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Where Is Better Mortgage Located – How Property Type Impacts Your Mortgage | Primary Home, Second Home, Investment Home | Better

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Your property type impacts your mortgage and the interest rates you’ll be offered. Property type also influences the requirements you’ll need to meet to be approved for a mortgage. Here we break down which properties qualify as a primary residence, a second home, and an investment property.

A primary residence, aka a primary home, is typically defined by lenders as the place where you’ll most likely live and spend most of your time. The home must be located within a reasonable distance from your place of work and within 60 days of closing on the home, you must begin living in the home.

A second home is known by many as a vacation home. One of the main conditions for a property to be considered a second home is that you must live in the house for some or part of the year. If you choose to buy a home that’s too close to your primary residence, a lender may classify it as an investment property.

An investment property is what your new home purchase would be classified as if it is within 50 miles of your primary residence, you don’t plan to live in the property (perhaps because your goal is to rent it out), and/or you intend to earn a profit by flipping the property.

From a lenders perspective, a mortgage for each of these types of home has its own risks. The difference in risk translates to different interest rates and what percentage of the asking price makes an acceptable down payment.

Read the full article to learn how to get a mortgage for each property type : https://better.com/content/primary-residence-second-home-or-investment-property-whats-the-difference/

If you’re considering buying or refinancing a property, in as little as 3 minutes you can get pre-approved with Better Mortgage and our Loan Consultants can tell you how your property will be classified: https://better.com/start

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