Financing a vacation home typically involves taking out a second mortgage or home equity loan. Start by evaluating your budget and ensuring you meet the lender’s stricter requirements for second properties, such as a higher credit score, lower debt-to-income ratio, and a larger down payment (often 20-30%). Shop around for competitive mortgage rates, and consider factors like loan term, interest rates, and associated costs. If you plan to rent the vacation home, ensure your expected rental income aligns with the costs of ownership, including property management and maintenance.