Finance a mountain home you'll use and rent

You can rent it occasionally. You must personally use it for part of the year and keep exclusive control. It can't be subject to an agreement that gives a management company control over occupancy, and the rental income can't be used to qualify. If you'll mostly rent it and rarely visit, it should be financed as an investment property.

Second-home loans are often priced better and allow a lower down payment (as little as 10%) than investment-property loans (typically 15–25%). The actual pricing difference depends on your credit, down payment and the market. Second homes must be for your own use part of the year; investment properties have no personal-use requirement, and rental income can often help you qualify.

For a second-home loan, show the property is realistically a second home that you'll use personally. Credit, debt-to-income and down payment requirements vary by lender, with 10% as the conventional minimum down. For an investment property, expect 15–25% down; rental income can often help you qualify.

Not with a second-home loan. With a conventional investment-property loan, a portion of the rent (commonly 75%) can usually be counted. With a DSCR loan, the lender qualifies the loan on the property's rent instead of your personal income; how short-term rental income is estimated varies by lender.

It depends on how many days you rent the property and how many you use it yourself. The IRS has specific rules, including a 14-day / 10% personal-use test and a rule that rentals of fewer than 15 days a year generally aren't reported. These are tax rules, not mortgage rules. Talk to a tax professional about your situation.

It depends on how you'll actually use it. If you'll use it often and rent only occasionally, second-home financing usually costs less. If rental income is the priority, or you want a property manager running it, investment-property or DSCR financing is the right fit. The classification has to match your real intended use.