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Correct answer: A second home must be suitable for year-round occupancy and intended for the borrower's personal use
Fannie Mae and Freddie Mac guidelines define a second home as a property the borrower occupies in addition to their primary residence, typically for recreational or personal use, and it must be suitable for year-round occupancy. The borrower must intend to occupy the property personally, not rent it out as a primary income stream. "s personal use" is incorrect — there is no specific mileage requirement in the definition, though the property must be in a location that logically makes sense as a vacation or second home. "s primary residence" is incorrect — using a property management company and renting it out regularly would classify it as an investment property. "A second home requires a minimum 25% down payment un..." is incorrect — a 25% down payment is typically associated with investment properties, not second homes, which generally require only 10% down.
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