Private Lending & Conventional Mortgage Advice

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Krystl Matsunaga
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2nd home or investment property?

Posted Jan 17 2022, 00:16

Hi everyone. I am just starting out with my 1st rental property in Hawaii but am wondering which one is more beneficial: 2nd home that's a house hack vs. investment property. Per the lender I'm using right now, she said I can pre-qualify for more purchase price power with an investment property mortgage than a 2nd home mortgage. I would put 10% down with the 2nd home vs. 20% with the investment property, but would have to use a HELOC to fund the extra 10% down payment, increasing my DTI. She also mentioned that Freddie/Fannie is changing things for 2nd homes, so it might be more beneficial to do an investment loan. What are the pros and cons to each mortgage, as well as the tax advantages/disadvantages for both? Any other information would be greatly appreciated!! Thank you!

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