Mortgage: Second/Vacation home -> Rental

If I buy a home with a secondary/Vacation home mortgage how much time do I have to live in it before I can rent it out?Also:

  1. What does it mean to live in a house: having utilities in my name? Not claiming any rental income or depreciation on the tax returns?.. or something else?
  2. Can I move in and rent out a room immediately just to have company, and also show that on my tax returns? I am single. Will I be adhering to the second/vacation home mortgage requirements?
  3. What bad things can happen if I turn it into a rental “too soon” and what is the probability of those “bad things” happening?

Why: I can WFH for at least 6 months, so thinking to move from the bay area, CA to live close to the mountains for some time.


Nothing bad about having a rental. The deduction can be used either way.

The mortgage company won’t see your future tax returns, and they won’t find out that your vacation home is a rental. I doubt they care. I had several like that about 10 years ago.

Mortgage rate worsened since last week and may stay worse for a few weeks. Lenders are rushing to include the 0.5% FHFA refinance fee into the pricing. With so many loans, some lenders may not be able to finish the loans on time. Some lenders will charge the 0.5% fee upon extension and some borrowers may not get the rate they locked. It’s going to be a mess.