Vacation Home Vs. Income Property Mortgage (loan, approved, credit, loan)

[mricu]

I want to purchase property in another state as a vacation home and income property (by renting it out when I'm not there).

I know you can apply for a mortgage either as a income property mortgage, or a vacation home mortgage. Income Property Mortgages are harder to obtain comparatively and usually have points associated with it if you buy a condo. Not so for a vacation property.

My dilema is that I'm sure that I'll be using the property more as a rental than my own personally vacation home.

My credit is very limited in the US so it will be easier for me to obtain a vacation home mortgage (according to my mortgage broker).

I was wondering what are the implications if I get approved for a vacation home mortgage, but end up renting it out as income property during the term of the mortgage? Do the mortgage lenders really care as long as I make my payments on time?

[ColfaxTeri]

Yes, I would think they care or there wouldn't be a difference. Partially due to risk associated with different uses of the property. I can't answer as to the legal side of it, such as fraud on the loan application, you should consult your legal advisor.

[BarbaraTen]

I dont have the specific answer to your question but this gentleman was very helpful in my Vacation Home purchase. Search for Jerry Barker - Vacation Home Specialist

[joe moving]

If you are going to rent more than 14 days a year then it is a rental property for tax purposes, for what it's worth.