Mortgage for second home and any tax implications

[Manav Wadhwa]

Hello,

I currently own a home that I live in and is my primary residence. I have found a (rental) property that I plan to buy in another city.

My question is can I get mortgage on that property as my primary residence (let’s say I am able to convince bank). Also, do I need to worry about any implications with IRS? I will show the new property as rental itself. 

The benefit I see of this approach is that I will be able to secure mortgage cheaper as primary home. 

Thanks for helping me on it. 

[Napoleon DeCiutiis]

Quote from @Manav Wadhwa:

Hello,

I currently own a home that I live in and is my primary residence. I have found a (rental) property that I plan to buy in another city.

My question is can I get mortgage on that property as my primary residence (let’s say I am able to convince bank). Also, do I need to worry about any implications with IRS? I will show the new property as rental itself. 

The benefit I see of this approach is that I will be able to secure mortgage cheaper as primary home. 

Thanks for helping me on it. 

Manav,

Agree with the above on using a loan not designed for the property. I would recommend asking your CPA about the tax questions, and I would hit up @Tyler Solomon and @Raymond J. Rodrigues for questions on your mortgage. They are both rockstars in the STR rental lending community.

Good luck! Congrats on your new rental!