My first property was a "second home" mortgage with 15% down. I've since refinanced that loan and bought additional properties with standard 20%-down "investment" mortgages. The question is, when (if ever) can I say, "This property is no longer a second home, it's an investment" and then get a new "second home" loan on a new property purchase? (Note: I already know I can get another "second home" loan in a different geographical location. I am talking here about multiple properties in a single small area). I guess I'm trying to "recycle" my second home low-down-payment benefit and use it again.

If you refinanced this as an owner occupied you must occupy the residence for one year. If it was refinance as a Second home you must maintain the availability to live in it for 1 year. This is where people will use it as a STR and schedule themselves 14 days to live in the home as well to meet occupancy requirements.

A Second home with Fannie Mae requires 90% LTV or 10% Down whereas a 1-unit Investment property is 85% LTV or 15% Down. A Second home is restricted to a 1-unit, while an investment property for 2-4 unit would be 75% LTV or 25% Down.

20% Down is generally considered "The Down Payment" because it will remove the need for Mortgage insurance and lower your monthly payment.

Please See below for the requirements for a second home.


Best of Luck!

It looks like it didn't want to attach this image on the first go around.

So if you stay in the place for 14 days can you then legally rent it long term afterwards even if the year is not up?

Originally posted by @Torrell Palmason:

If you refinanced this as an owner occupied you must occupy the residence for one year. If it was refinance as a Second home you must maintain the availability to live in it for 1 year. This is where people will use it as a STR and schedule themselves 14 days to live in the home as well to meet occupancy requirements.

A Second home with Fannie Mae requires 90% LTV or 10% Down whereas a 1-unit Investment property is 85% LTV or 15% Down. A Second home is restricted to a 1-unit, while an investment property for 2-4 unit would be 75% LTV or 25% Down.

20% Down is generally considered "The Down Payment" because it will remove the need for Mortgage insurance and lower your monthly payment.

Please See below for the requirements for a second home.


Best of Luck!

I would not recommend LTR, as the Second home must be suitable for year round occupancy and if you have a tenant it is no longer suitable for you to live in it. I know many people use a Second home as a STR and schedule 14 days to live in the home.

Best of Luck!