Simplified explanations of common mortgages and loans
Various articles explaining the variations and implications of a commonly used mortgage terminology.
Options for Second Mortgage
Here in Florida buying a second home can be a dream come true for most people. Some things to remember about second homes as they are viewed by lenders differently from a primary residence and differently from an investment properties. A second home is a single family residence (including condos but not time shares) that a consumer will occupy on a part time basis.
Depending on the criteria of the lender a second home can rented out as a vacation rental on as short term basis, but must be occupied by the owner for a portion of the year. A second home cannot be rented on an annual basis. A consumer should talk to a certified public accountant to understand the tax impacts of renting out a second home.
Second Home Mortgage Loans Available in Florida
Renting out a second home for 3 to 6 months can help a borrower off set their expenses. Before you do consider renting your second home make sure you understand the lenders criteria. Most lenders will add a second home ride addendum which may limit or exclude the home from being a rented
Generally second home mortgage loan interest rates run a little higher. FHA, VA, and USDA mortgage loans cannot be used for second homes purchases. Generally only conventional loans with 20% down plus closing cost can be used for the purchase of these homes. Some seller concessions maybe allowed
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