Unlock the Door to Your Second Home
If you’re looking for a place to get away on the weekends, take longer vacations, or getting closer to retirement and looking for a place to spend more of your time, a second home may be just what you need. A second home also can be a great investment opportunity if used as a short-term rental.
A second home is defined as a one-unit property that’s located within a reasonable distance from your primary home, typically in a vacation destination such as a lake, mountain, beach, etc. However, there are a few exceptions. You must occupy the home for a portion of the year to be considered you second home. For instance, if you purchase a home for your college student to live in during college, that would be defined as an investment property. If someone else occupies the property full time, even a family member, it would no longer be defined as a second home.
The financing options for a second home are similar to those of a primary residence. The minimum down payment is 10%. Rates on second homes are also similar to primary residences. Terms are the same as well with amortizations up to 30 years.
If you are interested in purchasing a second home, talk with your local mortgage lender before you start your home shopping. Your lender will help you navigate the process and determine if purchasing a second home is right for you.