Whats the difference between an investment property and a second home?
• A second home is generally considered a property that is not rented out more than two weeks per year and which is located in an area which makes sense, given the borrower’s current principal residence. A second home would not be, for example, 20 minutes down the road from the borrower’s primary home. An investment property is any 1-4 unit residential dwelling which is neither a principal residence nor a qualified second home. Whether or not the property is earning money for the owner is not relevant in this determination.
