A second home is a dwelling that the borrower occupies in addition to their primary residence.
Lenders will generally allow financing of either a one or two-unit dwelling as a second home. A second home is generally located in a resort area or where the borrower regularly conducts business. Generally, the borrower will own only one second home. However, it is conceivable that the borrower may own two or more second homes (for example, a second home at the beach and a second home in the mountains). Generally, the borrower will not own other second homes or investment properties in the same area as their primary residence.
Second homes must meet the following criteria:
• Borrower must occupy property for at least two weeks out of the year.
• Property may not be subject to any agreements restricting the borrower's occupancy such as mandatory rental pools, etc.
• Property must be suitable for year-round occupancy.
• There are no minimum mileage requirements from primary residence or other properties, but subject property must be located (in a resort area or where the borrower regularly conducts business) so as to reasonably function as a second home.
• The borrower may not be affiliated in any way with the builder, developer, or seller of the mortgaged premises.
• Income from the property may not be used to qualify the borrower.
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