Third Federal Savings and Loan Association of Cleveland 30 Year Fixed
NMLS #449401 | State Lic: 12345
some text here
- Customer score
Primary vs. second-home mortgage differences
Americans are buying far fewer second homes these days — only about a third as many as during the pandemic. U.S. buyers took out about 86,600 mortgages for second homes in 2024, which is the lowest amount since 2018 and represents just 2.6% of all mortgages taken out that year, according to a Redfin analysis.
However, if you are one of the borrowers looking to get a second home, here are some important characteristics that distinguish them from primary mortgages:
| Primary home | Second home | |
|---|---|---|
| Down payment | Often as low as 3%–5% with conventional loans | Typically requires at least 10% down |
| Interest rate | Lower rates than those for second homes | Slightly higher rates than those for primary homes, typically by 0.5%–0.75% |
| Application requirements | Often 620 minimum credit score for conventional loans, up to 50% DTI, standard income and assets requirements | Typically, 660 minimum credit score, up to 45% DTI (some lenders cap it at 36%), must show the ability to cover both mortgages via income or assets |
| Mortgage programs | Access to government-backed options in addition to conventional loans (e.g., FHA loan, VA loan) | Not eligible for FHA or VA loan; must use conventional loan, all cash or home equity to purchase second home |
