NLIC.org

Phillip Said:

what qualifies as a second home for mortgage loan?

We Answered:

Yes! Well... no, not since you just told us it will be rented out. Investors will consider it a second home if it is;

A) not going to be rented out.
B) farther than 50 miles from you primary residence.
C) in a place where people would typically vacation.

Eduardo Said:

Is it possible to get a second home mortgage?

We Answered:

Yes, of course, most adults over 40 or so have multiple mortgages. There is nothing at all unusual about that. Obtaining 2-4 is easy, after that it gets tougher.

Pauline Said:

Buying a second home, mortgage loan questions?

We Answered:

You don't have to put 20% down, you just have to put 20% down to avoid paying private mortgage insurance. His owning another home (free and clear) won't relieve the down payment requirement or the private mortgage insurance requirement.

He could (and I'm not saying should, just could) take out a HELOC (home equity line of credit) on the original house and use it for the downpayment on the second house and then take out a conventional mortgage on the second house.

I do have to agree with one of the other answers though... It's tough to mix family and business. What happens if you want to move or relocate to another area? Does your dad now sell the house? Does he really want to be a landlord? If the furnace failed in this second house will Dad expect you to pay? This is a tough situation!

good luck!

Becky Said:

Is it easy to buy a second home mortgage wise?

We Answered:

Salaam Nader,

You can get into great loan programs with 10% down. Ideally you would like to put 20% down, but 10% would suffice. And no, you can go stated regarding employment.

Talk to a mortgage broker in your area for advice regarding your specific situation. If you're in California, let me know and I'll have my loan consultant contact you.

Regards

Jimmy Said:

Mortgage on primary home to buy second home, can i deduct taxes?

We Answered:

your best answer would be to contact either the IRS directly or a tax preparer in your area. Tax issues are not something you want to get an unauthorized opinion on.

Warren Said:

Is the interest on my second home mortgage be an allowable deduction from income tax?

We Answered:

As a previous person mentioned, you can deduct the interest on a second home (house, houseboat, camper- anything that you can live in) with a $1,000,000 limit on the principal owed. e.g. Assuming interest rates are equal, if the mortgage on your first home is $800,000, you can only deduct the amount of interest relating to $200,000 of principal on the 2nd mortgage. If the rates are different, obviously max out the higher rate to maximize the deduction.