Are You Considering a Seasonal Home?
Are you dreaming of a peaceful getaway, like a lakefront retreat by the shores of Skaneateles Lake, a cabin in the Adirondacks, or spending your summers boating on the St. Lawrence? A seasonal home can be the perfect place to unwind and enjoy time with family.

This guide covers everything you need to know about seasonal home mortgages, from what lenders look for to why financing through a credit union like Northern Credit Union could be your best option.

What Is a Seasonal Home Mortgage?
A seasonal home mortgage is a loan that helps finance a property used for a personal getaway rather than a primary residence. Because seasonal homes are not occupied year-round, lenders categorize them differently than primary residences. This means loan terms, interest rates, and eligibility requirements may vary.

Key Considerations Before Buying a Seasonal Home.

• Insurance Costs – Seasonal homes often have higher insurance rates due to location risks, such as flooding, snow damage, or hurricanes. It’s important to research insurance requirements based on the home’s location before purchasing.
• Maintenance & Upkeep – If the home will be vacant for part of the year, factor in ongoing maintenance costs such as winterization, security systems, roof and plumbing upkeep, and seasonal property management services.
• Resale– Consider the home’s long-term value if you plan to sell in the future. Research local real estate trends to ensure you invest in an area with a strong demand for seasonal homes.
• Understand Your Debt-to-Income Ratio (DTI) – Lenders often review your debt-to-income ratio (DTI) to assess your financial health. DTI compares how much you owe each month to how much you earn. A lower DTI shows lenders you have enough income to cover your mortgage payments and other expenses comfortably.
• Credit Score- Lenders typically factor in credit scores when reviewing seasonal home mortgage applications. A higher score may help you qualify for better interest rates and loan terms. Tip: If you’re unsure about your credit score, Northern Credit Union offers free credit monitoring, available through online banking. This tool makes it easy to regularly review your credit, spot errors, and track changes over time—right from your phone or computer. Even better, it can help you work to improve your score!
• Down Payment- At Northern, because all our decisions are made locally, we customize seasonal home mortgage rates, terms and down payment amounts to suit your unique needs. Some lenders may require a larger down payment for seasonal home mortgages compared to primary residences. Many borrowers put down 10 to 20 percent, but the exact amount depends on the lender, your financial situation, and the specific property.

Working with a Credit Union is a Smart Choice.
Financing your seasonal home through a credit union, like Northern, can offer unique advantages compared to big banks, private and online lenders:

1. Member-First Approach – Unlike online lenders and big banks, Credit Union’s are not-for-profit and member-owned. This means our focus is on you, not shareholders. Profits are returned to our members in the form of lower interest rates, reduced fees, and better and more personalized service. Plus, online mortgage lenders often tack on hefty fees which can add up quickly.
2. Personalized Lending – Credit unions offer flexible terms and expert guidance to help borrowers navigate the mortgage process. Because all of Northern’s loan decisions are made locally, we can offer more flexible terms that are tailored to an individual’s unique needs.
3. Local Market Knowledge – Many credit unions, including Northern, specialize in seasonal home mortgages and understand the unique considerations of buying a second home.

At Northern Credit Union, we take these benefits even further by offering:

✔ Meet or Beat Rate Guarantee – Our Meet or Beat Guarantee means we’ll match or exceed competitive offers to ensure you get the best deal possible.

✔ Up to 90 Percent Financing – Unlike many lenders that require 20 percent down, we offer up to 90 percent financing to make your seasonal home more affordable and increase your buying power.

✔ No Private Mortgage Insurance (PMI) Options – Most lenders require PMI with less than 20% down, but Northern only requires 10% down to eliminate this extra cost to help keep your payments lower.

✔ Flexible Loan Terms – Choose loan terms that work for you, including fixed options, 30 years, 15 years, or 5/5 ARMs allowing you to balance affordability with faster loan payoff options and great rates.

✔ Fast Approval Process with the Power of a Cash Buyer – Compete with the Speed of Cash Buyers with our Quick Upfront Pre-Approval. You’ll stand out in a fast-paced market and compete with cash offers with our upfront underwriting process and get the Power of a Cash Buyer.* Financing with Northern gives you a competitive edge when housing inventory is low:

• Go beyond a “standard pre-approval” with our unique approach that utilizes state-of-the-art upfront underwriting to solidify your buying power based on a comprehensive review of your financial profile.
• This advanced method positions you favorably among financed offers, rivaling the appeal of cash buyers.
• With the Power of a Cash Buyer, you’ll be empowered to move swiftly, securing your dream home and living better sooner than you thought possible.

Are you ready to get started? Applying online is easy! Explore our Seasonal Home Mortgage options or speak with a home lender today at 315.777.8910 for expert guidance.