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Second Home Mortgages

Your mortgage options for purchasing a second home
or vacation property.

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Mortgage Options for Second Homes

If you’re looking to buy a second property, Newfi is here to help! Whether you want a new home loan or are looking to use the equity in your current home to purchase a second, we can provide you with a wide variety of options to suit your needs.

Get In Touch with a Newfi Senior Loan Advisor Today!

Our team of dedicated Senior Loan Advisors are here to help you through the mortgage process and answer any questions you have.

What qualifies as a second or vacation home?

Since investment properties are financed differently than second homes, lenders are careful to look at factors that indicate whether a loan is being taken out on a property that is truly a second home, rather than an investment property in disguise.

Here are some factors that lenders use to determine whether a home is a true second home:

  • You live in the home on a near-regular basis
  • The home is at least 50 miles away from your primary residence
  • You don’t rent the property out more than 6 months a year
  • You don’t already have another second home in the same area
  • The property is not a timeshare


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Can I Use Rental Income to Qualify for a Second Mortgage?

No, you can’t use rental income to qualify for a second home mortgage. If rental income is an important part of justifying your purchase, the home will be considered an investment property, resulting in higher interest rates and down payment requirements. A DSCR Cash Flow Loan may be your best option in this scenario.

Frequently Asked Questions

What Would be My Monthly Payment on a Second Home Mortgage?

Second home mortgage rates depend on your credit, income, and other factors. You must be able to afford both your primary residence and second home payments. Contact us to figure out what your second home mortgage payment is likely to be.

What are the Advantages of a Second Mortgage?

In addition to the enjoyment and convenience you get from having a home in another location, a second home may have other advantages, such as producing occasional rental income or serving as a real estate investment that can potentially appreciate.

How Does a Second Home Loan Compare to an Investment Property Loan?

Second Home Mortgages offer lower interest rates and down payment requirements compared to investment property loans. With these mortgages, you qualify using traditional or self-employed income documentation.

Investment Property Loans have stricter qualifications, higher interest rates and larger down payment requirements. These mortgage options offer borrowers the ability to use rental income to qualify for a loan, provided you have proven experience as an investment property manager.

What are Current Second Mortgage Rates?

Your exact rates depend on the interest rate you qualify for and the term you select. Contact us to review your options and calculate your payment.

What is the First Step in Getting a Second Mortgage Loan?

Because everyone has their own unique situation, we recommend speaking to a loan advisor about your options as your first step. Go to or fill out the form on this page for a free consultation with one of our licensed loan advisors to learn about what documentation and qualifications you may need!

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