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.

It is possible to move in and rent out a room in your home for company and tax purposes. However, if the property is a second/vacation home, there may be different mortgage requirements. It is essential to report rental income on your tax returns and be aware of local laws and regulations. Also, certain expenses such as maintenance and repair costs, property taxes, and mortgage interest may be deductible.