Second Home Vacation Loan in City I Already Own In (Possible?)

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Second Home Vacation Loan in City I Already Own In (Possible?)

Daniel Gibson
Rental Property Investor · Tampa, FL · Member since 2019 · 16 posts · 3 votes

The title says it all, can I buy a vacation home using a second home loan in a city that I already own property in but do not reside in? Thanks all!

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y

Usually has to be 50 miles away from another 2nd home and you need to use your second home at least 14 days per year.

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  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    3y

    Is it a rental with a lease? If so why not! If it’s a short term probably not. Would need a lease I think 

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y

    Usually has to be 50 miles away from another 2nd home and you need to use your second home at least 14 days per year.

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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Hey @Daniel Gibson, 50 miles minimum just like @John Underwood said. You can always use a DSCR loan or other standard mortgage.

    1Reply
  • Daniel Gibson
    OP
    Rental Property Investor · Tampa, FL · Member since 2019 · 16 posts · 3 votes
    3y

    Thank you @John Underwood and @Michael Baum!

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  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 996 posts · 1k+ votes
    3y

    It's unclear from the question whether the home you already own has a vacation home loan as well.

    IE if home A is an investment property, then you can buy home B as a vacation home.

    If home A is a vacation home, then you cannot buy home B as a vacation home.

    If home A is a vacation home and you're desperate to buy home B as a vacation home, I would think you could refinance home A into a different loan product, and then the vacation home loan would be eligible for that area again.  But if you've got a good rate on home A already you may not want to re-finance it at current rates.

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  • Daniel Gibson
    OP
    Rental Property Investor · Tampa, FL · Member since 2019 · 16 posts · 3 votes
    3y

    @Ryan Moyer good question! None of the properties are vacation homes. I own two duplexes in the city: one has 2 x MTR leases and is on an FHA, the other duplex has 2 x LTR leases and is on a conventional loan.

    Given this, it sounds like the 50 mile rule wouldn't apply in this instance. If so, great news. Thank you for calling this out.

    Thank you also @Luke Carl for your note regarding the leases!

    Appreciate you all taking the time.

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