Yes — and here’s how to make it work.

Whether you’re buying a vacation home by the lake or building a rental portfolio, you’re probably wondering:

👉 “Can I use a conventional loan to buy a second property?”

The answer is yes — and conventional loans are actually the go-to mortgage for both second homes and investment properties.

Let’s break down how it works, what you’ll need to qualify, and how to make the most of your next real estate move.

---

🏠 What Counts as a Second Home vs. Investment Property?

✅ Second Home

• Must be occupied by you for part of the year
• Typically located a reasonable distance from your primary residence
• Not rented out more than 14 days/month (in most cases)

Examples:

• Vacation homes
• Seasonal residences
• Family-use properties

✅ Investment Property

• Property purchased for income purposes (long-term rental, Airbnb, etc.)
• Not owner-occupied
• Typically requires stronger financials

---

💰 Down Payment Requirements

Property Type	Minimum Down
Primary residence	3–5%
Second home	10%
Investment property	15–20% (depending on units and loan type)

💡 Putting 20–25% down on an investment property can improve rates and eliminate PMI.

---

💳 Credit & Debt Guidelines

To qualify for a conventional loan on a second home or rental property, you’ll generally need:

• 620+ credit score (higher preferred)
• Low debt-to-income ratio
• Strong reserves (cash savings to cover mortgage payments)

📘 We’ll walk you through exactly how much you’ll need based on your full financial picture.

---

📊 Can You Use Rental Income to Qualify?

Yes — in many cases, you can use anticipated rental income to help offset the mortgage payment on the new property.

This can:

• Lower your debt-to-income ratio
• Help you qualify more easily
• Strengthen your investment strategy

🧠 We can also help you structure purchases using lease agreements, appraiser rent comps, or other documentation lenders accept.

---

🧾 What About Multi-Unit Properties?

You can use a conventional loan to buy:

• A 2–4 unit property
• As long as it meets Fannie Mae/Freddie Mac guidelines
• And you meet credit, down payment, and reserve requirements

You can live in one unit (as a primary or second home) and rent the others — a great way to offset costs and build equity faster.

---

🏢 Why PRMI?

As a direct lender, PRMI helps you:

• Navigate second home vs. investment loan rules
• Compare conventional loan structures based on your goals
• Close quickly — no delays, no broker middlemen

We also offer non-QM loan options for buyers who don’t qualify traditionally (bank statements, DSCR, etc.).

---

👇 Ready to Buy a Second Home or Investment Property?

Let’s look at your credit, income, and cash flow — and build a plan that works for your next move.