Secondary Home

It’s never been easier to buy a beautiful vacation home with as little as 10% down payment.

Secondary Home Facts

Secondary home rates are better than the rates of an investment property.
You can purchase a second home with as little as 10% down payment (compared to 20% down on an investment property).
Second homes are typically vacation homes. You can’t rent them out for more than 180 days in a year and you must reside in them 14 days per year.
Discover loans that make it easy to purchase a vacation home without having to put a lot of money down.

Today’s rates

Conventional Loans

Rates for Primary Home Purchase

5.625% (5.775% APR)

5.5% (5.654% APR)

5.125% (5.337% APR)

FHA & VA Loans

Rates for Primary Home Purchase

5.25% (6.098% APR)

5.25% (5.548% APR)

Rates, terms, and fees as of May 12, 2023 1:07 pm and subject to change without notice. Select a product to view important disclosures, payments, assumptions, and APR information. Please note we offer additional home loan options not displayed here. Rates for Primary Home Purchase.

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Can you deduct mortgage interest on a second home?
Mortgage interest paid on a second residence used personally is deductible as long as the mortgage satisfies the same requirements for deductible interest as on a primary residence.
How much do you have to put down on a second home?
You can buy a second home also referred to as a vacation home with as little at 10% down. Only conventional loans are avaible for second home financing.
Requirements for second home mortgage
There are requirements needed to be met for a second home. The home must be occupied by the borrower for some portion of the year, it is only restricted to one-unit dwellings, it must be suitable to for occupany year-round, the borrower must have exclusive control over the property, it cannot be a rental property or in a timeshare arrangement. It cannot also be subject to any agreements that give a management company firm control over the occupany of the property. These are all Fannie Mae guidelines.
How many second homes can you have?
According to Fannie Mae, you are able to finance up to six properties. You are able to in fact own multiple second homes as long as they meet the criteria. The home must be within 100 miles of your primary residence. If the home is closer than 100 miles, it must be at a golf course property, waterfront property, or near a theme park or resort area. You must live in the home at least 14 days out of the year or 10% of the days it is rented out, whichever number is greater.
Are mortgage rates on second home higher?
Florida Mortgage rates on a second home depending on market conditions are usually .5% or more higher than primary home mortgage rates.
Can you roll your closing costs into your mortgage?
Only on a refinance home loan. You can only roll the closing costs into a mortgage loan on a refinance transaction. However, you cannot roll the closing costs on a purchase transaction.
Can you get an FHA loan for a second home?
An FHA loan is intended for first time homebuyers to purchase a primary residence. FHA occupany rules state you must occupy the property within 60 days of signing and intend to live there for at least one year. There are a few loan exceptions however that FHA may consider such as if the borrower is relocating or has relocated because of employment, has found a new residence that is more than 100 miles from the borrower's current home. The borrower does not have to live in the original house and could obtain a new FHA-insured mortgage on the new property, if the relocation meets eligibility requirements. The borrower may even be able to provide evidence that he has an increase in legal dependents and the property is failing to meet the families' needs.
Can you do short term rental on a second home?
Yes, as long as you live in the home more than 14 days out of the year and you are only renting it out for 10% of the time. Once you have owned the property for more than a year, you are able to rent out the home on a longterm basis. You are not allowed however to use rental management companies. It would be your responsibility to find a renter, collect rent, and maintain the property. The property cannot also be a timeshare.

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