You Can Own a Second Home Without Owning a First Home

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

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

Watch this video to learn more:

Primary Residence

Your primary residence is your main home - the place 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 spend the majority of your time. Mortgage rates and down payment requirements are usually lowest for your primary home.

Second Home

A second home is a property you use for personal enjoyment, like a vacation cabin, beach condo, or lake house. You stay there yourself - it is not rented out. For example, you could rent an apartment in the city for work but own a cabin in the mountains. That cabin qualifies as a second home mortgage, which typically requires a slightly higher down payment and interest rate than a primary residence.

Investment Property

If you plan to rent out a home, even part-time through platforms like Airbnb or VRBO, it's considered an investment property. Lenders treat investment properties differently, usually requiring higher down payments and interest rates. Understanding the difference is crucial before purchasing.

Why It Matters

Your intended occupancy - whether primary, second home, or investment property - significantly affects your loan terms. Work closely with a mortgage professional to determine which category fits your plan. Learn more about vacation home financing at Investopedia and compare loan options on Fannie Mae.

Next Steps

Before buying, consult a mortgage broker to understand how your intended use impacts rates, down payments, and eligibility. Contact Galaxy Lending Group to get expert guidance on your second home mortgage today.