also shape how people choose to live and if they decide to invest in real estate.  Let’s go over the pros and cons to help you decide whether it's better to rent or buy a home. Pros and cons of owning a home Owning a home provides more stability and long-term equity but comes with varying costs, especially with a variable-rate mortgage. Here’s a list of pros and cons when purchasing a home: Pros Owning a home can build equity over time, but it’s more than that for most. Part of this ownership comes back to making the home your own. Home improvements are a boon to homeowners who want to increase the value of a home or truly make it theirs. However, depending on the Equity is still a vital tool for homeowners. Homeowners can use equity to turn a profit on the home later, or they may also borrow against it to pay for expenses like medical bills, college tuition and home improvements.   There’s also the stability. Unless you pay cash, fixed-rate mortgages enable flat monthly payment amounts over the life of the loan, except for insurance premiums and tax fluctuations over time. Even so, these can be relatively minor fluctuations you can plan for. Cons Homeownership is generally more expensive than renting because there are more costs to consider, such as property taxes, higher insurance costs, utility costs and maintenance. Many of these can also fluctuate depending on varying factors, such as insurance rates in your area. Buying, setting up a mortgage and scheduling necessary inspections could also be time-consuming. If you need the home now, waiting for these processes to complete can be frustrating, sometimes being pushed by several months, depending on scheduling limitations.  Homeowners might also see their creative vision limited by a Homeowners Association (HOA). While HOAs can sometimes benefit you through snow removal, lawn maintenance, and other services, others can restrict housing colors or your plans to expand your home. Pros and cons of renting a home Renting a home saves time from the purchasing process and provides more flexibility while trading in the benefits of ownership, such as tax breaks or stable payments. Here’s a list of pros and cons when renting your home: Pros Renting works well for those who value flexibility, convenience, and savings. Median rent was around Renters are also not responsible for maintaining as much of their unit, enabling renters to save what they would spend on maintenance costs for a Cons A renter’s main inconvenience is the lack of control. There’s no home customization, you might be subject to Renters may also have their home sold while they live there, meaning they’ll have to move out at the end of a lease term. Some lease contracts even have clauses forcing the renters to move out within 30 days if the property is sold. It’s vital to read your contracts fully, regardless of renting or buying. While home ownership is often seen as a goal to strive for, renting vs. buying a home may make more financial sense in certain stages of life.  Let’s look at the differences between buying and renting. Buying vs. renting: 5 differences to know:  Your costs and lifestyle needs will affect whether renting or buying a home is better. Here’s a table breaking down some major differences. 1. Monthly housing payment Homeowners are responsible for a wide range of costs taken by a mortgage company, often through an escrow account. Your mortgage company uses the escrow account to pay property taxes and homeowners insurance. You might also need to pay mortgage insurance premiums if you purchase your home with a down payment of less than 20 percent. Utilities are billed separately.  If you rent a home, you will pay a set amount for your lease, which can change during renewals. You also may be responsible for the utility bills, which could be part of your rent or separate, depending on your rental agreement. Many people also choose to get renters insurance; some leases even require it.  Whether you’ll pay more in your monthly housing payment as a renter or a homeowner depends on many factors, including market conditions, interest rates, and the size of your down payment. Knowing these factors before buying a home will help you understand if you can afford it.  Consider second home co-ownership with 2. Insurance  Homeowners often pay more than renters for insurance. The average cost for renters insurance is around Renters insurance can provide liability protection for at-fault incidents for things you don’t own, often including damages to the residence. It can also protect your belongings in case of flood, fire or theft. Some homeowners require adequate liability coverage to protect their homes in the event of a major incident.  Meanwhile, homeowners are generally required to obtain insurance to qualify for financing. Like renters insurance, homeowners insurance covers liability, such as people slipping in your home, and coverage for your belongings. Where it differs is that the coverage for the house itself must be broken down by type, such as coverage for other structures, coverage for wind and hail and coverage for the dwelling itself. This complexity makes homeowners coverage much more expensive. 3. Home equity Rent payments contribute solely to the landlord's income and do not provide renters with any property ownership stake or investment value, so tenants do not build equity. Instead, that equity goes to the rental property owner. In contrast, homeowners make mortgage payments, build equity in their property, and may benefit from property value appreciation. This makes buying a primary home a long-term investment with potential financial gains. Additionally, home equity can allow homeowners to access funds through home equity loans and lines of credit.  4. Property taxes Homeowners are required to pay annual property taxes, while renters do not. Property taxes vary by state and county, with Although homeowners must pay annual property taxes and mortgage interest, tax deductions can lead to significant tax savings. Even when selling a home, homeowners may qualify for capital gains tax exclusions that further reduce their tax burden. Homeowners can also take advantage of different tax breaks for Tenants who rent typically do not receive direct tax benefits related to their rental payments, and property taxes may be fixed into their lease agreements. You may qualify for deductions if you use the space for something tax-deductible, such as working from home. 5. Lifestyle Renting offers greater flexibility and mobility, making it an appealing choice for individuals who prioritize a transient lifestyle. Renters can easily relocate for job opportunities or personal preferences without the burden of selling a property. Renting also eliminates the responsibility of property maintenance and repairs, providing a more carefree living experience.  On the other hand, buying a home suits those seeking stability and ownership. Ownership allows people to customize their living space and establish long-term relationships within their community. Although homeowners have more control over their living environment, they are responsible for all property maintenance and upkeep. The cost of buying vs. renting a home [$300,000 home example] Renting generally involves lower upfront costs, as renters typically only pay a security deposit and first month's rent, while homebuyers are responsible for repairs. However, renting can be more expensive than buying in the long term, as homeowners build equity, benefit from potential property and receive more tax benefits. Here is a breakdown of the cost expectations of renting vs. buying a $300,000 home. Items like taxes may vary depending on your state or county. Simply put, renting is better if you prefer convenience, while buying is better if you prefer stability. So, if uncertainty and commitment are the only things holding you back, wouldn’t it be great if you could try it out before committing to a 30-year mortgage?  Thankfully, you can do that with

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 second home down payment and the potential higher interest rates that come with second mortgages. Ensure that this added debt won't negatively impact your primary financial responsibilities, such as your emergency fund and retirement savings. If additional debt strains your financial resources, it may not be quite the right time to buy. Taking on a second mortgage without the capacity to do so could lead to financial instability and long-term financial hardship, making it hard to relax and enjoy that 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

Join us for a behind-the-scenes look at what it’s really like to buy a Pacaso. Whether you’re just starting to explore co-ownership or already considering a home, this session is designed to give you clarity and confidence in the process. You’ll hear directly from our expert team — Ramon, Phoebe, and Lana — as they walk through every step of the seamless Pacaso ownership journey. From offer acceptance to move-in day, you'll learn how Pacaso handles all the details, including legal paperwork and personalized support, so you can focus on the joy of owning a second home. We’ll also cover what happens after closing, including our white-glove services and long-term management, plus answer frequently asked questions.

Say you've been planning the ultimate luxury vacation for a couple of years. You've got your list of dream destinations, top-notch resorts, and must-try experiences all lined up. But just as you're about to book, you discover some places have become overcrowded, while hidden gems have emerged elsewhere. Suddenly, your itinerary needs a revamp.  The luxury real estate market isn't much different. Economic shifts, evolving consumer tastes, and technological innovations continually reshape the landscape. In this guide, we’ll walk you through the top luxury real estate trends of 2025 so you can create a strategy that leads to 1. Smaller homes are becoming more luxurious Smaller homes continue to gain popularity among luxury buyers in 2025, and it's not just about saving money — it's a lifestyle choice. Recent data from the Affluent buyers are prioritizing convenience and financial flexibility, seeking homes that require less maintenance without sacrificing those high-end finishes we all love. Many buyers are choosing smaller homes because they're easier to purchase with cash, avoiding mortgage debt and those pesky rising interest rates. Why smaller luxury homes work: 2. The luxury market is stabilizing as inventory rises and price growth cools After years of soaring prices and fierce competition, the luxury housing market is shifting toward a more balanced state in 2025. The extreme ups and downs we've seen in previous years are leveling off as more high-end properties become available. This increase in supply is giving buyers more options and cooling down the frenzy that once drove those intense bidding wars. In some areas, luxury home prices are even seeing slight declines — a welcome change for buyers. While demand for luxury properties isn't disappearing, the days of skyrocketing prices and bare-bones inventory seem to be behind us, pointing to more stable luxury real estate trends in the coming years. 3. The luxury real estate market is becoming more globalized Market trends in “Texas is seeing steady growth, especially in cities that offer business opportunities without the tax burdens of other states. At the same time, international luxury markets are evolving. A study by 4. Luxury price growth is slowing while select markets experience corrections Luxury home prices in the U.S. continue to rise, but the pace of growth is slowing. According to Redfin, the Some markets are still seeing impressive gains, such as: However, signs of correction are emerging in select cities, like:  This suggests a potential shift in the New listings in the luxury market have surged in several key areas, giving buyers more choices and taking the pressure off prices. Providence, RI (31.5%), Miami (28.1%) and Tampa, FL (27.6%) saw the biggest jumps in new luxury home listings.  Meanwhile, the pace of sales varies dramatically — on average, luxury homes in Seattle sold in just six days, while Miami's high-end properties lingered for 114 days. These luxury real estate market trends highlight how the high-end housing sector is evolving, with some cities still seeing rapid growth while others are cooling down or making slight adjustments. 5. Cash is king, but financing is gaining traction in the luxury market While cash has traditionally dominated luxury real estate transactions, financing is making a comeback as interest rates begin to descend.  Though interest rates remain higher than pre-pandemic levels, their gradual decline opens financing options for luxury buyers. Many wealthy individuals still prefer cash purchases to avoid borrowing costs, but others are dipping their toes back into the mortgage market as rates become more attractive. Beyond traditional mortgages, savvy buyers are getting creative with margin loans, stock portfolio loans and private banking credit lines to fund their purchases. Cash remains a powerful advantage in competitive markets where bidding wars still happen.  However, as borrowing costs continue to fall, experts predict more luxury buyers will incorporate financing into their strategies. This shift reflects a broader normalization in the 6. Luxury buyers are adapting to evolving interest rates With This hesitation creates a more balanced market, forcing sellers to adjust their expectations. As overpriced homes sit longer, buyers are holding out for better deals, potentially leading to win-win negotiations for both parties. Despite the challenging economic environment, cash-rich buyers remain active in the Dahlia Fox, a real estate agent with The luxury real estate market in 2025 is likely to see more price adjustments as everyone adapts to the new financial reality. 7. Luxury second-home market and co-ownership is booming Even with economic challenges, the demand for luxury Real estate expert and Platforms like Pacaso, where families can purchase fractional ownership of a luxury home with maintenance handled, are gaining popularity. This trend in the luxury home market makes owning that 8. Investors are expanding their portfolios with high-end real estate Despite economic shifts, luxury real estate remains a stable and attractive asset. Investors are particularly eyeing Thomas Franklin, Founder and CEO at This shift toward managed asset pools lets investors spread their capital across multiple luxury properties, enjoying both flexibility and access to global markets while minimizing risk — a trend that's reshaping luxury real estate market trends in 2025. 9. Smart homes are becoming essential rather than a luxury feature According to Rachel Stringer, "Technology is built into every part of high-end real estate now. Homes that aren't equipped with automation, security and seamless integration of smart features feel outdated before they even hit the market."  With AI, IoT and big data working together, these smart systems are completely transforming how luxury homes operate, delivering next-level comfort and efficiency that today's discerning buyers demand. These luxury home trends are rapidly becoming the new standard rather than exceptional features. 10. Luxury buyers are prioritizing sustainability Sustainability is becoming a top priority for luxury buyers in 2025, with a growing emphasis on energy efficiency, eco-friendly materials and green spaces. As climate awareness rises and government regulations tighten, we're seeing a notable shift toward sustainable Rachel Stringer puts it perfectly: "The conversation about sustainability has also shifted. It's not about marketing a home as eco-friendly for show — it's about efficiency. Solar panels, energy storage, water recycling and passive design are becoming standard because they lower long-term costs and increase self-sufficiency."  Investing in green properties with 11. Luxury home buyers are prioritizing resiliency features Luxury home buyers are increasingly looking for properties that can weather natural disasters — literally. In regions prone to hurricanes, wildfires and flooding — like California, New Orleans and Florida — buyers want more than just beautiful homes. They want properties with features that ensure their investments remain safe and functional no matter what Mother Nature throws their way. These features include: Nathan Mathews, CEO of 12. Gen-X and Millennials will influence the market Millennials and Gen-Xers are reshaping the luxury real estate market. Affluent millennials gravitate toward homes featuring cutting-edge technology, sustainability and energy efficiency, viewing real estate as a lifestyle statement and a financial investment. Their preference for urban properties or resort homes with income potential drives demand for smart, sustainable luxury properties across the market. Gen X buyers, now in their prime earning years, are focusing on long-term asset diversification. With wealth inherited from baby boomers, they're seeking homes with premium amenities, enduring value and stability for future generations. As  Rachel Stringer notes, "Millennials and Gen X prioritize functionality, privacy and convenience. They want spaces designed for how they actually live — integrated wellness features, easy-to-maintain outdoor areas and turnkey properties." These generations are significantly influencing luxury real estate trends with their distinct preferences and priorities. Luxury real estate made easy with Pacaso The luxury real estate market is always evolving, and 2025 promises to bring new opportunities and challenges for prospective buyers. Whether you're looking for a primary residence or a To stay ahead of the latest luxury real estate market trends and discover exclusive high-end listings, Pacaso can help you cross the finish line on your vacation home ownership journey (or even help you figure out how to

If you’re looking for a second home that offers luxury, convenience and flexibility, you might be tempted by the idea of a A But before you sign up for a timeshare contract, you should consider a better alternative: Pacaso. We enable you to co-own a stunning second home with a small group of like-minded people.  Unlike a What is Pacaso? The Pacaso second home ownership model is a revolutionary way to buy, own and sell a luxury second home in a world-class vacation destination. We simplify the Pacaso owners enjoy all the benefits of second home ownership without the hassle of maintenance, scheduling or resale. All of our homes are professionally designed, fully furnished and impeccably maintained, offering a consistent and luxurious experience every time.  Buyers can also take advantage of competitive What is a timeshare? A The time increments may be fixed or flexible, and may be based on weeks, months or a point system. Timeshares are often sold through high-pressure sales meetings that claim to offer low prices and long-term benefits.  Timeshare companies can provide you with a predictable vacation setting in a professionally managed resort. Still, they have some drawbacks, such as lack of flexibility, difficulty in reselling and risk of scams. Pacaso vs. timeshare: 5 key differences If you are looking for a way to own a luxury vacation home in a desirable location, you might be wondering about the differences between a Both options allow you to share the cost and use of a vacation property with others, but there are some key distinctions that make Pacaso a better alternative for many buyers. Here are five reasons to consider LLC co-ownership of a second home.  1. Each Pacaso listing is a one-of-a-kind second home Not just any home can be a Pacaso home. We seek out the best homes in the best locations — each one is different, and all have plenty of wow factor. Then our professional interior designers A Pacaso home is a luxurious home away from home. A timeshare is almost always a unit at a hotel or condo complex. Think cookie-cutter floor plans and typical hotel-style furniture.  2. A small group of co-owners enjoy the home Because we limit the number of shares per home to eight, you and (at most) seven other owners will have access to the home. (Only one owner will occupy the home at a time, of course.)  Plus, Pacaso homes are reserved for the exclusive use of owners and their guests — rentals aren’t permitted. We vet potential owners who agree to a common sense code of conduct to ensure they will treat the home as their own — because it is! Plus, you won’t feel like you’re “sharing” your home. We conduct a thorough inspection and cleaning after each stay so your home is pristine when you arrive.   A 3. You own real estate, not time One of the most significant differences between a timeshare vs. vacation home is what you actually own. With Pacaso, your share is real property, not simply a block of time — you own a real estate asset. And because it’s a real estate asset, its value will move with the market, meaning any realized equity is yours.  When you purchase a timeshare, you typically own the right to use the property for a period of time, not the property itself. That’s why you can’t usually get a conventional home loan to purchase a timeshare — there’s no “home” as collateral, only time.  Financing is offered through the timeshare company, often at a high interest rate, and some buyers secure funds through a personal loan or home equity loan. Since even the best timeshare property is not a real estate asset, you are likely to see the value depreciate, much like a new car begins to lose value once it’s driven off the lot. 4. You can use your home year-round Pacaso’s When you purchase a timeshare, you’re often locked into a fixed week, year after year. You may have a “floating week” option, but your choices are still restricted to a range of dates. With either option, you can only check in on certain days, and you typically must book a full week.  There are exchanges and point-based systems that allow you to choose different resorts, but you’ll often pay extra for more desirable locations, and availability can be limited. If you have a fixed-week schedule, you may never get a particular holiday week if another owner already locked it in.  5. The resale process is streamlined We think you’ll love your Because our homes are thoughtfully selected and located in some of the most desirable second home markets, we’ve experienced strong buyer demand for Pacaso shares.  On the other hand, selling a timeshare can be extremely difficult. There’s an entire industry of timeshare exit companies that will help you offload your timeshare for a fee — and, unfortunately, many of them have been known to take advantage of sellers.  Pick the right choice for you Keeping your second home goals in mind while comparing Pacaso vs. timeshare opportunities can help you find exactly what you’re looking for. If you’re specifically looking for a luxury getaway and a place to make memories together with your family, browse through our

The Rise of Sustainable Luxury in Real Estate In the world of luxury real estate, a new trend is emerging that marries opulence with environmental responsibility. High-net-worth individuals are increasingly seeking second homes that not only offer lavish amenities but also embrace sustainable practices. From the rolling Eco-Friendly Innovations in Sonoma Sonoma County is a beacon of sustainable luxury, where eco-conscious homes blend seamlessly with the natural beauty of Discover the sustainable charm of Sustainable Living in Santa Barbara & Montecito In Santa Barbara and Montecito, luxury homes are designed to harmonize with the coastal environment. These properties often feature solar panels, smart home technology, and native landscaping. The integration of sustainable materials and energy-efficient systems not only reduces environmental impact but also enhances the home's aesthetic appeal. Eco-Conscious Design in Jackson Hole Jackson Hole is a leader in eco-friendly architecture, where homes are crafted to blend with the breathtaking natural surroundings. Sustainable features such as geothermal heating, reclaimed wood, and rainwater harvesting are common. These innovations not only promote environmental stewardship but also offer long-term cost savings. Experience the serene beauty of Urban Sustainability in London London's luxury real estate market is embracing sustainability with features like solar panels, Explore the elegance of the Eco-Luxury in Bend, Oregon Bend, Oregon, is a haven for eco-luxury living, where homes are designed to minimize environmental impact while maximizing comfort. Features like high-performance insulation, solar panels, and water-saving fixtures are standard in these properties, reflecting a commitment to sustainability. Immerse yourself in the natural beauty of The Role of Co-Ownership in Sustainable Living Co-ownership models, like those offered by Pacaso, are making sustainable luxury more accessible. By sharing ownership, multiple parties can enjoy the benefits of a high-end, eco-friendly home while reducing the overall environmental footprint. This innovative approach aligns with the growing demand for sustainable living solutions. Conclusion: Embrace Sustainable Luxury Sustainable luxury homes are not just a trend; they represent a fundamental shift in how premium real estate is defined. By integrating eco-friendly features and innovative co-ownership models, these properties offer a unique blend of opulence and environmental responsibility. Explore the possibilities with Pacaso and discover how you can own a piece of sustainable luxury in top destinations like

The good news is that if you 1. Savings and investment account Using your personal bank account to fund your second home down payment is about as straightforward as it gets. The money is easily accessible and will only earn minimal interest if left in the account. Putting these funds to work may be smarter rather than taking out a larger loan for a 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

Coordinating Your pet deserves luxury on vacation, and so do you. Selecting the right destination can provide you and your pet with the carefree escape you’re hoping for — and maybe even introduce you to a location for a second home that's great for you and your pup. Browse these top pet-friendly vacation spots — listed in no particular order — to get ideas for your next trip. Ready, set, go fetch your next dog-friendly vacation destination! 1. Block Island, Rhode Island When it comes to dog-friendly vacations, Block Island is one destination you won’t want to miss. From scenic walks to water taxis, there's so much for you and your pup to enjoy together. Brenton Point State Park offers beautiful views of the bay, with kite fliers taking advantage of the gusty ocean winds. Have a picnic at Grab a bite to eat at 2 The City of Brotherly Love extends its hospitality to four-legged friends. Visit For a break from the concrete jungle, head to the 3 This Northeast pet friendly vacation spot has beaches, brewskies and bogs to entertain you and your dog. Surfside, Brant Point and Cisco Beaches all provide sandy ocean fun. Take a ride on the When it’s time to rehydrate and replenish your calories, head to Easy Street Cantina or the Sandbar at Jetties Beach for fresh food and refreshing drinks. In terms of dog vacations, this one is hard to top.  4. Jim Thorpe, Pennsylvania What may at first seem like a sleepy town in the Poconos is a must-see place to go with your dog. Fido is welcome on the vintage 5. Long Island, New York The largest island in the country offers pet-friendly beaches, hiking trails and more. Take your dog walks up a notch by strolling around Long Island has plenty of dog-friendly breweries, and there’s even a tour that takes you to all of the best neighborhood taprooms. 6. Lake Placid, New York There’s so much to experience in Lake Placid. Enjoy a convenient stay at the pet-friendly Town House Lodge, just a stone's throw away from the lake and a short walk from Main Street. Rent a boat from The 7. Stowe, Vermont Stowe has no shortage of pet-friendly vacation ideas. The 8. Bar Harbor, Maine If you and your furry friend share a love for the ocean, the seaside town of Bar Harbor has everything you need. This quiet town of 5,000 provides nature cruises for leashed pets, so you both can try spotting a variety of sea creatures, like porpoises and seals.  Take a picturesque walk around dog-friendly 9. Chicago, Illinois Bring your pet to this lakeside city for fun on and off the water. Multiple Montrose Dog Beach allows your pet to dip their paws in the lake and even provides free waste bags and a dog wash area. The pet-friendly 10. Madison, Wisconsin Sitting on an isthmus between two lakes, Madison has a whole lot of green space perfect for traveling dogs, including For two-legged visitors, The BarleyPop Tap and Shop provides another dog-friendly taproom with an extensive craft beer selection. If spirits are more your thing, the 11. Milwaukee, Wisconsin Stroll Milwaukee’s winding Treat your good dog to a spa day at 12. Grand Haven, Michigan This cozy western Michigan town offers plenty of fun for you and your pup while avoiding the overwhelming crowds of some better-known dog-friendly getaways. Take your time as you stroll down the Rent your own pontoon for a relaxing cruise or a water skiing excursion. Then step back into a time capsule at 13. Cleveland, Ohio This Lake Erie city blends freshwater fun with urban attractions. The downtown dog park offers 3,500 square feet of off-leash play space. The Then head to the 14. Indianapolis, Indiana This dog-friendly getaway blends city entertainment with natural attractions. The Enjoy the Downtown Canal Walk’s three-mile loop, or rent a pedal boat for a unique view of the city. Treat your pup to a movie at the 15. St. Augustine, Florida St. Augustine, the oldest continuously inhabited city in the U.S., is brimming with history for you and your pet to experience together. Ponce de Leon’s Fountain of Youth Archaeological Park includes a planetarium, Timucua Native American village and an observation deck. Wild peacocks roam the park, so be sure to keep your dog leashed.  In town, you can take your dog on a wine-tasting tour in a horse-drawn carriage or ride on 16. Key West, Florida Your leashed dog can stay by your side as you tour the local aquarium and witness shark feeding and alligator exhibits. You won’t want to miss your chance to dine on fresh seafood like fish tacos at 17. Asheville, North Carolina If the Southeast is more your style, grab the leash and head to Asheville, North Carolina. Take a stroll through Asheville has trolley tours for dogs up to 25 pounds, or you can scratch nature’s itch with a walk through 18. Charleston, South Carolina Fans of the macabre won’t want to miss the city’s 19. Hilton Head, South Carolina You can stick to living on island time at pet-friendly The 20. Shenandoah Valley, Virginia Virginia may be for lovers, but it’s also great for your fur baby. Shenandoah Valley has dog-friendly wineries, nature trails and other activities.  The 21. Birmingham, Alabama Get a taste of Southern comfort food at Crazy Cajuns’ Boiling Pot, the punk rock-friendly Black Market Bar and Grill or Back Forty Beer Company.  22. Austin, Texas Austin is one of the best pet-friendly vacations in the United States! Prepare for sensory overload at the When you need a little extra energy to make it through the day, or maybe just to burn some of your pet’s energy, head to the 23. Sedona, Arizona 24. Albuquerque, New Mexico This Southwest city is well-known for its delicious food and lively festivals, but its reputation as a pet-friendly destination is also noteworthy. Your leashed dog can join you on an outdoor adventure along the La Luz Trail, much of If you need to give your paws a break, hitch a ride on the open-air 25. San Francisco, California San Francisco makes our list of best pet-friendly vacation spots thanks to its gorgeous scenery and dog-friendly accessibility. Your dog can splash in salt water at Golden Gate Park’s off-leash section is a viable alternative for dogs wanting to keep sand out of their fur. For an added activity, try the modern treasure hunt known as geocaching, which is great for dogs and children alike.  26. South Lake Tahoe, California Bring your dog with you as you try your hand at sport fishing, kayaking or paddleboarding. Lake Tahoe’s dog-friendly beaches also provide the option for a restful day soaking up the sun. Stop at the 27. Huntington Beach, California Huntington Beach — aka Surf City, with its 10 miles of coastline — is an evergreen pet-friendly vacation destination, thanks to its sunny After a day of frolicking on the beach, try some fresh seafood at 28. San Diego, California Make your dog’s ocean dreams a reality by taking a pet-friendly vacation to For a more sure-footed activity, spend the afternoon at the 29. Napa, California Stock up on necessities or treats for you and your dog at the 30. Colorado Springs, Colorado Get away from big-city vibes and get back into nature in Colorado Springs. The impressively named For the less adventurous, Colorado Springs has plenty of places to go with a dog. 31. Kanab, Utah You have to see Kanab to believe it. Known colloquially as “Little Hollywood,” dozens of movies and television series are filmed in and around the area’s national parks due to the striking scenery. Your dog can join you as you walk remote trails, or you can both jump in a 4x4 for a guided desert safari. Be sure to stop by the 32. Boise, Idaho If you and your hound are tired of being confined indoors, Boise is a perfect pet-friendly escape. Tree-lined paths link the Winstead Park offers designated off-leash hours throughout its 11 acres of green space. The Spacebar Arcade lets you drink and game with your dog by your side. And your pup is welcome at the 33. Seattle, Washington Beat the heat with a pet-friendly vacation to the Pacific Northwest. Visit the city’s largest downtown green space at Along the shores of Lake Washington, you’ll find the 230-acre 34. Bend, Oregon The city of The Riverbend Beach Dog Park is a fenced oasis for your furry friend to socialize in and out of the water. Drink in Bend’s craft beer scene by walking the Taking a vacation with man's best friend requires some extra planning, but with some careful preparation — it'll give both you and your pup something to wag about.  Before you hit the road, make sure your pet is primed for the journey. Pack essentials like food, water, bowls, a leash, and any necessary medications to set your pack up for success. Ensure your pet's identification and vaccinations are current, and consider a microchip for extra safety. If traveling by car, secure your pet with a harness or carrier, and plan for frequent breaks for potty stops and exercise. After all, a tired pup is a happy pup! When selecting a dog-gone great destination, consider the climate and specific activities you and your pet will enjoy. Research pet-friendly parks, Sites like BringFido, Petswelcome, and GoPetFriendly specialize in pet-friendly accommodations. They have filters to narrow your search based on pet size, breed, and any extra fees. For example, on BringFido, you can filter for hotels with no size restrictions, which is perfect if you have, say, a Great Dane. Sites like Now that you've planned your destination and travel, it's time to nail down an itinerary that will Here are some of the best types of activities to share with your dog on vacation:  The great outdoors is almost always a safe bet for dog-friendly vacations. Hike scenic Who says pups can't be cultured? Many experiences, such as museums, zoos or historical tours, are pet-friendly. For instance, in Charleston, South Carolina, you can take a pet-friendly After a day of exploring, treat yourself and your furry friend to some delicious eats, a local beverage, or some Remember to always confirm pet policies beforehand to ensure an enjoyable experience for you and your pet. Tips for a pet-friendly vacation The key to a successful pet friendly vacation is preparation. Keep these tips in mind before hitting the road or taking to the air. 1. Consider the mode of transportation How you’ll get to your destination depends on how far away from home you’re going, of course, but you’ll also want to consider your dog’s comfort. Some dogs are perfectly fine flying on an airplane, but it can be traumatic for others. Some dogs love a road trip, while others don’t like being stuck in a car for a long time. Consider your dog’s personality before plotting your course.  2. Test your pet’s travel tolerance Before you go on a vacation with pets, see how they respond to being cooped up or in a car for long periods. You may discover they get motion sickness or need more frequent breaks than you were prepared for. 3. Double-check dog-friendly accommodations Before you leave, it’s smart to verify that you can bring your furry friend along to your hotel or vacation rental. Businesses can change their policies at any time and you don’t want to be left without a place to stay. The best dog-friendly hotels go out of their way to welcome four-legged guests, with special amenities like treats and dog beds.  Regardless of where you stay, it’s important to note even when dogs are allowed, many hotels won’t allow you to leave your pet unattended in a hotel room while you’re out and about.  4. Make a dog-friendly vacation itinerary Think through the places you want to visit on your vacation. For example, dogs are allowed in most national parks, but you’ll need to keep them on a leash and on the trail at all times. In town, look for pet-friendly restaurants with outdoor dining options. 5. Pad your travel schedule Even a well-trained dog can act out of character in new or unfamiliar environments. Allow for extra time for your four-legged friend to get acclimated so you don’t miss out on sought-after activities or reservations.  6. Update your pet’s identification and vaccinations Make sure their collar or chip has your current contact information. This way if you get separated while on vacation, they can be identified and reunited with you. On top of that, doublecheck that all of your pet’s vaccinations are up to date. Many businesses, including 7. Bring extra supplies Pack more waste bags, medications and other necessities than you think you’ll need, just in case.  Don’t forget to pack food, a water bowl and a few items to help your pet feel comfortable, like a portable dog bed and a few of their favorite toys and treats.  Buy your own dog-friendly vacation home Like most humans, most pets enjoy a sense of familiarity and routine. Instead of staying in a new hotel in a new city every time you travel, consider setting down roots in your (and Fido’s!) favorite dog-friendly vacation destination. The best dog vacation is one your pup will enjoy every time.  As a second home owner, you can enjoy all the comforts of home while venturing out together in search of local dog-friendly parks, dog-friendly hiking trails and maybe even a dog-friendly beach.  It should come as no surprise that man’s best friend can also make a great companion on your travels, but pet-friendly vacations require a special type of planning to make them enjoyable. Use the destinations on Imagine having a second home in one of these pet-friendly destinations. Browse