Mortgage Guides
Second Home Mortgage Requirements 2026: What You Need to Know
6 min read · 2025-08-22
Buying a vacation home or second residence has different rules, rates, and requirements than a primary mortgage.
Second home mortgages occupy a middle ground between primary residence and investment property loans. The rates are higher than primary but lower than investment — and the rules are more specific than most buyers realize.
What Qualifies as a Second Home?
To qualify for second home rates (which are better than investment property rates), the property must: be suitable for year-round use, be located a reasonable distance from your primary residence (typically 50+ miles), not be rented out more than part-time, and be a one-unit property.
Second Home Loan Requirements
- Minimum down payment: 10% (vs. 3% for primary)
- Minimum credit score: 680–720 recommended for best rates
- DTI: Under 43–45% including both mortgage payments
- Reserves: 2–6 months on both properties
- Cannot use rental income from the second home to qualify
- Must occupy the property for some portion of the year
If you plan to rent out your second home more than 14 days per year, lenders may classify it as an investment property — triggering 25% down payment requirements and higher rates.
Rate Premium for Second Homes
Expect to pay 0.375–0.75% more than a comparable primary home mortgage. On a $500,000 loan, that's roughly $90–$180/month more. The premium reflects the higher default risk — people stop paying vacation home mortgages before primary mortgages when finances get tight.
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