Now is quite possibly the best time in a generation to buy a vacation or investment property.  Mortgage rates are at all-time lows and the excess supply of homes on the market means that buyers can almost name their prices for oceanfront properties if the sellers want to offload the property bad enough.  However, before you can take full advantage of this, you need to meet certain minimum requirements to make sure that you qualify for a mortgage.  Here are some of the requirements you need to meet.

The first requirement, and the one that prevents many people from acquiring property by the beach, is the down payment that you need to put down.  Several years ago, it was possible to obtain up to one-hundred percent financing for a mortgage, however those days are over.  Most banks will insist on the traditional down payment for a mortgage, which is between ten and twenty percent of the sale price of the home.  For homes by the ocean, where property values can still be high, even if they are down from astronomical levels, the down payment a loan requires can be incredibly large.  If you have the free cash, this is not a problem, but if you don’t, this might cause you to miss out on the low prices.

The two other things that you need to apply for a mortgage are proof of income and a good credit score.  Both of these components, along with a  down payment are there to make sure that the bank gets its money back.  While you won’t be able to find any loans without a source of income, if you have a below-average credit score, you still may be able to find a loan to finance your future beach home, but you will be paying a much higher interest rate.

For more information on finding, buying, and closing on your dream beach home, visit the Beachfront Property Guide.