Who this article is for
This article is for:
Borrowers purchasing a vacation home
Homeowners exploring loan options for a second residence
Anyone comparing second home requirements with primary homes or investment properties
Can second home buyers apply with Nestwise?
Yes.
Nestwise offers 30-year fixed-rate conventional mortgages for eligible second homes. These loans follow standard Fannie Mae and Freddie Mac guidelines.
Second homes must meet agency rules and cannot be used as investment properties or rental income sources.
What qualifies as a second home?
A second home is typically:
A property you use part-time
A home that is not your primary residence
A property occupied by you (not a tenant)
Located in a place that makes sense as a personal-use property (such as a vacation area or weekend destination)
Second homes must:
Be suitable for year-round living
Be owned and occupied by you for part of the year
Not be subject to a rental agreement or timeshare structure
Down payment and credit requirements
Second homes often require stronger financials than primary residences.
Typical requirements (may vary by borrower profile):
Down payment: Usually 10% or more
Credit score: Minimum 620
Reserves: Multiple months of total housing payments available as assets
Nestwise follows standard agency requirements when reviewing second home loans.
Can a second home generate rental income?
No.
Agency rules do not allow borrowers to classify a property as a second home if:
It will be rented out full-time
It relies on rental income to qualify
It operates like an investment property
If the main purpose is rental income, the property must be treated as an investment property, which has different requirements.
Can second homes be refinanced through Nestwise?
Yes.
Borrowers who already own a second home may apply for:
Rate-and-term refinances
Cash-out refinances (depending on equity and agency limits)