Having a second home for escapes to the beach, the lake or the mountains, tops our list of reasons why it’s rewarding to own a vacation property. Many people find investing in real estate to also be a worthy pursuit. HomeBridge Financial provides loans for both second homes and investment properties. Be sure to talk over your homeownership goals with your Mortgage Loan Originator to make sure you know your options, the loan requirements and benefits.
Things to consider when thinking about buying a second home:
Second-home Rider. You will have to sign a Second-home Rider stating that you will use and occupy the home as a second home – not a rental.
Loan Specifications. Second-home loans typically have lower interest rates than investment properties. That is why your Mortgage Loan Originator will ask about how you intend to use the property.
Tax Benefits. You may get tax benefits depending on the total amount of mortgage interest you are eligible to claim based on current tax law. Ask a tax advisor for the details.
Things to keep in mind before buying an investment property:
Residency. An investment property is not your primary residence or home and has been purchased to generate rental income, profit or tax savings.
Different Loan Requirements. Investment property loans typically have higher interest rates, require larger down payments and have different underwriting requirements than loans for homes that are occupied by the owner.
Property Types. You can buy either a commercial or residential property as an investment.