With a few exceptions, the rules for buying a vacation home mimic many of the rules for buying a primary home (at least in conforming loan amount limits).
- Interest rates are the same (you don’t get “hit” in rate for buying a 2nd home)
- Must have a 720 FICO
- 10% down is allowable, if your loan amount is conforming (up to $417k)
If you need a high-balance loan amount ($417,001 to $729,750), the restrictions are much heavier and the requirement is 35% down with a 740 FICO.
To be considered a 2nd home, it must be at least 50 miles away from your primary home and considered a “resort” area. The biggest challenge for most people is qualifying with both payments.
