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Fannie Mae & Freddie Mac – Multiple Second Home Properties
Question:
Can a buyer have more than one “second home”?
Answer:
It is true that a borrower may own more than one second home. I know the terminology used by the agencies implies that you can have a primary residence and then a ‘2nd home’. However, if a borrower can qualify with all housing obligations and other debts in their DTI, the agencies do not restrict the borrower from having more than one second home.
There are times when your clients may desire a second home in the mountains, one on the beachfront, and so on.
Of course, a lender will look for red flags for occupancy misrepresentation concerns. Still, if the borrower doesn’t have any major red flags related to that, then it just boils down to whether the borrower can qualify with one or more second homes.