Buying a second primary residence—often called a "secondary" or "vacation" home—is a major financial move. While you can only have one legal primary residence for tax purposes, you can own a second home that functions as a personal residence rather than an investment property. Financial Prerequisites Lenders typically require 680–720+. Low DTI: Debt-to-income ratio should stay below 43%. Substantial Down Payment: Expect to pay 10%–20% upfront.

If you rent it <14 days/year, income is tax-free.

Lenders categorize homes based on your intent. This affects your interest rate: Must be lived in for part of the year.

Must be occupied for the majority of the year.

📍 The IRS generally allows you to deduct mortgage interest on up to $750,000 of total debt across both homes.

Is it for retirement, weekends, or family?

Hire a local property manager or landscaping service.

Prove you can cover both mortgages for 6 months. Mortgage Classifications