Second Home Mortgage or Investor Loan... Please help!

[Eric Drum]

We are currently under contract for a home that we are intending to use a short term rental (located more than 150 miles away from our primary residence). We own other investment properties in our local market and have always purchased them using a investment loan (Conventional 20% down higher rate etc.). However, the bank is saying that we could purchase this home as a "Vacation and Second Home" purchase (requiring only 10% down and better rates). We may use the property occasionally if it's not rented but the goal is to rent it out. Is this allowed? And if so, would I still be able to write off the depreciation similar to our other investment long term rentals?.. I know I'm hitting potentially on some legal advice so certainly wouldn't hold anyone to it but wanting some general guidance on what others have done in the space. Thanks in advance for your help and input! 

[John Underwood]

As long as they know what you are doing and are ok with it, then do the 10% down 2nd home loan.

If they aren't aware then this could be considered fraud. 

Just keep some emails showing they were aware of your intentions to use new house as a vacation rental to protect yourself.