Buying a second home is an exciting step—whether it’s a cozy weekend getaway, a future retirement spot, or a property that brings in extra income. But before you start browsing listings, it’s important to understand how your intended use affects how the home is classified — and what that means for your mortgage, taxes, and more.
Let’s break it down.
A vacation home is a property you plan to live in for part of the year — not full-time, and not just as a rental. While it’s perfectly fine to rent it out when you’re not there, the key difference is that you can’t rely on that rental income to help qualify for your loan.
You stay there yourself for part of the year
It’s not rented out full-time
It’s a one-unit property, livable year-round
You maintain full control — no timeshares or third-party management
It’s located a reasonable distance from your primary residence
Lenders may also limit how many days per year you can rent it out. Be sure to ask your lender about specifics.
If you rent the property out for more than 14 days a year, that income is taxable (per the IRS). But you may also be able to deduct related expenses — like mortgage interest and maintenance — as long as you’re using the property yourself for no more than:
Taxes can get complicated quickly, so it’s best to check with a CPA before moving forward.
An investment property is purchased solely to earn income. It’s not meant for personal stays — your goal here is to rent it out full-time and treat it like a business.
You don’t use the property for personal stays
It’s rented to tenants to generate income
You have more flexibility when it comes to deducting maintenance and operating costs
You may work with a property manager or short-term rental platform like Airbnb or Vrbo
Since the property is treated as a full-time rental, the income it generates is fully taxable. But on the upside, you’ll have more freedom to deduct expenses like repairs, insurance, advertising, and more.
Buying a second home you plan to enjoy but also rent out occasionally? That’s where things can get a little murky. Both your lender and the IRS have specific rules that determine how the property is classified — and it can affect your financing options, tax liabilities, and rental flexibility.
In short: how often you use the home vs. how often it’s rented matters a lot. If your goal is to enjoy the space occasionally and earn some rental income on the side, make sure you’re clear on the boundaries.
A second home can be a great lifestyle upgrade or a smart financial move — but it comes with added responsibilities. You’re not just buying another house — you’re managing another set of taxes, bills, and maintenance tasks.
Before you buy, talk to a Mortgage Loan Officer at Greenway Mortgage about how the home will be classified, and connect with a tax advisor to understand any implications based on how you plan to use the property.
888.616.9885
Note: The information provided here is general and for informational purposes only. Always consult a qualified tax professional and your lender for advice tailored to your unique situation. *Internal Revenue Service, “Topic No. 415 Renting Residential and Vacation Property.
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It’s human nature to proceed with caution when you perceive risk—especially when others are doing the same. And in today’s real estate market, caution seems to be the name of the game. Many are hitting pause, holding off on buying or selling because they’re unsure of what’s ahead.
But here’s the thing: the market isn’t in crisis. What we’re seeing is a shift—a return to a more balanced environment after a period of extreme conditions.
Before you decide to sit on the sidelines, ask yourself: Will following the crowd help you reach your goals—or could being the exception give you a better outcome?
Home prices are high, yes—but many sellers are motivated. That means there’s room to negotiate on price, closing costs, or even a rate buydown that can reduce your monthly payment.
Interest rates are higher than they were in 2020 or 2021, but that was an anomaly. Historically, today’s rates are still below the 50-year average. Many successful buyers and investors purchased homes when rates were higher than they are now—and they built equity and wealth all the same.
See historical rate data here.
There’s no substitute for having a place to call your own. Whether it’s a condo, a single-family home, or a multi-unit property, owning your home puts you in control of your living situation—and your financial future.
When you own your home, you're not just making a monthly payment—you’re making progress. You’ll have:
The opportunity to build equity with each payment
The freedom to personalize and improve your space without needing permission
More stability in housing costs and living arrangements
Potential tax advantages, like deductions for mortgage interest and property taxes (speak with your tax advisor for more info)
A path to long-term wealth: Homeowners have a net worth nearly 40x greater than renters on average
Source: Federal Reserve Survey of Consumer Finances
There’s no such thing as a “perfect” time to buy a home. But waiting for the market to feel safe or “normal” again could mean missing out on opportunities that are available right now.
Whether you’re ready to buy your first home, move up to something bigger, or make a strategic investment, talking through your options is a smart first step. The numbers, the market, and your goals all matter—and Greenway Mortgage is here to help you make sense of them.
Reach out today and let's chat about what’s possible. You might be surprised at what’s within reach. 888-616-9885
Need funds for a renovation, debt payoff, or big expenses but don’t want to jump through hoops to get them? Your home’s equity might be the answer.
Greenway’s new Digital Home Equity Line of Credit (HELOC) puts speed, simplicity, and flexibility at your fingertips.
This is not your typical home equity line of credit. With a 100% online application, fast funding, and zero out-of-pocket costs, our Digital HELOC is the streamlined solution homeowners have been waiting for.
100% Online Application
No need to visit a branch. Apply securely from your home at any time.
Fast Funding in as Few as 6 Days*
Once approved, receive your funds quickly so you can move forward with your plans.
Borrow Between $25,000 and $400,000
Flexible loan amounts tailored to your home equity.
Lower Interest Rates Compared to Credit Cards and Personal Loans
Save money by using your home equity instead of high-interest alternatives.
No Out-of-Pocket Costs or Prepayment Penalties
Transparent terms with no surprise fees, plus full disbursement at closing.
Wide Property Eligibility
Available for primary residences, second homes, investment properties, and both warrantable and non-warrantable condos.
A home equity line of credit offers flexible borrowing power that can adapt to many financial needs, such as:
Home Renovations and Home Improvements
Upgrade your kitchen, finish the basement, or finally replace that roof—with funds that could add long-term value to your home.
Debt Consolidation
Combine higher-interest debts like credit cards into one lower-rate payment.
Major Expenses
Cover tuition, medical bills, or other significant costs with ease.
Emergency Funds and Financial Flexibility
Keep funds accessible for life’s unexpected moments or opportunities.
Unlike credit cards or personal loans, a HELOC lets you borrow against the equity in your home—often at significantly lower interest rates and with more borrowing power. But what sets Greenway’s Digital HELOC apart is the ease and speed of our online process. Instead of gathering paperwork, scheduling appointments, and sitting through meetings at a bank, you can apply securely from anywhere, anytime. It’s a faster, more convenient way to access your equity—without sacrificing personal support. From application to funding, everything is streamlined to save you time and stress, so you can focus on moving forward with your plans.
Owning a home gives you options. Our Digital HELOC helps you use them.
Whether you’re ready to apply or just want to explore how much you could borrow, Greenway Mortgage is here to help.
Reach out today to learn more. 888-616-9885
*Eligibility requirements, exclusions and other terms and conditions apply. Certain states have rate, term and guidelines restrictions. Approval may be granted in five minutes but is ultimately subject to verification of income and employment, as well as verification that the property is in at least average condition with a property condition report. Six business day funding timeline assumes closing the loan with our remote online notary. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing. Contact a Greenway Mortgage Loan Officer for complete details. Greenway Mortgage Funding Corp, NMLS#374480, 107 Tindall Road, Middletown, NJ 07748. Licensed by the N.J. Department of Banking and Insurance. Licensed by the PA Dept. of Banking and Securities. CT Licensed Mortgage Correspondent Lender. Licensed Mortgage Banker NYS Dept. of Financial Services. For complete licensing info go to www.nmlsconsumeraccess.org. Equal Opportunity Lender.
In today’s market, many homeowners are sitting on significant equity—but aren’t eager to give up the low mortgage rate they locked in a few years ago. That’s where a Home Equity Line of Credit (HELOC) comes in.
A HELOC offers a simple, cost-effective way to access the equity you’ve built in your home—without refinancing your first mortgage. Whether you’re consolidating debt, tackling home improvements, or planning for major expenses, a HELOC gives you flexibility and control.
A Home Equity Line of Credit is a revolving credit line that lets you borrow against your home’s equity—similar to how a credit card works. You can draw funds as needed, up to a set limit, rather than taking out one lump sum upfront.
There are two key phases of a HELOC:
Draw Period – Typically 5 to 10 years, this is when you can borrow from the line and make interest-only payments on what you use.
Repayment Period – After the draw period, you begin paying back both the principal and interest, and you can no longer draw additional funds.
In a high-interest environment, a HELOC can be an attractive alternative to refinancing. If you already have a low mortgage rate, a HELOC allows you to keep it in place while still tapping into the cash you need.
Here are a few reasons why homeowners are turning to HELOCs right now:
Avoid Refinancing Your First Mortgage: If your current rate is much lower than today’s market rates, a HELOC lets you borrow without losing your low-rate first mortgage.
Lower Interest Rates Than Credit Cards: Most HELOCs carry significantly lower rates than consumer credit cards, making them a smart option for paying down high-interest debt.
Only Borrow What You Need: You don’t have to pull the full amount up front—you can borrow as expenses come up, giving you control and flexibility.
Fewer Upfront Costs: HELOCs generally have lower closing costs and a faster approval process than a full mortgage refinance.
HELOCs can be used for virtually anything—but using them strategically can help strengthen your long-term financial picture.
Here are some common use cases:
Home Improvements: Upgrade your kitchen, finish your basement, or add a deck. Not only will your home be more enjoyable, but the improvements could boost its resale value. (Bonus: some improvements may offer tax advantages—check with your tax advisor.)
Debt Consolidation: Transfer high-interest balances (like credit cards or personal loans) to your HELOC to simplify payments and reduce your interest rate.
Emergency Fund or Opportunity Reserve: You don’t need to use the funds right away. Many homeowners establish a HELOC just to have a financial cushion for unexpected costs or future investment opportunities.
Education Costs: Cover tuition, housing, or travel expenses for a child’s (or your own) education—with flexible repayment terms.
Down Payment on a Second Home: Use your primary home’s equity as a springboard for buying a vacation property or investment real estate.
As with any financial tool, it’s important to weigh the potential downsides:
Variable Interest Rates: HELOCs often have rates tied to the prime rate, which means your payment could go up if interest rates rise.
Your Home Is Collateral: A HELOC is secured by your home, so failing to repay it could put your property at risk.
Market Risk: If home values decline, you could end up owing more than your home is worth—especially if you’ve tapped a large portion of your equity.
A HELOC may be a good fit if you:
Want access to funds but don’t want to refinance your low-rate first mortgage
Prefer the flexibility of borrowing over time instead of a large lump sum
Have plans for home improvements, debt consolidation, or large expenses
Want to create a financial backup plan or reserve for the future
Let’s Talk About Your Equity Strategy
If you’re wondering whether it makes sense for you, our Loan Officers are here to help you evaluate your options and find the right fit.
We offer a variety of HELOC solutions, including digital options that make applying and managing your line of credit fast and convenient. Whether you’re planning a big project, consolidating debt, or just want a flexible financial safety net, we’ll help you put your home equity to work—on your terms. Let’s connect and find the right HELOC strategy for you.