mortgage rates for second home vs investment properties

[Manish Shah]

Hello,

I am looking to purchase a property as second home. I understand the mortgage rates are lower for second home compared to investment property.

If I decide to rent this property in the future for any reasons (airbnb or leased), is that illegal? What are the consequences?

Thanks

Manish

[Dan Barli]

Hi @Manish Shah you can certainly rent out the second home in the future, but if you are closing on the property with the intent to have it as an investment property, I would caution you against doing that. You should INTEND for that property to be a second home for yourself at the time of closing. If things change and you choose LATER to make that an investment property, that's another story.