You Can Own a Second Home Without Owning a First Home

You Can Own a Second Home Without Owning a First Home!

Yeah, that's right.

In mortgage language, a "second home" doesn't mean it's the second property you own - it refers to how you plan to use the home. Many people are surprised to learn that you can buy a second home without ever owning a first one.

Watch the video below to learn more:

Let's break it down.

Primary Residence
Your primary residence is your main home - your "main squeeze." It's where you live most of the time, and usually where your job is located. Unless you work remotely, your primary home is typically in the same area where you work and spend the majority of your time.

Second Home
A second home is a property you use for personal enjoyment, like a vacation cabin in the mountains or a beach condo. You stay there yourself - it's not rented out. So, you could rent an apartment in the city for work but own a cabin in the mountains. That cabin qualifies as your second home mortgage.

Investment Property
If your plan is to rent out the home, even part-time through Airbnb or VRBO, it's considered an investment property. The moment rental income enters the equation, your lender treats it differently - with a higher interest rate and different down payment requirements.

That's why it's important to talk with your mortgage broker before you buy. Your intended occupancy - whether primary, second home, or investment - can significantly affect your loan terms.

Call us to find out how your intended use impacts your rate and down payment.