Vacation Home = Second Home Financing with Crestico Funding
At Crestico Funding, we make it easy to finance the second home of your dreams, whether it’s by the beach, in the mountains, or anywhere you want to escape.
Step 1
Check Eligibility
Step 2
Payment Option
Step 3
Get Approved
Step 4
Close the Loan
Step 5
Repayment & Loan Terms
A “Vacation Home” = “Second Home”
Did you know a vacation home is classified as a second home even if you don’t own the home you’re using as your primary residence? for instance, if you’re renting in San Francisco and you want to buy a vacation home in Florida, the banks would consider the Florida property to be a second home.
- Here are some other things to keep in mind about buying your vacation home. Your second home:
- Is anything other than your primary residence that you plan to occupy sometime in the next twelve months, for some undetermined length of time
- Won’t be rented to other people for the sole purpose of producing income as in a non-owner occupied, rental property
- Is normally 50 miles or more from your primary residence (it should be obvious this is a “getaway” home)
These distinctions are important because they will determine the types of properties you can purchase, the kinds of loan products that you can use, and your cost of financing.
For 30 year, we’ve helped home-buyers get into their dream vacation homes. We’ll get you through the process quickly, efficiently, and with the excellent customer service you’ve come to expect.
What Is a “Second Home”?
In mortgage terms, a vacation home is classified as a second home — a property you occupy part-time but don’t rent out full-time. It must be:
- Located a reasonable distance from your primary residence
- Used by you and your family for personal enjoyment
- Suitable for year-round occupancy
- Not primarily used as an investment or rental property
Frequently Asked Questions (FAQs)
What’s the difference between a second home and an investment property?
A second home is a property you use for personal vacations or seasonal living — not rented full-time. An investment property is purchased with the primary goal of generating rental income. Mortgage terms and rates differ based on how you intend to use the home.
How much down payment is required for a second home?
Most second home loans require a minimum of 10% down, though putting down more can improve your interest rate and reduce your monthly payment.
What type of loan can I use for a vacation home?
Crestico Funding offers:
- Conventional fixed-rate and adjustable-rate mortgages (ARMs)
- Jumbo loans for higher-priced second homes
- Custom loan solutions for unique properties or borrowers with non-traditional income
Do I need to live in the second home for a certain amount of time?
Yes, lenders generally require that you occupy the property for part of the year. It must be available for your exclusive personal use for a portion of each year.
Will financing a second home affect my ability to qualify?
Yes, lenders will factor in both your primary mortgage and your new second home mortgage when evaluating your debt-to-income (DTI) ratio. A strong credit score, steady income, and manageable debt are key to qualifying.
Are there any tax benefits to owning a second home?
You may be able to deduct mortgage interest and property taxes on a second home — just like your primary residence. Consult with a tax advisor for personalized guidance.
How do I get started with the loan process?
Contact Crestico Funding for a free consultation and pre-approval. We’ll walk you through loan options, gather documentation, and help you close with confidence.