The Realtors Confidnece Index has recently reported that there are changes occuring in the financing of vacation and investment homes.  For vacation homes that are found through out the Lake Geneva, Delavan, Browns Lake, Lauderdal Lakes, Whitewater, Twin Lakes and Lake Beuhlah area in Southestern Wisconsin we’re seeing that in the area of 63% were using a mortgage to finace these homes verses 75% in 2007.  The big jump comes in the investment home market that saw approximatley 68% of the homes financed in 2007 with a mortgage verses only 39% in 2011.  Investment properties also saw an increase in the downpayment from 22% to 30% over the same time period.  This certainly reflects to some degree the challenges faced today in obtaining mortgages.

As a comparison the primary home financing has remained fairly unchanged with 91% getting a mortgage on their home today verses 92% in 2006.

Guest post by Steve Beers, President, Keefe Real Estate.