Second home mortgage vs investment property mortgage
Good afternoon everyone,
I have a home that currently has a second home mortgage on it. We rent it on AirBnB and VRBO. With the real estate market going up, we have extra equity in the home now. If I were to refinance this home into an investment property mortgage, would I be able to purchase another home in the same area as a second home, since at that point I have an investment property but no second home in the area? We still meet occupancy requirements for the second home mortgage, so at the least we would refinance to remove PMI and take some cash out.
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Hi @David Rosengaft - it certainly sounds possible. As long as you meet Second Home requirements, which it sounds like you're already aware of them, I don't see any apparent issues. One thing to consider is that you are going to be restricted to a maximum Loan to Value of 75% on a cash-out refinance of either a second home or investment property.
I do some business in Virginia and am more than happy to answer any more of your questions if you want to reach out.