Port St Lucie Mortgage Experts (772) 340-4003 - Purchasing a Second Home
16748
page-template-default,page,page-id-16748,ajax_fade,page_not_loaded,,qode-child-theme-ver-1.0.0,qode-theme-ver-17.0,qode-theme-bridge,wpb-js-composer js-comp-ver-5.5.5,vc_responsive
 

Second/Vacation Home

Purchasing a Second Home

 

second home - mortgage - couple having dinner at home

 

When purchasing a second home, you may need a higher credit score to qualify for a mortgage, and you might receive a higher interest rate due to increased risk for the lender. On the other hand, it may be that neither of these things happen – each situation is different. A second home has the following characteristics:

 

  • It must be a reasonable distance from your primary residence.
  • It must be exclusively under your control and not subject to a rental, timeshare or property management agreement.
  • You must live there at some time during the year. While someone else can live in your home other than yourself, some lenders may place limits on how long the home is occupied without you living there.
  • The property must be accessible by car year-round.

 

You can even rent it out for up to two weeks and keep the income tax free. If you rent for 15 or more days, you’ll have to report the income, but you may be able to deduct certain things as a rental expense. It’s important to note that either your lender or the investor in your mortgage may place special limits on how often the property can be rented out.

 

Second homes also qualify for the mortgage interest tax deduction, although if you’re renting it out, you have to be careful. In order to qualify for the deduction, you have to use the home for 14 days or more than 10% of the days when you would normally rent it out.

 

For example, if you rented out your home in Florida for six months between May and October (inclusive), you would still be able to classify your home as a second home for tax purposes if you stay there more than 18 days. (For convenience sake, I’m assuming six months is 180 days.) A timeshare used in this way also qualifies for the deduction.

 

That’s all, folks! Hopefully this has helped you understand a little bit more about property classification and home mortgages.

 

Give us a call with any questions.

 

More Information on second homes

 

H&R Block
Second Home

CALL NOW 772-340-4003

Port St Lucie Mortgages, VA Home Loans & Mortgage Refinancing throughout the Treasure Coast and all of Florida

Port Saint Lucie • Fort Pierce • Sebastian • Stuart • Vero Beach • Sewall's Point • Palm City • Jensen Beach • Hobe Sound • Lakewood Park • Port Salerno • Fort Pierce South • White City • North River Shores • & serving all the great state of Florida

Palm Beach Mortgages, VA Home Loans & Mortgage Refinancing throughout Palm Beach County and all of Florida

West Palm Beach • Boca Raton • Boynton Beach • Delray Beach • Wellington • Jupiter • Palm Beach Gardens • Greenacres • Lake Worth • Royal Palm Beach • Riviera Beach • Palm Springs • Belle Glade • North Palm Beach • Lantana • Palm Beach • Lake Park • Pahokee • Tequesta • South Bay • & serving all the great state of Florida

Broward Mortgages, VA Home Loans & Mortgage Refinancing throughout Broward County and all of Florida

Fort Lauderdale • Pembroke Pines • Hollywood • Miramar • Coral Springs • Pompano Beach • Davie • Plantation • Sunrise • Deerfield Beach • Lauderhill • Weston • Tamarac • Margate • Coconut Creek • Oakland Park • North Lauderdale • Hallandale Beach • Lauderdale Lakes • Dania Beach • & serving all the great state of Florida

Miami Mortgages, VA Home Loans & Mortgage Refinancing throughout Miami-Dade County and all of Florida

Miami • Hialeah • Miami Gardens • Miami Beach • Homestead • North Miami • Coral Gables • Doral • North Miami Beach • Cutler Bay • Aventura • Miami Lakes • Palmetto Bay • Hialeah Gardens • Sunny Isles Beach • Pinecrest • Opa-locka • Miami Springs • Sweetwater • Key Biscayne • & serving all the great state of Florida

Florida Mortgages, VA Home Loans & Mortgage Refinancing throughout all the great state of Florida

Jacksonville • Tampa • St. Petersburg • Orlando • Tallahassee • Cape Coral • Gainesville • Clearwater • Lakeland • Deltona • Largo • Melbourne • Fort Myers • Daytona Beach • Kissimmee • North Port • Ocala • Port Orange • Sanford • Pensacola • & serving all the great state of Florida