I talked to a loan officer recently and he told me that there were recent rule changes made by Fannie Mae and Freddie Mac.
The gist of it was that secondary homes/investment properties will be more expensive than primary. I understand investment is more expensive than primary but I always thought primary and secondary would be very similar, especially if you don’t have a mortgage on your primary residence.
If you have a primary residence that’s free and clear and you want to buy a second home, would that still be a second home since you have a primary residence or would the loan be considered for primary rates since it would be the only mortgage you would have (since the primary residence is free and clear).
I saw some articles like this as well but also got a little confused so hoping someone can explain better.
http://www.mortgagenewsdaily.com/channels/community/969950.aspx