Second Home Loans
A second home is just like it says, an additional home that you purchase in addition to the home you currently live in. This type of property you will either live in part of the year or utilize as an investment property and rent it out for others to live in.
There are some significant differences when it comes to loan qualifying requirements between purchasing a second home to reside in compared to being used as an investment.
Lenders may require that the new property is at least 50 miles from the current residence to be considered a second home and the IRS defines a second home as a property that you live in for more than 14 days per year or 10% of the total days you rent it out to others.
In contrast, an investment property purchased solely as a way to generate income and could be an ideal long-term wealth strategy. You are able to write off mortgage interest, maintenance, utility bills and depreciation. All which you usually cannot do with a second home
In general, it is usually easier to get approved for a second home mortgage easier than an investment property loan. Both are much stricter than they are for getting a mortgage for a primary residence.
For more information on second homes and investment properties contact us at 954-533-2024. We would be happy to help.
