Second home loans: the vacation home you actually use.

What qualifies as a second home

A one unit home you occupy yourself for part of the year, that's suitable for year round use, and that's a reasonable distance from your primary home, typically in a vacation or resort area. You must keep control of the property. It can't be subject to an arrangement that gives a rental or management company control over its use.

The terms

Typically 10% down, with pricing better than an investment property and close to a primary home in many cases. Gifts may be allowed. Reserves are commonly required.

Can you rent it out?

Occasional renting can be acceptable, but rental income generally can't be used to qualify, and the property can't function primarily as a rental business. If you plan to rent it most of the year on Airbnb or through a management company, it's an investment property. See conventional for vacation rentals and DSCR.

The Disney question

I get asked this constantly in Orlando. A family that wants a home near the parks for their own vacations, renting it a few weeks a year, may fit a second home. A home in a resort community bought to run as a nightly rental most of the year does not, no matter how often the family visits. Choosing the honest category protects you. Misstating occupancy is mortgage fraud.

Florida considerations

Insurance on vacation homes can be costly, especially near the coast. Condos must meet project standards, and condotels generally don't qualify. HOA rental rules matter too. See conventional condos.

A family vacation home

The Lees live in New Jersey and visit Orlando several times a year. They bought a four bedroom home in a Kissimmee community with 10% down as a second home, using it themselves and renting it occasionally within the rules. They didn't use rental income to qualify.