When it comes to financing, second homes require the buyer to be qualified under conventional financing.
Our government loan programs—FHA, VA, and USDA— don’t do loans on second homes, but rather only on primary residences.
Under the conventional loan guidelines, the buyer of a second home would need at least 10% down. And remember to take into account that any time a buyer puts less than 10% down, they would need private mortgage insurance (PMI).
Additionally, the home needs to be a reasonable distance from your primary residence, like a getaway home for the weekends or vacation.
Beyond that, the process works the same as when you bought your first home, with regards to mortgage interest paid and tax benefits under the 2018 tax plan.
If you have any questions regarding second-home financing, please don’t hesitate to reach out to me or my team.