Mortgage Rules: Second Home vs Investment Properties
Every mortgage application you complete will involve you answering the question of how the property you intend to purchase will be used. If you already have a primary residence and are planning to get a second home, it is important to decide what will be the purpose of getting another property in the first place.
The option you select will play a part in determining the mortgage rates you will get. They also have different requirements that need to be met before the mortgage can be approved.
So what’s the difference between a second home and an investment property? Here’s a quick comparison based on IRS definitions and tax implications of both:
Hi I’m Dana!
I’ve been living, working and playing in Northern VA since 1990. All while raising four, now grown up, children. I’m a lover of all people, sucker for my grand puppies, and Realtor to Northern Virginia.
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