Rules different for 2nd/part time home?

[chfenton]

Hi,

We are looking at purchasing a vacation home in SC that we will use occasionally and leave vacant at other times.  Our primary residence is in my wife's name only.  If i were to purchase this SC home in my name only--is it still considered a 2nd home?  If so, are the restrictions/qualifications different?  I expect to purchase between 300-400k home with 150-200k down (50%).  Thanks

[Anonymous]

I can't say from a lending perspective what you'll experience, but you need to be absolutely sure you insure it as a second or vacation home with the proper time spans for vacancy. You don't want a damage claim rejected becuase you were gone 'too long' and let the damage get worse.

[Anonymous]

Not an expert in this area, but one thing I generally do know is that secondary homes almost always require a much higher down payment than standard. With you 50% down, you should be good to go. You might have a slightly higher interest rate than a primary mortgage but not too high.

[StartingOver10]

I'm in Florida and it is routine for second homes to get financed up to 90%. Naturally you need to qualify for it - but it isn't difficult. The DTI will include the current payment on the current residence. Have a detailed talk with your LO. Compare programs. SC may not be as open to high LTV as we are here in FL. I don't know your area at all. If you are buying in a resort area, your Realtor should have good lender contacts that are used to issuing mortgages for 2nd homes. 

OP, to answer the question you asked obliquely - no, you can't purchase it as a primary residence unless it will be a primary residence.

Check the qualifications with a couple of different lenders to see what their criteria is for second home financing. This is completely different from investment homes (rental) so don't say investment unless it is one.  An investment home does have higher DP requirements and higher interest rate + a rental rider on the mortgage. 

[me12345]

A couple of points...

Unless you plan on living in it more than 50% of the time it will be a 2nd home...(assuming that you don't rent it out, then it becomes Investment property)

2nd homes require a 10% minimum down payment...

Interest rates are the same for 2nd homes.

2nd home usually must be at least 100 miles away from your current residence. (this can vary from lender to lender)

There is know minimum usually if the the 2nd home is at a "Destination" point  (Lake House, or Beach House)

NEVER try to represent a purchase as something that it's not....They will find out, and you risk your deal not closing at all.

Thanks,