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  • Writer's pictureMike Hidlebaugh

Mortgages for Cabins

Updated: May 12, 2021

Have you always dreamt of having a cabin at the lake for your family to escape to on weekends or for the summer? It might be more obtainable than you think! Vacation homes or cabins are broken down into two distinct groups based on the characteristics and location of the cabin. The two groupings are commonly referred to as Vacation A and Vacation B properties.

Vacation A Properties

You are able to purchase a Vacation A property with as little as 5% down. Down payment can come from traditional down payment sources. In order to qualify as a Vacation A property, the cabin must be limited to one unit and you or a family member must live in it all or part of the time. The cabin must be four seasons and you must be able to access it year-round.

The cabin must have at minimum a three-piece bathroom, a kitchen, a bedroom, and a common area and the water must be potable. It must have a permanent heat source and be in what is considered a marketable location and have an estimated remaining economic life of minimum 25 years.

Vacation B Properties

You are able to purchase a Vacation B property with as little as 10% down. Down payment must come from your own resources. Vacation B properties do not require a permanent heat source and the foundation may be floating or on blocks. Seasonal road use is acceptable. There must be running water, but it need not be potable, and they can be seasonal cabins.

If you are looking at purchasing a cabin or vacation home, get in touch with your Mortgage Associate or Broker. As you can see above there are many variables when it comes to purchasing a vacation property or cabin.

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