Overview
Second-home loans finance a property you'll personally use part-time, not a rental. Down payment and qualification differ from primary or investment financing.
Benefits
- Down payments often 10-20%
- Better pricing than investment loans
- Conventional and jumbo options
Eligibility
- Property must be a reasonable distance from primary residence
- Must be available for personal use year-round
- Cannot be subject to a rental agreement
Cincinnati scenario
A Hyde Park family buying a lake home in northern Kentucky. Conventional second-home financing at 10% down with a clean structure.
Frequently Asked Questions
Yes. A second home is for your personal use; an investment property is for rental income. Loan programs and rates differ accordingly.