Is it Really a Second Home??

A second home is a single unit property that the buyer occupies in addition to a principal residence.

Location is a factor in determining whether a property is a second home. The property designated as a second home must be in a different metropolitan area or remote in distance from the applicant’s primary residence. The property:

• Must be suitable for year round occupancy;
• Must be for the borrower’s exclusive use and enjoyment; and
• Must not be subject to any rental pools or agreements that require the borrower to rent the property or to  give a management firm control over the occupancy of the property.

If it is not reasonable, based upon a review of circumstances and available documentation,  to conclude that
the property to be financed is or will be a primary or second home, then the transaction will be treated as
investment property.

Tip to the buyer:  Write a short letter of explanation for the loan officer. Explain why you would like to purchase the 2nd home in that location.  For example, visiting relatives, enjoying sports not available within reasonable distance of your primary residence, different weather, different topography, different lifestyle, etc...