Second Home Guidance Needed

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Hello BP Community,

Looking to get some guidance/help.

So just to give a quick background of my dilemma:

I’m new to investing and am in the process of purchasing my first piece of investment real estate. For the financing part of this, I’m using a conventional loan with 5% down and paying all closing costs. On the loan documents, it will be classified as a second home and not as an investment property. After closing, there is a chance that I will do short term rentals (it’s currently zoned for that) when I’m not using the property for myself. The bank is giving me a hard time about this - they’re almost strong arming me into saying that I won’t ever use it as an investment... just personal use only.

My question is this: Can the bank, after closing, perform a spot check to see what I’m using the home for? And let’s say that at that particular time, I’m doing a short term rental... can they sue me, terminate our loan agreement, etc.?

Any feedback would be greatly appreciated!