Difference between 2nd home and Vacation home

[Ed O.]

From purely a financing standpoint, can anyone advise me as to how the 2 types are determined by the lenders?

Per lender guidelines, what makes a 2nd home a second home and a vacation home a vacation home?

I suspect 2nd hope gets better terms in most cases.

thanks!

[Dion DePaoli]

There is no distinction, those are the same thing.

1. Primary Residence
2. Second Home / Vacation Home
3. Non Owner Occupied / Investment Property

The underwriting gets 'tougher' as the numbers above get larger. So easiest for PR then 2nd and then NOO is the hardest. Many times folks try to make a NOO a 2nd home designation but when it is too close in geography, like on the same street and does not possess any significant attributes to make it believable, the home will be considered NOO for underwriting.