mortgage rates for second home vs investment properties

5 Replies


I am looking to purchase a property as second home. I understand the mortgage rates are lower for second home compared to investment property.

If I decide to rent this property in the future for any reasons (airbnb or leased), is that illegal? What are the consequences?



Hi @Manish Shah you can certainly rent out the second home in the future, but if you are closing on the property with the intent to have it as an investment property, I would caution you against doing that. You should INTEND for that property to be a second home for yourself at the time of closing. If things change and you choose LATER to make that an investment property, that's another story.

@Dan Barli   thanks for your comment.  I'm currently speaking with lenders re: first rental property financing and one loan officer suggested I use second home financing for the lower rate while I never stated any intention other than it being an out of state rental for income.  That conversation made me hop on here to see others thoughts, your comment confirmed exactly what I thought / felt.  I feel there's enough I'm concerned about already going into the first one, I don't need to add more.