Vacation vs investment loan

[Chris Seveney]

Searching the current rates at my credit union, I notice they have more programs and much lower closing costs for vacation/2nd homes versus investment properties My question is, are there criteria that determines what a vacation home vs an investment loan is ? Of course my preference would be to get funding for investment properties classified as 2nd / vacation properties because the $ is cheaper but curious for those lenders out there what is the difference / criteria I know I could ask the lender but I would rather get opinions on this site first. Note that from a qualification standpoint - I can qualify for property without needing any income on it