Occupancy
Second-home financing generally requires legitimate personal occupancy and must satisfy applicable program definitions.
Second-home financing
A second home is financed differently from both a primary residence and an investment property.
Occupancy intent, location, personal use, rental activity, equity, reserves, and loan structure can determine whether a property qualifies as a second home.
Down payment
Equity requirements are typically higher than for a primary residence.
Reserves
Additional liquid reserves may be required.
Rental use
Rental activity can affect how the property is classified and underwritten.
Location
The property's characteristics and location may be considered when determining second-home eligibility.
Compare structures
Second-home conventional financing should be compared with investment-property or other appropriate financing.