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Mortgage Glossary

Vacation Property

Mike Starr·Reviewed August 2026

A vacation property (also called a second home) is real estate used for personal enjoyment — such as a beach house or mountain cabin — rather than as a primary residence or rental property. Lenders require a minimum 10% down payment and slightly higher rates than primary residences. To qualify as a second home (not an investment property), the owner must occupy it for a portion of the year.