Home equity loan on a second home

CapCenter's fixed-rate home equity loans are available on one-unit, single-family primary residences and second homes. Loan amounts run from $50,000 to $250,000, with 15, 20 or 30-year terms. Condos, 2-4 unit homes and manufactured homes aren't eligible, even as second homes.

Lenders treat a home as a second home when you live in it for part of the year and it's suitable for year-round use. It shouldn't be rented out full time or run as a business. If you rent it most of the year, it's more likely an investment property, which follows different rules.

Many lenders also expect the home to be a reasonable distance from your primary residence, such as in a vacation area, and to be under your control rather than a rental company's.

Be accurate about how you use the home when you apply. Your loan consultant can help you understand which category fits.

• Your first mortgage must have been in effect for at least six months before closing
• The home can't have been listed for sale in the six months before you apply
• The first mortgage can't be a HELOC, a reverse mortgage or in forbearance
• You need a credit score of at least 620 for a CapCenter loan

Second homes can carry a slightly higher price than a primary residence, sometimes through the rate or an upfront fee. CapCenter's home equity loans come with ZERO Closing Costs (restrictions apply), which keeps lender costs out of the picture. Ask your loan consultant for a quote on your property.

• Renovating or furnishing the second home
• Major repairs, like a roof or new systems
• Consolidating higher-rate debt
• Helping with a large expense elsewhere

A home equity loan adds a payment on top of your first mortgage, taxes, insurance and upkeep for the second home. Make sure you can carry all of it during a slow year. Also check that your insurance on the second home stays in place and fits how you use it.