Plan for at least 10% down
A conventional second-home loan typically requires at least 10% down, although credit, reserves, debt-to-income ratio, property type, and the overall file can affect the available options.
Buying a Home
Thinking about buying a second home?
A second home can be a mountain retreat, a beach house, or another place you use personally. The financing rules are different from both a primary residence and an investment property.
The property needs to qualify
The home generally needs to be a one-unit property that is suitable for year-round occupancy and primarily available for your personal use. It should also make sense as a second home based on its location and distance from your primary residence.
Personal use versus rental use
Occasional rental may be allowed, but the property cannot function primarily as an investment or rental under second-home financing. If rental income or investment use is the main goal, investment-property financing is the better conversation.
Yes, the beach house counts
A second home does not have to involve snow, mountains, or ski goggles. Send me the property, intended use, and your financial picture, and I will help determine which financing bucket actually fits.
Written by Marta Lillard
25+ years of mortgage experience, explained in plain English.
Mortgage Broker · First Coast Mortgage Funding · NMLS #879436 · Licensed in Florida and Georgia
Questions about your options?