Mortgage Question: Second Home vs. Investment Property

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Considering purchase of a PUD unit (townhome, not condo-tel) in a resort area and would like some advice about what the exact rules are governing second home and investment property loans.

We intend to use the property ourselves as much as possible (8 long weekends per year, plus a few weeks when we can), but plan to rent it via VRBO when we are not there. I will manage the rentals and not use a management company.

We will claim the rental income to the IRS, but do not expect it to be much; we may or may not break even. 

Can anyone point me to the exact language Fannie and Freddie use when defining owner types and loan types? None of the loan officers can point to the exact language. They basically tell me I can do either loan, but getting an investment loan would be the safe route. I agree, but darnit, I would not buy this property if I did not intend to use it myself as a second home! Any advice out there?


We bought as a second home loan and started renting a few months down the line. It worked okay,   the mortgage people said people change their mind all the time.   We were upfront about our timeline.   I know they can call such loans but we were experimenting with that house and did not know if we would rent it. that being said we had good credit and have never been late so the broker at the bank  was informed that was our plan and kind of shrugged it off. If you use it more then 2 weeks a year you are mixed used on taxes but not sure the mortgage people care about that.   Where you really get into issues is making sure you have the right insurance down the road.

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