Beach house 2nd home or investment property

If you plan to rent the home, then you would want an Investment property. If you are just going to use it as vacation home, then you can do 2nd home. You would want to be truthful on the loan application and your intent to occupy the home. Depending on your credit and LTV etc, the differences can be minimal to a large difference in rate/cost. Investment homes you can use proposed rent to help qualify, whereas 2nd home, you have to qualify with both your mortgages, if applicable... I am a CA licensed LO, if you would like to talk more about your options, give me a call.

If you rent it it would be an investment property.

All of the lenders I have ever worked dealt with have considered a home an investment property if it was rented for one day.

If you plan on renting the home 1 day per year, then according to the guidelines, it's an investment property and you have to disclose it as such.. Within the mountain of paperwork you sign, you will acknowledge 6 or 7 times the occupancy type (primary, 2nd home, investment).. if you purchase as a 2nd home and somehow the lender finds out your using it as a rental, then you've committed loan fraud, and that's not a good thing.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com