Are second home rates higher than primary residence?
Yes, modestly. Second-home LLPAs add a smaller adjustment than investment-property LLPAs. The rate is typically 0.25-0.5% higher than the same borrower's primary-residence rate at the same credit/LTV. Pricing improves with stronger credit and lower LTV.
Plain-English explanation
Fannie/Freddie tightened second-home LLPAs in 2022, narrowing but not eliminating the pricing advantage over investment property. The current matrix has second-home adjustments that scale with LTV — at 90% LTV, the LLPA is larger than at 75% LTV. Combined with credit and LTV LLPAs, total adjustments vary by file. Subject to current Fannie/Freddie LLPA matrices.
What can change the answer?
Occupancy intent, property location, and second-home LLPAs can change the answer. Rental use can shift classification.
Want the real answer for your conventional file?
Conventional guidelines are the rule. Your credit, income, DTI, PMI, LLPAs, and Florida payment math are what decide the actual answer.
More conventional questions on Second Home
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review.