Loan types don't depend on architectural style. What matters is how you plan to use that home.
Whether you'll use the home as your primary residence or not can affect your eligibility for different loans.
Government-backed options usually require you to use a home as your primary residence in order to qualify, although that doesn't mean buying a larger, multi-unit home is off the table.
Occupancy Requirements By Loan Type: The Basics
| Loan Type |
Primary Residence |
Second Home |
Investment Property |
| Conventional |
Yes |
Often yes |
Often yes |
| FHA |
Yes |
Generally no |
Generally no |
| VA |
Yes |
No typical use case |
No typical use case |
| USDA |
Yes, in eligible rural areas |
No |
No |
What Types of Homes Can You Buy With a Conventional Loan?
Conventional loans are usually the broadest category for occupancy.
Conventional loans can usually be used for second homes and investment properties, depending on your qualifications.
That does not mean every conventional borrower qualifies for every property scenario. But if you are buying something other than a primary residence, conventional financing is usually where the conversation starts.
What Types of Homes Can You Buy With an FHA Loan?
FHA is built around owner-occupant use.
HUD’s Single Family Housing Policy Handbook is the governing source for FHA single-family policy, and FHA products are generally designed for primary residences rather than second homes or pure investment properties.
You can, however, get a property with up to four units with an FHA loan as long as you qualify. You just have to live in one unit.
For many buyers, that makes FHA a practical fit for a first home or another owner-occupied purchase, but not a fit for a vacation home or straightforward rental acquisition.
What Types of Homes Can You Buy With a VA Loan?
VA loans require that the home be used for the borrower’s own personal occupancy. VA also notes that to get a VA-backed home loan, borrowers must meet credit, income, and occupancy requirements.
But like FHA loans, VA loans require you to use the home you're buying as your primary residence.
That makes VA highly valuable for eligible buyers purchasing a primary home, but not a standard path for buying a second home or investment property.
You can also get a multi-unit property of up to four units with a VA loan, as long as you live in one of the units as your primary residence.
What Types of Homes Can You Buy With a USDA Loan?
USDA loans are limited by both location and occupancy.
USDA’s Section 502 Guaranteed Loan Program is for adequate, modest, decent, safe, and sanitary dwellings as the borrower’s primary residence in eligible rural areas.
You'll need to meet both income and location requirements to qualify for a USDA loan, although those loans come with major benefits, like no down payment requirement.
Like other government-backed options, USDA loans require you to use the home you're buying as your primary residence, but you generally can't buy a multifamily home with a USDA loan.
The Bottom Line
When buyers ask what “type of home” they can get with a loan, the most useful answer usually starts with occupancy, not architecture.
Conventional loans are generally the most flexible. FHA, VA, and USDA are much more tied to owner-occupied use, with USDA also limited to eligible rural areas.
Frequently Asked Questions
Can You Buy A Second Home With A Conventional Loan?
Often yes, if the property and borrower meet second-home rules. Freddie Mac says a second home generally must be suitable for year-round occupancy.
Can You Use FHA For An Investment Property?
Generally, FHA is intended for primary residences, not straightforward investment-property financing.
Can You Use A VA Loan For A Vacation Home?
VA loans are designed for personal occupancy, so they are not the standard loan choice for a vacation home.
Does USDA Allow Second Homes?
No. USDA guaranteed loans are for eligible rural properties that will be the borrower’s primary residence.
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