Updated over 2 years ago on . Most recent reply
CREATIVE FINANCING - SECONDARY HOME OR INVESTMENT PROPERTY?
Could I buy my 1st investment as a secondary home instead of buying as an investment using 25% down payment? Currently own a primary single family home. I asked this question to a lender before but, was told I would have to live in it and it would have to be at least 100 miles away from my primary residence. Any expert advice on this would be greatly appreciated. Thank you very much.
Most Popular Reply
Flavia,
It does not have to be 100 Miles away it can be closer as long as it makes sense. It cannot be a Multifamily home as it must be a single family. Typically a vacation home/second home is in an amenity area by the beach, or by a lake, river, in the mountains, out of state etc. Second Homes are 10% down and do help you save money. You can also rent out a vacation home/second home typically 6 months out of the year or use it as a STR AIRBNB/VRBO.
There is a alot of confusion surrounding second/vacation homes that you must live in the home only and cannot rent. That is false you can buy it use it then transition it into a rental because you have that right. Its called a "Change in Life Circumstance" which means life and our decisions can and will change without notice.
If you are trying to buy a home calling it a second home in your immedite neighborhood it will not pass. You can also buy an investment home with 15% down so make sure you shop around.