There are many ways people finance second home properties.
First and most popular is cash. With the declining dollar, many retirees are using cash on hand to pay for their beach homes. With the real estate market showing signs of a positive turn around in Ocean City, more people are buying in this discounted pricing era than in the past 3 years.
The second most popular vehicle for purchasing a vacation property is using the equity from their primary residence. With interest rates on home equity lines of credit so low, who would pass up an opportunity like this to get money so cheap and start enjoying a relaxing lifestyle at the beach?
Third is straight financing from a bank. Here are three banks that lend in the Sundowner Park. Please call them for their rates and terms.
Key One Mortgage, Inc.
Phone: (800) 253-8018
(OFFERS 10% DOWN FINANCING)
Bank of Ocean City
122nd Street Branch
12109 Coastal Highway
142nd Street Branch
14200 Coastal Highway
The last financial tool that is becoming more and more popular is borrowing against your 401K. You can redirect your funds in your IRA or 401K for investment real estate if you choose to rent out these homes. These houses should rent for between $1,200 - $1,500 a week in season, since they are brand new and so close to the beach.
Disclaimer: Please consult your financial advisor and tax accountant to see if this is best for you and your family. We are only citing this option as to what other people have done.