Have you considered buying a second home? A secondary property can be a great investment in your future. It can also help you earn additional income and provide a retreat from everyday life.

If you’ve been thinking about purchasing a second home, here are some considerations to bear in mind, plus tips for getting started.

Deciding where to purchase your next property is a major decision. Should you get a home close to your family? Or would you prefer one on a beach, in the mountains or in a city you love?

It’s important to discuss locations with your spouse and other family members who might be included in this decision. From there, spend time researching the best local neighborhoods. Partner with a local real estate agent so you find the best areas for a second home. Plus, this makes the first step of the home buying process, preapproval, much easier. Doing research ahead of time about your new location, teaming up with a real estate agent in that area and calculating your finances within the new area will show upfront initiative to your lender as you navigate the mortgage process for your second property.

Some buyers already have a clear vision for their second home before making their purchase, but it’s OK if you’re not sure. Consider your options – it may even change your location. It’s important to note that with Rocket Mortgage®, the property may qualify as a second home if it’s rented out for no more than 180 days in a calendar year. You must also reside in the home for either 14 days or 10% of the days the property is rented, whichever is greater.

• Vacation home: If you have a large family, you vacation often, or simply want your own spot to call home when you’re away, a vacation property might be what you’re looking for. You should choose a location you love visiting and exploring. For many, jumbo loans or conventional loans are the best option for a vacation home mortgage. It’s important to remember this mortgage process is similar to taking out a loan on your primary home, just with slightly stricter requirements.
• Secondary residence: Does your job require a good deal of travel or time spent in another city? You might consider using your property as a secondary residence.
• Investment property: Some homeowners will buy a second home as an investment property. Typically, this means either flipping and reselling the home, or turning it into a rental property. Investment properties have different requirements and mortgage rates for second homes. For example, many homeowners cannot use a jumbo loan to finance an investment property, as many lenders consider it an “investment” if rented out more than 14 days of a year. This is opposed to a conventional loan where you can rent your second home for up to 6 months. Federally backed loans such as FHA loans and VA loans are also out of the question. Make sure to discuss in detail with your mortgage professional to make sure your mortgage matches your goals. At Rocket Mortgage, you can get a jumbo loan on an investment property starting at a 20% down payment depending on the number of units you want.

You can use your second home for any combination of the above. You could vacation there for a designated period of time and rent it out via Airbnb and short-term leases for the rest of the year.