Home Buying in Boston>Question Details

Larry Strain, Home Buyer in Sandy Springs, GA

Primary or Secondary Home Loan

Asked by Larry Strain, Sandy Springs, GA Tue May 7, 2013

I rent an apartment in ATL but want to buy a home in Boston. I travel extensively in the Southeast for work (70% ) and need to keep my apartment in ATL. Since I don’t own a home in ATL but have a lease obligation there, can I classify my future Boston home purchase as a ‘2nd home’? I am having some difficulty with the mortgage underwriter and need some advice on how I should classify the loan type. For a primary mortgage they want me to prove that I reside in Boston however I’ll be spending less than 50% there due to my travel schedule. Should I try for a ‘2nd home’ type mortgage loan on this property? Is this even the proper name for the loan? What pitfalls should I avoid?

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3
Great answers below. Please feel free to contact me when you have a better idea about financing considerations. I will be happy to help with your home search.

Thanks Kenzo
0 votes Thank Flag Link Wed May 8, 2013
Where is your loan officer in all this? He or she should be helping you determine this in helping you present your case for the underwriter.

As long as you're putting down 10%, a mortgage classified as a second home is no different than a primary mortgage.

Traditionally though, a mortgage on the second hole is a hold typically located in a resort area near the water or some place like that.

Since you do travel extensively for work I think you could make an argument that it's a primary residence or second home. Your loan officer should be more involved.

Rshapiro at assetmortgage dot net
0 votes Thank Flag Link Wed May 8, 2013
They will definitely look at that situation as a second home due to the reasons you stated above. Don't know how much you were planning on putting down, however the only limitation is you will need at least 10% down for a second home. Rates on second homes are no different than primary, just a bit more restrictive on down payment.
0 votes Thank Flag Link Wed May 8, 2013
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