Second Home Mortgage | Vacation Home Mortgage

Buying a second home or vacation home is a dream for many Americans. It’s also a big decision. Before you make any major money decisions make sure you break down the pros and cons of such an investment.

A second home can act as both a vacation home and an investment, as homeowners can easily rent them out when they’re not staying there. But like most home purchases, buying a second home probably means you’ll need a second mortgage. When you are going through the second home search and purchase process, there are a number of factors you’ll need to account for. These include overall affordability, purposes for the home, tax considerations and payment terms. Meet with a financial advisor in your area if you have questions about how buying a second home could affect your short- and long-term financial plans.

Second home mortgage follow the standard conventional loan limit of $832,750 in 2026 for a single family residence.

What Are the Advantages of Conforming Second Mortgages?

• Minimum down payment of 10%
• No prepayment penalty ever
• 30yr, 25yr, 20yr, 15yr, or 10yr
• Up to 43% debt to income ratio
• With or without mortgage insurance

What Are the Requirements?

• Minimum credit score 620
• Debt to income ratio under 43%
• Minimum down payment of 10%
• Down payment must be verified
• Up to 80% Loan to Value [ LTV ] for Rate & Refinances
• Up to 75% Loan to Value [ LTV ] for Cash-Out Refinances
• You must live in the house for some part of the year
• The home must typically be located at least 50 miles away from your primary residence
• The home cannot be subject to a rental, timeshare, or property management agreement
• Conforming Loan amounts up to $832,750

Additional Income / Mortgage Program Options for Second Homes:

• Asset Depletion
• Bank Statements
• P & L
• 1-Year Tax Return