Orlando isn’t just famous for theme parks — it’s one of the most popular destinations for vacation homebuyers in the U.S. With warm weather, strong rental demand, and year-round attractions, many people are choosing to invest in vacation homes in Orlando for both personal enjoyment and long-term financial gain.
If you’re considering purchasing a second home or investment property, here’s everything you need to know about financing your Orlando vacation getaway in 2025.
Why Buy a Vacation Home in Orlando
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Strong Rental Potential: With millions of annual visitors, Orlando offers consistent short-term rental demand.
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Property Value Growth: Florida’s real estate market continues to show steady appreciation.
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Lifestyle Benefits: Enjoy your own home near theme parks, golf courses, and top attractions.
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Tax Advantages: Mortgage interest and property taxes on a second home may be deductible.
Owning a second home in Orlando can serve as both a lifestyle investment and an income-producing asset.
Vacation Home vs. Investment Property
Before applying for financing, clarify your intent:
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Vacation Home: Used primarily for personal stays; you can rent it short-term when not in use.
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Investment Property: Intended primarily for rental income; financing rules are stricter.
Understanding the difference helps you choose the right mortgage type and qualify more easily.
Financing Options for Orlando Vacation Homes
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Conventional Loan:
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Typically requires 10%–20% down.
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Competitive interest rates for borrowers with good credit.
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Property must be a single-family residence or approved condo.
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Jumbo Loan:
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Ideal for high-value vacation homes exceeding conforming limits ($750,000+).
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Requires excellent credit and a larger down payment.
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Bank Statement Loan:
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Best for self-employed borrowers who use personal or business statements to prove income.
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Flexible and common among Florida investors and business owners.
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Home Equity Loan or HELOC:
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Use equity from your primary residence to finance your vacation home.
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VA Loan (for Eligible Borrowers):
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Available for second homes under specific conditions, mainly for veterans with strong entitlement.
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Requirements to Qualify
To secure financing for your Orlando vacation home, most lenders require:
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Credit Score: 680 or higher (740+ preferred for best rates).
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Down Payment: 10%–25%, depending on property type.
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Stable Income: Verified via W-2s or bank statements.
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Cash Reserves: 2–6 months of mortgage payments in savings.
Partnering with a Florida mortgage broker ensures you find lenders offering the best rates for second-home buyers.
Tips to Secure the Best Vacation Home Mortgage
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Work with a Local Expert: Brokers familiar with the Orlando market can connect you with specialized lenders.
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Get Preapproved Early: Sellers often prioritize preapproved buyers.
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Consider Short-Term Rental Rules: Some neighborhoods or HOAs restrict Airbnb rentals.
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Lock in Rates Quickly: Rates fluctuate — a rate lock protects your payment during underwriting.
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Plan for Insurance and Maintenance: Florida’s climate means factoring in flood or wind coverage.
Example: Payment Comparison
For a $500,000 vacation home with 20% down:
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At 6.5% interest, the monthly payment is about $2,528.
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At 7.0% interest, it’s around $2,661.
Even a small rate difference can impact your return on investment over time.
Final Thoughts
Buying a vacation home in Orlando can be both a rewarding investment and a personal retreat — but the key to success lies in smart financing. Understanding loan options, preparing your finances, and working with a trusted Florida mortgage broker ensures you get the best rates and terms possible.
Whether you’re purchasing your first second home or expanding your investment portfolio, My Miami Mortgage Broker can help you explore customized loan programs tailored to your goals.
