Northern Arizona University: Can a second home be rented like an investment?

DIRECT ANSWER

Original source observation: October 16, 2026. Primary-source review: October 17, 2026. Confirm current dates, costs, eligibility and availability with the linked publisher. Campus facts and general planning guidance do not determine an individual property's lawful use, employment benefits or mortgage eligibility. Fannie Mae guidance applies within its own program scope; other programs and actual loan documents require lender review.

Fannie Mae's second-home requirements include borrower occupancy for part of the year, a one-unit home suitable for year-round use, exclusive borrower control, and no management agreement controlling occupancy. Its page also permits identified rental income without disqualifying the loan as a second home if that income is not used to qualify and all other second-home requirements are met. Disclose the actual rental plan and ask the lender whether it fits second-home requirements or requires investment-property financing; rental income alone is not an automatic investment classification.