Picture yourself slipping through the gates of Fairway Lakes for a long weekend, coffee on the lanai, golf views in the distance. If you are ready to make that vision real, the financing details matter just as much as the floor plan. In this guide, you will learn which loans work for a true second home, how much down you may need, and the Florida costs that influence approval. Let’s dive in.
What counts as a second home
A second home is a one‑unit property you will occupy part of the year and control yourself. It must be suitable for year‑round use and cannot be a timeshare or under a mandatory management program. For lenders, that is different from a primary residence or an investment property with regular rental plans. You can review the official definition in the GSE guidance on second‑home occupancy.
Loan options that work in Fairway Lakes
Conventional loans are the most common path for second homes in Fairway Lakes. Depending on price and down payment, your loan may be conforming or jumbo. Conforming limits change annually, so ask your lender to confirm where your target price falls.
Portfolio loans from local banks and credit unions can help when a property or borrower profile needs flexibility. These products may allow different reserve, asset, or documentation approaches. Government programs like FHA or USDA are designed for primary residences, so they are not a typical fit for a vacation‑style second home.
How much down and what it takes to qualify
For a one‑unit second home with conventional financing, many lenders follow a maximum 90 percent loan‑to‑value guideline for purchases. That means a minimum of about 10 percent down, with stricter terms for cash‑out later or for jumbo loan sizes. You can see the agency matrix for second‑home LTV rules in Freddie Mac’s LTV guidance.
Most second‑home approvals also require verified cash reserves. Fannie Mae’s guide commonly calls for at least two months of PITIA (principal, interest, taxes, insurance and association dues) at closing, and more if you own other financed properties. Review the minimum reserve requirements to plan your assets and timing.
Pricing and PMI follow standard conventional rules. If your down payment is below 20 percent, expect private mortgage insurance until you reach the required equity. Strong credit, larger down payments, and adequate reserves can improve the rate and fee structure.
Florida and Viera factors that affect approval
Fairway Lakes sits within Viera, a master‑planned area with association oversight and golf‑adjacent homes. You can learn more about the community on the Fairway Lakes association page.
- Homeowners insurance. Florida premiums are materially higher than the national average, and Brevard County is no exception. Lenders include the projected premium in your payment, which affects debt‑to‑income ratios and reserves. Get estimates early and learn how Florida home insurance works with this statewide overview.
- Wind‑mitigation savings. Impact windows, roof straps, and other hardening features can reduce premiums. Florida’s My Safe Florida Home program has reopened with new funding, which can help some owners offset upgrade costs. See the latest on home‑hardening grants and discounts.
- Flood zones. Even inland neighborhoods can have mapped flood risk. If a home is in a Special Flood Hazard Area, your lender will require flood insurance, which increases monthly cost. Start with Brevard County’s flood zone resources for property‑level guidance.
- Property taxes and homestead. Florida’s homestead exemption and Save Our Homes benefits apply only to a primary residence, not to second homes. Plan your operating budget without these protections. Learn more about Florida homestead rules.
- HOA and CDD assessments. Viera communities often include master association dues and Community Development District (CDD) assessments. CDDs appear on the tax bill as non‑ad valorem charges and are included in lender qualifying. Review Viera’s CDD information and budget for HOA dues, special assessments, and routine maintenance.
Smart timeline for Fairway Lakes buyers
Use this step‑by‑step plan to move from browsing to clear‑to‑close with fewer surprises.
1) Confirm loan type and limits
- Speak with a lender experienced in Florida second homes and verify whether your price point is conforming or jumbo.
- Ask how they handle reserves, PMI, and any lender overlays for high‑value homes.
2) Build a realistic monthly number
- Include principal and interest, Brevard County taxes, HOA dues, any CDD assessments, homeowners insurance, and flood insurance if required.
- Add reserve targets based on your loan program’s month‑of‑PITIA requirement.
3) Get early insurance quotes
- Request homeowners and, if applicable, flood quotes for the address or nearby comparable properties.
- Ask about wind‑mitigation credits and roof age requirements.
4) Gather your documents
- Two years of tax returns, W‑2s or 1099s.
- Two months of bank and asset statements to prove funds and reserves.
- Recent pay stubs and identification. If you own other properties, include current mortgage statements.
5) Review HOA and CDD details
- Request HOA documents and any estoppel details to confirm fee amounts and frequency.
- Ask about any pending special assessments or planned capital projects.
6) Check flood status and inspection items
- Pull the flood zone information and plan for a wind‑mitigation inspection if needed for insurance.
- Discuss roof age, impact glass, shutters, and related features that influence insurability and premiums.
7) Finalize underwriting and insurance binder
- Provide the insurance binder naming your lender and complete any conditions quickly.
- Review the closing disclosure for escrow setup of taxes, insurance, HOA, and CDD items.
Renting your Fairway Lakes second home
Occasional and limited rental use can be compatible with second‑home financing if you still occupy the property part of the year and maintain control of it. If your plan looks like sustained or business‑style rental activity, lenders will classify the loan as an investment property with different terms. Review the GSE language on second‑home occupancy and talk with your lender before marketing the home for rent.
For tax planning, the IRS 14‑day rule is useful: if you rent a dwelling you also use as a home for fewer than 15 days in a year, that rental income is generally not taxable. For 15 days or more, reporting rules change. See IRS Publication 527 and consult your tax advisor.
Ready to align the right financing with the right home? Fairway Lakes offers gated privacy, golf‑adjacent views, and a low‑maintenance lifestyle. If you want a tailored plan, trusted local insight, and concierge‑level guidance from first tour to closing, connect with Anthony Romero to get started.
FAQs
What is the minimum down payment for a Fairway Lakes second home?
- Conventional programs often allow up to 90 percent LTV on a one‑unit second home purchase, which translates to about 10 percent down, subject to lender overlays and reserves.
Do HOA and CDD fees affect my mortgage approval in Viera?
- Yes, lenders include HOA dues and Viera’s CDD non‑ad valorem assessments in your monthly housing costs, which impacts debt‑to‑income and required reserves.
How does Florida home insurance impact qualifying?
- Higher Florida premiums raise your monthly payment used for underwriting, so early quotes and possible wind‑mitigation credits are key to staying within target ratios.
Will I receive Florida homestead benefits on a Fairway Lakes second home?
- No, homestead exemptions and Save Our Homes protections apply only to your primary residence, not to second homes.
Can I rent my Fairway Lakes home sometimes without changing my loan type?
- Limited, occasional rental use can be compatible with second‑home financing if you occupy the property part of the year and maintain control, but regular rental plans generally trigger investment‑property terms.
