With its rich history, beautiful beaches, and mouth-watering seafood, it’s no surprise that many people choose to make Maryland their second home. Make sure you know the difference between a “second home” and “investment property” so you can make an informed decision when you apply for your mortgage! 

Second Home:
• This purchase requires a 10% down payment.
• The location of the home must be a reasonable distance away from your primary residence.
• A minimum credit score of 620 is required.
• Your interest rates align with primary residence rates.
• You can’t use the potential rental income to qualify for purchase.
• This home needs to be suitable for year-round use. 

Investment Home:
• This purchase requires a 15% down payment.
• There are no restrictions on the distance of the property from your primary residence.
• A minimum credit score of 620 is required.
• Investment property rates differ from primary residence rates.
• The goal of owning this property is to make money from it and use it as an additional income. 

If you are looking to purchase a home in Maryland and have any questions or concerns, contact us so that we can help you determine the best loan product for you. Not yet pre-approved? Download our app to get the process started today!