Can I buy a second home or vacation property in Wisconsin?
Rob Miller explains the mortgage requirements for buying a second home or vacation property in Wisconsin — down payment, rates, and how lenders classify the property.
Rob Miller, Branch Manager at MadCity Home Loans, explains what Wisconsin buyers need to know before financing a second home or cabin.
Can I buy a second home or vacation property in Wisconsin?
Yes — Wisconsin's lakes, Dells area, and Door County make second home purchases very common here. Here's what you need to know about the financing:
Second Home vs. Investment Property: The Key Distinction
Lenders care deeply about how you intend to use the property. A second home is one you occupy personally for a portion of the year and don't rent out as a primary income source. An investment property is one you rent out consistently. The classification affects your rate and down payment significantly.
Second Home Requirements (Conventional)
- Down payment: Minimum 10% down
- Credit score: 680+ recommended; 620 minimum
- Rates: Typically 0.25–0.5% higher than primary residence rates
- Occupancy: Must be a reasonable distance from your primary home OR be in a typical vacation area
- Rental: Short-term rentals (Airbnb/VRBO) are generally allowed as long as personal use is primary
Investment Property Requirements
- Down payment: Minimum 15–25% down
- Rates: 0.5–0.75% higher than primary residence
- Rental income: Can be used to help qualify (75% of gross rent counted)
Can I Use VA or FHA for a Second Home?
No. VA and FHA loans are strictly for primary residences. You must use conventional financing (or portfolio/DSCR loans) for second homes and investment properties.
Related Post: Interested in investment properties? Read our DSCR Investment Property Loan Guide.