Are you in the market to purchase a second home or an investment property? “Second home” and “investment” properties are used interchangeably, but they are not the same in the lending industry. Make sure you know the difference between the two types of properties so you can make an informed decision when you apply for your mortgage!

Second Home:
• This purchase requires a 10% down payment.
• The location of the home must be a reasonable distance away from your primary residence.
• A minimum credit score of 620 is required.
• Your interest rates align with primary residence rates.
• You can’t use the potential rental income to qualify for purchase.
• This home needs to be suitable for year-round use.Investment Home:
• This purchase requires a 15% down payment.
• There are no restrictions on the distance of the property from your primary residence.
• A minimum credit score of 620 is required.
• Investment property rates differ from primary residence rates.
• The goal of owning this property is to make money from it and use it as an additional income.
• The potential rental income can be used in qualifying you for the purchase.

If you have any questions or concerns about a property you are interested in purchasing, contact one of our team members and they will help determine the best loan product for you. Not yet pre-approved? Download our app to get the process started today!