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If you're planning to purchase a vacation home, there are various ways to finance your purchase. Here are some things to consider. Consult experts in vacation-home financing Before making your purchase, consult with a financial adviser and mortgage lender with expertise in financ- ing vacation homes. Vacation-home buyers are in many cases high-net-worth individuals with complex finan- cial situations, so they should check with an accoun- tant or other financial adviser to ensure that they are structuring the deal the best way. Pay cash If you have the funds available, pay- ing cash is a quick and easy way to finance a vacation home. It also gives buyers a competitive edge in many cases because there's no mortgage contingency and, hence, no added risk to the seller that the deal will fall through in the 11th hour. And, if you later decide to renovate your new vacation home and want to use a Heloc to pay for those costs, your interest would be deductible as long as the Heloc is secured by the vaca- tion home, and total mortgage indebt- edness on the vacation and primary homes doesn't exceed $750,000. Mortgage the vacation home Many vacation-home buyers are ap- plying for first mortgages to finance their purchases. Shop around to find a mortgage deal where there is no interest-rate difference betweeen a mortgage on a primary or vacation home, as long as the vacation home isn't rented out. Keep in mind though that the underwriting guidelines—the down payment required, loan-to-val- ue ratio and credit score—are tougher for vacation homes. For example, one loan program re- quires a down payment of at least 10% on a jumbo loan securing a pri- mary residence, however a borrower would needs a minimum of 15% for a vacation home.