2nd Home as a Rental Requirements

[Diana Jing]

I want to buy a rental as a secondary home for 10% down financing, and lower interest rate. How long do I actually have to occupy it to meet lender requirements?  I know the lender has a disclosure I have to sign stating I plan to occupy the home at least part of the year, I just don't see any specific timeline associated with this.  So I was curious if anyone knows more specifics on this topic?  I know you are allowed to buyer a secondary home and rent it out, but I'm not sure if that means I can occupy it for two weeks, and rent it out the rest of the year or what?  The lender language just states "I intend to occupy the home for at least part of the year for the first year."

Any insight on this would be appreciated! 

[Steven Foster Wilson]

Originally posted by @Diana Jing:

I want to buy a rental as a secondary home for 10% down financing, and lower interest rate. How long do I actually have to occupy it to meet lender requirements?  I know the lender has a disclosure I have to sign stating I plan to occupy the home at least part of the year, I just don't see any specific timeline associated with this.  So I was curious if anyone knows more specifics on this topic?  I know you are allowed to buyer a secondary home and rent it out, but I'm not sure if that means I can occupy it for two weeks, and rent it out the rest of the year or what?  The lender language just states "I intend to occupy the home for at least part of the year for the first year."

Any insight on this would be appreciated! 

With most conventional occupant loans, you need to have the "intent" to occupy the home for at least 12-24 months. However that does not mean you "need" to. Lets say you buy an owner occupant home, and you switch jobs after one week and move away, you can rent out the place.

However let it be known that lying on a mortgage application is fraud. If you plan on immediately renting it out, then you need to get an investment loan.