Vacation Homes and 2nd Homes
A second home is defined as a home that is NOT your primary residence, and one you spend a minimum of 2 weeks per calendar year occupying. The general rule of thumb is that this property is at least 50 miles away from your current primary, although there can be occasional flexibility with this.
Mortgage Trust’s conforming loan programs allow for the purchase and refinance of second homes, or vacation homes as well. These usually have rates and terms similar to those of the conforming primary residence, but have some tighter down payment requirements.
The second home will always require 20% down, as there is no Private mortgage insurance available for this scenario. (The Homepath loan will allow for lower down payments as there is never mortgage insurance, but you will only be able to use this on certain foreclosed properties).
