Dreaming of a ski-weekend place you can call your own near Winter Park? You are not alone. Many buyers fall in love with Fraser and Grand County, then hit a wall of questions about down payments, rates, condo rules, and whether rental income can help. This guide breaks the financing puzzle into clear steps so you can move forward with confidence. Let’s dive in.
Second home vs. investment
A second home is a place you plan to occupy in addition to your primary residence. You will use it seasonally and it is not primarily for generating rent. An investment property is purchased to produce rental income and you do not occupy it as your primary or second home.
This distinction matters because it changes your loan options, pricing, reserves, and how any rental income is treated. Conventional lenders commonly finance both, but second homes usually see better terms than investment loans. Some programs designed for primary residences do not apply to second homes. Because lenders set their own overlays, confirm the specifics with your mortgage professional early.
How much down payment
For most conventional second-home loans, you can expect 10 to 20 percent down, depending on your credit and the property. Many buyers qualify at 10 percent down on conforming loans with strong credit. For investment properties, down payments typically land between 15 and 25 percent. Multi-unit or riskier files can require 25 percent or more.
If your price point exceeds conforming limits, you may need a jumbo loan. In resort markets like Winter Park, jumbos often require 20 to 30 percent down, depending on the lender and your profile.
Want to run numbers with HOA dues and taxes included? Estimate monthly payments with Erin’s mortgage calculator and test both second-home and investment scenarios.
Rates, costs, and reserves
Second-home mortgages generally cost more than a primary home loan, and investment loans price higher than second homes. Lenders may also add loan-level price adjustments and require mortgage insurance if you put less than 20 percent down.
Reserves are liquid assets left after closing to cover future payments. Typical ranges vary by program:
- Second home: commonly 2 to 6 months of principal, interest, taxes, and insurance.
- Investment property: commonly 6 to 12 months.
- Jumbo loans: often 6 to 12 months or more, especially for second homes in resort areas.
Grand County properties can also carry higher insurance costs due to wildfire risk, heavy snow, and potential liability if you plan to rent. Budget for HOA dues and possible special assessments, since those affect affordability and underwriting.
Condos near Winter Park
Condos are popular in Fraser and Winter Park. They also bring project-level underwriting. Lenders review the building or HOA because the project’s health affects marketability and risk.
Key items lenders evaluate:
- Owner-occupancy ratios and investor concentration within the project.
- HOA budget strength, reserves, collection rates, and any special assessments.
- Master insurance coverage and deductible structure.
- Single-entity ownership exposure if one person or company owns many units.
- Amount of commercial space within the project.
In resort communities, short-term rentals are common and can add review complexity. Some projects with heavy vacation-rental activity need additional scrutiny, higher down payments, or a specific lender willing to complete a detailed review. Plan extra time for collecting HOA documents, as this step can add days or weeks to the process.
Practical tips:
- Ask for HOA documents early and review rental rules, owner-occupancy rates, financials, and insurance.
- If you need a government-backed loan, confirm project eligibility first. Many resort condos are financed with conventional loans and project reviews.
- If a project is not easily approvable, you may need more money down or a lender that offers a flexible project review.
Counting rental income
If you plan to rent your property when you are not using it, understand how lenders treat that income.
For investment properties, lenders often use documented rental income to help you qualify. They typically require tax returns that show rental income for two years, or a signed lease, and they usually apply a vacancy and expense factor. A common approach is to count about 75 percent of gross rent for qualifying, though the exact figure varies by lender and property type.
For second homes, lenders are more conservative. If you intend to use the home yourself and only rent part-time, many lenders will not count projected short-term rental income without a stable history. In most cases, you need two years of tax returns showing rental income or a long-term lease, and some lenders will instead require the property be classified as an investment if rental income is essential to qualify.
Local realities matter. In Grand County and the towns of Fraser and Winter Park, short-term rentals require registration and lodging tax compliance. HOA rules may restrict short-term rentals or set minimum stays, occupancy limits, and registration steps. Resort seasonality also affects occupancy and rates. Lenders consider these factors when evaluating rental income history and stability.
If qualifying with rent is important, prioritize properties with clear rental documentation, or consider lenders that offer products designed for short-term rentals. Always confirm documentation requirements early.
Timeline and preparation
Financing a second home in a resort area works best with a proactive timeline.
- Start pre-approval 60 to 90 days before you plan to make offers. Condo and HOA reviews, insurance quotes, and short-term rental compliance checks take time.
- Expect initial pre-qualification in 1 to 2 days if your documents are ready. Full pre-approval follows once the lender has reviewed your finances.
- After you are under contract, plan for 30 to 45 days for conventional underwriting. Condo reviews, jumbo financing, and appraisal scheduling can extend timelines.
- Build in extra time for inspections, winterization questions, utility setup, and HOA coordination, especially if you are out of the area.
Use Erin’s mortgage calculator to model payment ranges, HOA dues, taxes, and reserve needs so you can set a realistic budget before touring.
Quick buyer checklist
Use this as a simple roadmap for Fraser and Winter Park second-home searches:
Financing
- Decide whether you will treat the property as a second home or an investment. This changes your loan program, pricing, and documentation.
- Ask your lender about required down payment, reserves, and whether any rental income can be counted.
- If you plan to rent short-term, ask upfront about documentation needed and whether your lender allows short-term rental income.
Property and HOA
- Request HOA documents early, including budgets, reserve studies, insurance, and rental rules.
- Ask about owner-occupancy ratios, dues delinquency rates, and any pending special assessments.
Compliance and taxes
- Confirm local short-term rental licensing and lodging tax requirements in Grand County and the towns of Fraser or Winter Park if you plan to rent.
- Speak with a tax advisor about how rental income and expenses flow through your returns.
Insurance and operations
- Get quotes that reflect mountain risks like wildfire and heavy snow loads.
- If renting, line up a property manager or plan for cleaning, key exchange, guest support, and maintenance.
Common scenarios in Fraser
Here are typical paths buyers consider. Your lender’s rules may differ, so confirm specifics early.
Ski-weekend condo with occasional short-term rentals
- Loan type: often a conventional second home.
- Down payment: commonly 10 to 20 percent for conforming loans. Jumbo may require 20 to 30 percent.
- Reserves: plan for 2 to 6 months, possibly more for jumbos.
- Rental income: many lenders will not count projected short-term rent for a second home without a two-year history.
Townhome for personal use only
- Loan type: conventional second home.
- Down payment: commonly 10 to 20 percent.
- Reserves: commonly 2 to 6 months.
- Notes: focus on HOA stability, insurance, and winter readiness.
Condo strictly for rental income
- Loan type: conventional investment property.
- Down payment: typically 15 to 25 percent.
- Reserves: commonly 6 to 12 months, more if you own multiple properties.
- Rental income: lender may use a signed lease or prior tax returns, usually with a vacancy and expense adjustment.
Avoid common pitfalls
A few smart steps can save time and money:
- Clarify your occupancy plan. If rental income is essential to qualify, you may need investment financing instead of a second-home loan.
- Screen condo projects early. Projects with heavy short-term rentals or weak finances can slow or limit financing options.
- Budget for true carrying costs. Include HOA dues, special assessments, higher insurance, and reserves.
- Start documentation early. Get W-2s, tax returns, bank statements, and HOA documents in motion before you write an offer.
Work with a local guide
Buying in a resort market is different. From condo reviews to short-term rental rules and seasonal operations, you will benefit from a partner who knows the projects, the process, and the pace. If you are ready to explore Fraser and Winter Park options, reach out to Erin Life for clear guidance, smart preparation, and on-the-ground support. Start your search with Erin Life.
FAQs
What counts as a second home near Winter Park?
- A property you plan to occupy seasonally in addition to your primary residence, not primarily to generate rental income, generally qualifies as a second home.
How much down payment for a Fraser second home?
- Many buyers put 10 to 20 percent down on conventional second-home loans, while jumbo financing can require 20 to 30 percent.
Will lenders count Airbnb income in Grand County?
- For second homes, many lenders do not count projected short-term rental income without a two-year history; investment loans may use leases or tax returns.
What reserves do I need for a second home?
- Expect commonly 2 to 6 months of PITI for second homes, and 6 to 12 months for investment properties, with higher amounts often required on jumbo loans.
Why are condo projects reviewed in resort areas?
- Lenders evaluate HOA financial health, owner-occupancy ratios, insurance, and rental intensity because project risk affects loan eligibility and marketability.
