second residense - Posted by MJS(sjca)

Posted by Dave T on November 02, 1998 at 21:45:19:

Since I operated the property as a rental, I included all rental income, operating expenses, mortgage interest, and depreciation on a Schedule E.

If I did not operate the property as a rental, but instead, maintained the property as a second home or part-time residence. then only mortgage interest and property taxes would be deductible on Schedule A and only if I itemized deductions.

second residense - Posted by MJS(sjca)

Posted by MJS(sjca) on October 30, 1998 at 12:27:38:

If a person had a property to refinance and the re-finance people said they could get a loan as a second residence, non-owner occupied.
Can this be done?
And what are the consiquences?

Re: second residense - Posted by Dave T

Posted by Dave T on October 30, 1998 at 21:37:35:

In my own case, I contracted to build my retirement home almost two years before I actually moved in. Six months after the contract was signed, the house was completed and I went to closing. I then rented out the property for 12 months before actually moving in myself.

The bank gave me a loan for a second home at the same interest rate as a primary residence loan. Initially they wanted 30% down but I was able to negotiate for 20% down because I was a repeat customer and my FICO score was 850 at the time.

On the negative side, the mortgage payments for two homes were used to calculate my “back end” ratio and the bank wanted a larger down payment than they might normally require for a primary residence (95% financing was out of the question).

Perhaps others can elaborate further.

Re: what about taxes? is it - Posted by mjs

Posted by mjs on November 02, 1998 at 16:47:01:

What about taxes is it fully deductable or ?.
How does uncle luuk at it?