To lenders a second home is a property you would visit part of the time--like at the beach. This would be an investment property. To get a new loan on this property you would need to put down at least 20% and yes a 30 year loan is available. Today's rates would be in the high 5's. You might have to pay a discount point for the rate in the 5's. The HELOC would be a great opportunity, but think down the road on the inheritance. Would both homes be going to this family member? If not then the one who inherits your primary residence will pay for the home of the family member. If the loan for the family member's home is on that home that keeps things straight. A term life policy could solve the pay off of the property at your death.

Sally W. Hamby
Pine State Mortgage