If you rent or lease the property out it will be an investment property as you will be producing income from it.
If you use it as a second home/vacation home it will not be considered an investment property.
Best of Luck to You,
Kawain Payne, Realtor
Its a best time to buy here in California and one of the best part of California, here in Orange County. Prices are great and rates are historicaly low. This will not last for ever Kristie, O.C will go back up again. So I think its a wise choice.
It would be an investment property if you plan on renting/ leasing it to a tenant.
If you plan on using it as a vacation home, then it would not be considered an investment property but a second home.
I reside very close to the 92841 Zip code and have a vast knowledge of the area. If you like, I would be happy to email you listings to review so you can get a solid idea of what is available. (NO Obligation)
You can contact me at :
Kawain Payne, Realtor
92841 zip code is where my office located. As you already know, the 92841 area should be around less than 2 miles from Disneyland, Knott Berry Farm. So, there is a 50/50 chance that some lenders will accept it as a vacation home. Since you are a first time home buyer, I don't think any lender would accept it as 2nd home.
A main draw back for investment property is higher interest rate (about 0.25 higher). However, a good mortgage broker could help you find a good lender with good rates to offset that difference.
Feel free to let me know if you have any other questions.
Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
Happy funding, Rudi
There are a couple of other options you may want to factor into your thoughts. You can purchas a home with an accessory dwelling unit aka "ADU". This can be a good way to go for many reasons. When you do visit your folks you could have your own place to live and both your folks and you would maintain your privacy.
Additionally, you'd be planning ahead in the event your folks should get to a point where they might need some form of assisted living arrangements. This is becoming very common in the San Diego area and the County and most cities are very much in favor of this and in most cases encourage it.
Another thing you may want to consider is a Manufactured Home in a senior comunity. This too is a very popular way for senior folks to enjoy their golden years. Most in not all senior manufactured home developments have vey formidable recreation facilities and offer an array of amminities and services ie. pool, jacuzzi, sauna, work out facilities, bike and walking trails, club house facilities, organizied activities and gatherings, etc.
There are many very upscale developments like this throughout San Diego County. You can purchase a home in a gated rent/lease park or purchase one in a resident owned community where you will acutally own the real estate. If you do choose a resident owned community your parents could qualify for an FHA guaranteed reverse mortgage thereby allowing you to revisit your invstment capital and have enough money to live comfortably on.
In any event we would be happy to work with you in any area you're interested in. Once again if you read my former comment you know that we can help you purchase, remodel, rebuild or add a very nice "ADU" on your property be it Factory Built or Site Built.
We are also a licensed Manuffactured Home Dealer, Manufactured and General Contractor and Developer and we have been working in Manufactured Home Developments statewide for over 25 years. Please feel free to isit our websites and by all meand do not hesitate to call with any questions. 760 815-6977
We are your one stop, turn key solution to any real estate endeavor you with to peruse. We provide architectural, engineering, landscape and interior design services through out the entire property acquisition experience. We even provide transportation to and from any public transportation venue of our out of state/country clientele.
Please take a few moments to peruse our websites and feel free to contact us anytime.
http://www.chadofalltrades.com; Chad Arendsen, Principle, chad@chad of alltrades.com 760 Property Developmet
http://www.chadofalltrades.com; Chad Arendsen, Principle; email@example.com; 760 415-5156 us
http://www.intimatelivinginteriors.com/projects/feeleyreside Kari Arendsen; firstname.lastname@example.org 760-4732791 Intimate Living Interiors; Interior designer
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firstname.lastname@example.org: Real Estate Broker & General Contractor 760 815-6977
No it does not consider the Investment. As far as the Lending part is concern, it would consider the second home and you can get the same interest rate and other conditions as your owner occupied home. I am a Mortgage and Real Estate Broker in Southern California for over 15 years, I can help you on both ends. Please call me at 949-510-1955 for more information.
If you would had exclusive control & access to it at all times and would not be renting it out on a permanent basis then it could be considered as a second home. If you will be buying a home with the intention of making it an income producing property and/or do not intend to occupy it at all then it would be considered a non-owner occupied/investment/rental property (all 3 terms are used for the same occupancy type). Some lenders require a second home to be in a resort/vacation area - but not all. You typically will be looking at a 10% down payment on a second home, 20-25% down payment on an investment property. Fannie Mae HomePath financing permits you to buy an investment property with as little as 10% down though (properties only at http://www.homepath.com though).
Sometimes it depends where you are looking in California to help justify the purchase as a second home. If the scenario makes sense, such as family close by, or living in a vibrant area such as LA or San Francisco adjacent, a lender can view this as a second home. If you can qualify as a second home, you could go 20% down payment versus the 25% required on an investment property. If you wanted MI (mortgage insurance) you could go to 15% down payment on loans that are less than or equal to $417,000.
First Capital Mortgage
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