Buying A Second Primary Residence May 2026

If you rent it <14 days/year, income is tax-free.

Buying a second primary residence—often called a "secondary" or "vacation" home—is a major financial move. While you can only have one legal primary residence for tax purposes, you can own a second home that functions as a personal residence rather than an investment property. Financial Prerequisites Lenders typically require 680–720+. Low DTI: Debt-to-income ratio should stay below 43%. Substantial Down Payment: Expect to pay 10%–20% upfront. buying a second primary residence

📍 The IRS generally allows you to deduct mortgage interest on up to $750,000 of total debt across both homes. If you rent it Buying a second primary

Second homes often require higher "hazard" or flood coverage. Low DTI: Debt-to-income ratio should stay below 43%

Usually deductible up to a $10,000 total limit (SALT).

If you’re ready to dive deeper into the or need a breakdown of tax benefits for your specific state, let me know!

Check local HOA rules on short-term rentals.