Home Loans
Second Home
Financing a second home is similar to a primary residence, but with stricter requirements and different rules.
Second home vs. investment property
Lenders distinguish between a true second home you occupy part of the year and an investment property held primarily for rental income. The classification affects rates, down payment, and reserve requirements.
What to expect
- Larger down payment, often 10–25% or more
- Stricter credit and DTI thresholds
- Cash reserves required (often several months of payments)
- Higher interest rates than a primary residence
Costs beyond the mortgage
- Property taxes and insurance (often higher for vacation areas)
- HOA dues and special assessments
- Maintenance, utilities, and travel
- Property management fees if rented
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