Buying Second Home As Investment
Has anyone done this? I was wondering what kind of restrictions there are on this such as if I have to use it a certain # of days a year or i can't rent on a 12 month lease (has to be short term stuff), etc. Any help would be great! Thanks!!
Are you asking from a loan qualifying perspective, a tax perspective, or a landlord perspective.
I have had this conversation w/loan broker before and they point out that it must be a viable location, ie. NOT down the street or the next town over (typical rentals).
If it is in a location that could be a 2nd home, even if you end up renting it out on and off, or for awhile, it is reasonable to take the loan as a 2nd.
My Credit Union actually now has a loan for a FP = future primary, because it is mostly a govt. and military CU and many buy a 2nd now for their future purpose.
I guess I'm looking more at a loan qualifying perspective. I would like to get a 2nd home in a vacation area. I would like to stay there some during the year, but if i don't have time or $ to make the trip would it be ok if there was a year that I never stayed there and it was rented out the entire time?
My experience with several loan officers is that would qualify for a 2nd home scenario. I have a house that just came vacant that I bought as a 2nd home. I am letting it sit there while I decide to make it my primary, re-rent, or make it a 2nd as I move in a different direction. The trick has been w/insurance, so I have had to make company changes there = pain. I've had no problems w/mortgage co. and they service 3 noo loans for me! *I do pay my loans on time*
Check the distance from your current home to the 2nd. I was looking into that and the loan officer stated that the 2nd home had to be at least 50 miles from the 1st home.
Check the distance from your current home to the 2nd. I was looking into that and the loan officer stated that the 2nd home had to be at least 50 miles from the 1st home.