Get help second home mortgage loan and 2nd mortgages for vacation home and investment property financing. BD Nationwide offers multiple second home loan solutions for all types of borrowers. Shop and compare second home mortgages from top rated lenders and brokers.
Choose from 1st and 2nd lien finance options like: second mortgage loans, HELOC lines of credit, cash refinancing for applicants looking to finance second homes, vacation houses and investment properties. Tired of putting off home projects that increase your house’s value simply because you don’t have the cash?
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A Second Home Mortgage Home could be the solution that you’ve been searching for online! Maybe you can afford new home financing or the purchase of an investment property.
If you are considering buying a second home or rental property, but don’t have enough reserves to invest for the down-payment, consider taking out a second mortgage from your primary residence to finance the down-payment.
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Can I get a second mortgage to pay for my deposit on a 2nd home loan?
One of the most common sources of down-payments on homes today is a second mortgage taken out from a borrower’s primary residence. Many homeowners are looking to home equity lines to help them purchase a second home or investment property.
Tax Deductibility Tips for Primary Residences & Second Home Mortgages
The Internal Revenue Service has released tips for taxpayers regarding capital gains exclusion that is allowed for the sale of their primary residence. Home sales should meet the ownership use criteria. “When the home sale does not meet test requirements, a taxpayer may be allowed to exclude a reduced maximum amount of the gain if he sold the home due to health, a change in place of employment, or other unforeseen circumstances. The “unforeseen circumstances” are for example, divorce, natural disasters resulting in a casualty to the taxpayer’s home, or an involuntary conversion of the taxpayer’s home.”
The IRS also states to homeowners that origination or points paid on a refinanced mortgage are deducted over the life of the loan, except if some of the money was used to finance improvements. The origination paid may be fully deductible in the year the points were paid.
To learn more about home mortgage interest, please visit: irs.gov/publications/p936 see (IRS TAX TIP 2006-55)
BD Nationwide offers mortgage loan quotes for owner occupied and non-owner occupied homeowners.
- Primary Residence
- Second Home
- Investment Properties
Understand the Laws for Capital Gains and Learn More about Second Home Mortgages.
The number of second homes purchased in the United States has surged by over 100% in the past five years. According to the National Association of Realtors (NAR), there were 405,000 reported second homes in 2000, and by 2005, the count had risen to at least 881,000. This boom in second homes was fueled by historically low interest rates and expanded guidelines for second mortgages, coinciding with the real estate boom and a spike in first-time homeownership.
NAR data suggests that “Baby Boomers” were seeking second homes as investments, and while many homeowners sold their primary residences, they did not always opt for larger, more expensive homes, as changes in tax laws allowed for capital gains exclusion on the sale of their homes.
The average annual income for second home buyers exceeds $100,000, representing over 40% more income than the average homeowner nationwide. NAR also revealed that 45% of second home buyers used savings for their purchase, while nearly 30% financed equity from a previous home with a home equity line or second mortgage.
States with popular vacation destinations, such as Arizona, California, Florida, and Hawaii, witnessed a significant surge in second home purchases. However, Nevada experienced a notable decrease of 284% in home equity financing for second homes between 2022 and 2023.
Despite mortgage rates reaching a four-year peak, a Coldwell Banker Previews Survey indicates that nearly 70% of homeowners with properties valued over $1 million either own second homes or are considering purchasing them. Affluent buyers, particularly younger baby boomers, continue to invest in second homes for both leisure and investment purposes.
Linda’s advice for obtaining a second home mortgage emphasizes the importance of occupancy. Owner-occupied second homes or vacation homes are viewed as less risky by lenders compared to non-owner-occupied investment properties. Lenders typically do not classify a property as a second home if it is located less than fifty miles from the borrower’s primary residence.
Should I Finance a Second Home for Investment Purposes with a Fixed or Adjustable Rate Mortgage?
If you do not have the cash to put down on a second home, but have equity in your primary residence or other property you could utilize it in purchasing your investment property through a home equity loan or 2nd mortgage, and refinancing your current mortgage. Twenty-eight percent of investors with an investment property mortgage used their primary residences to procure down payment funds and you may be able to do the same. If you have not taken advantage of the lower rates since you purchased your primary residence, mortgage financing is something you should consider immediately while the rates are still low even if you are not looking at an investment.
Let BD Nationwide help you find the right Second Home Mortgage at a rate that you can afford. Please complete our quick quote form and a friendly 2nd home lender will contact you promptly with a no cost and consultation with no obligation. Get a free, no-obligation quote today, and start the rewarding journey towards financial freedom!