Buying a Second Home vs. Buying Your Second Home

Buying a New Primary Residence vs. a Second Home: Clarifying the Differences

There’s a lot of confusion in the phrase “Second Home”. I really commonly see people asking about second homes, but they really are asking about buying a new primary home for their second time. In the mortgage world, a “second home” typically refers to a vacation property—somewhere you stay part-time, like a beach house or a cabin.

So, if you’re looking to purchase a new primary residence—whether moving to a bigger house, downsizing, or relocating—you’re not buying a second home. Instead, this is simply another primary residence, and there are all the standard loan programs available to you again. Conventional at 5% down, FHA at 3.5%, VA at 0%, and USDA at 0%.

Keeping Your Current Home

If you love the interest rate on your current home or think it would make a great rental investment, there’s no need to sell or refinance. Instead, you can hold onto it, rent it out, and still qualify for another primary residence. In fact, rental income from your old home can help offset that mortgage, making it easier to qualify for a new loan.

If you need a down payment, but don’t want to lose that great rate on your current home, you can even get a HELOC to tap out a some equity on the current home, for your down payment on your new home purchase.

This approach works well for many homeowners, and it’s something I help clients with regularly. The key is to have a solid plan in place to ensure you’re taking advantage of the best loan programs while meeting your financial goals.

So, What Really Counts as a Second Home?

A true second home is a vacation property—a place you’ll live in part of the year. Second homes typically require a larger down payment (around 10-20%) and come with different mortgage guidelines.

In areas like Bend, many buyers look for vacation homes, and I can certainly help with that process as well. Just remember, the mortgage approach is different than it would be for a new primary residence.

Ready to Make Your Next Move?

Whether you’re looking to upgrade your living situation or find the perfect vacation spot, I’m here to guide you through the process. Let’s simplify things and get you into the best loan for your situation. Give me a call or text at 541-359-7212, email matt@bendmortgagebrokers.com to ask questions, or visit my online application at mattboytz.zipforhome.com to get started.

Matt Boytz
Direct: 541-359-7212
Office: 541-972-8616
NMLS 1294957
NMLS 2552455
Matt@BendMortgageBrokers.com
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