Does renting out my Summit County condo change my mortgage?
Yes. Your rental plans decide whether a Summit County second home loan fits or you need an investment loan, and the line sits in a different spot than most Breckenridge buyers expect.
For example, say you’ve found an $800,000 two-bedroom condo in Frisco. You’ll ski it most weekends and want to rent it when you’re home in Denver. Your loan application asks you to pick one occupancy type, and that one checkbox changes your minimum down payment by $40,000 in this example.
Here’s the part that surprises people. At 20% down, Fannie Mae’s current pricing matrix shows the same occupancy adjustment for a second home and an investment property. The bigger differences are your down payment and how your income gets counted.
This post walks through the Fannie Mae definitions, the down payment math, how a Breckenridge or county short-term rental license fits in, and why you tell your lender everything up front.
What Fannie Mae Calls a Second Home
Most conventional loans in Summit County follow Fannie Mae or Freddie Mac rules. Fannie Mae’s Selling Guide section on occupancy types (B2-1.1-01, dated October 5, 2022) lists what a second home has to be:
- You occupy it for some portion of the year.
- It’s a one-unit dwelling.
- It’s suitable for year-round occupancy.
- You have exclusive control over the property.
- It isn’t rental property or a timeshare arrangement.
- It isn’t subject to any agreement that gives a management firm control over occupancy.
The same section says that if the lender finds rental income from the property, the loan can still be delivered as a second home, as long as that income isn’t used to qualify you and every other second home requirement is met. Fannie Mae’s general rental income section (B3-3.8-01, dated September 2, 2026) repeats the point: rental income from a second home can’t be used to qualify the borrower.
So some rental activity doesn’t automatically disqualify a second home. Giving up control of the calendar does.
What Makes It an Investment Property
Fannie Mae’s definition is short: an investment property is owned but not occupied by the borrower. If you’re buying a Keystone condo you don’t plan to use, or one that will sit in a managed rental program you can’t book around, you’re likely in investment territory.
The upside is income. Under B3-3.8-01, rental income can count toward qualifying on an investment property, with documentation rules and a 12-month property management experience test that limits how much counts for first-time landlords. Your lender applies those details.
Down Payment: The Biggest Gap
Fannie Mae’s Eligibility Matrix, dated April 1, 2026, sets maximum loan-to-value for a one-unit purchase underwritten through its Desktop Underwriter system:
| Occupancy | Max LTV (purchase, 1 unit) | Minimum down |
|---|---|---|
| Second home | 90% | 10% |
| Investment property | 85% | 15% |
Both occupancy types have to go through Desktop Underwriter and get an Approve/Eligible result under B2-1.1-01. Lenders can set stricter limits on top of Fannie Mae’s.
A Worked Example on an $800,000 Frisco Condo
This is an example only, using the matrix maximums and an assumed price. It isn’t a quote.
| Second home | Investment property | |
|---|---|---|
| Purchase price | $800,000 | $800,000 |
| Minimum down payment | $80,000 | $120,000 |
| Loan amount | $720,000 | $680,000 |
That $40,000 difference is cash you’d need at closing before costs, reserves, or anything else. Your lender will add its own reserve and credit requirements.
Pricing Adjustments Stack Up
Fannie Mae charges loan-level price adjustments, called LLPAs, that lenders usually build into your rate or closing costs. On Fannie Mae’s LLPA Matrix, dated September 9, 2026, a purchase at 75.01% to 80% LTV shows a 3.375% adjustment on the second home row and the same 3.375% on the investment property row.
A condo also carries its own adjustment. The same matrix shows 0.750% for a condo above 75% LTV. LLPAs are cumulative, so they add to the credit score and LTV adjustments every loan already gets.
For example, on a $640,000 loan (20% down on our $800,000 condo), 3.375% works out to $21,600 before the condo and credit adjustments. How that shows up on your Loan Estimate is your lender’s call.
How a Short-Term Rental License Fits In
Every rental in Summit County runs through a license. The Town of Breckenridge requires a license for any unit rented for less than 30 consecutive days, no matter how it’s marketed, and charges a regulatory fee of $756 per studio or bedroom per year. Summit County requires its own license for properties outside an incorporated town, under regulations effective February 15, 2023, with caps in each basin.
Fannie Mae’s guide doesn’t address STR licenses directly. What it does address is control and income. A license you hold yourself, with your own calendar, reads differently from a management agreement that controls when you can use the unit. Lenders also set their own rules here. Tell your lender about your rental plans, including a license you hold or plan to apply for, before you lock.
For the full yearly cost picture, see what a Breckenridge condo costs to own each year. If the building itself runs a rental desk or front-desk program, read how condo project eligibility works for Summit County conventional loans, because the project can matter as much as your occupancy.
Misstating Occupancy Is Mortgage Fraud
Picking second home to get the lower down payment when you plan to run the unit as a full-time rental is a real risk. The Uniform Residential Loan Application states that knowingly making a false statement is a federal crime punishable by fine or imprisonment under 18 U.S.C. 1001. The CFPB’s Your home loan toolkit, last updated July 2026, says you’re responsible for an accurate and truthful application and that mortgage fraud is a serious offense.
Plans change, and that’s fine. Tell your lender your plan as it stands when you apply.
Working Through It With a Local Agent
Jamie Bridges, a REALTOR® with Keller Williams Realty DTC, holds the Resort and Second-Home Property Specialist (RSPS) designation and works with buyers across Summit County, from Breckenridge and Frisco to Keystone, Silverthorne, and Copper Mountain. Before you write an offer, he pulls the HOA’s rental rules and checks the town or county license status for the unit. Then you can bring a clear rental plan to your lender before you pick an occupancy type.
This isn’t lending advice. A lender you choose can tell you which loan fits your plans and your numbers.
Frequently Asked Questions
Can I rent my second home in Breckenridge and keep a second home loan? Fannie Mae allows a loan to be delivered as a second home when the lender finds rental income, as long as that income isn’t used to qualify and you keep exclusive control and occupy it part of the year. You’ll also need a Town of Breckenridge license for stays under 30 days. Disclose your plans to your lender, since lenders can add their own rules.
How much do I need down for a Summit County second home loan? Fannie Mae’s April 1, 2026 Eligibility Matrix allows up to 90% LTV on a one-unit second home purchase, so 10% down at minimum. An investment property tops out at 85% LTV, or 15% down. Your lender may require more.
Can rental income help me qualify for a second home? No. Fannie Mae’s Selling Guide says rental income from a second home can’t be used to qualify the borrower. On an investment property, rental income can count under Fannie Mae’s documentation rules.
Bring your rental plan to the first showing, and the loan conversation gets easier. Jamie Bridges is a REALTOR® with Keller Williams Realty DTC serving the Denver Metro Area and Summit County, Colorado. Call or text Jamie at 720-397-7555 to talk about your next move.
Sources: Fannie Mae Selling Guide B2-1.1-01, Occupancy Types (10/05/2022), accessed October 30, 2026; Fannie Mae Selling Guide B3-3.8-01, General Rental Income Information (09/02/2026), accessed October 30, 2026; Fannie Mae Eligibility Matrix, April 1, 2026 (reposted May 19, 2026); Fannie Mae Loan-Level Price Adjustment Matrix, September 9, 2026; Uniform Residential Loan Application (Fannie Mae Form 1003 / Freddie Mac Form 65), continuation sheet, effective 1/2021; CFPB, Your home loan toolkit, last updated July 2026; Town of Breckenridge, Accommodation Unit (Short Term Rentals) Licenses, accessed October 30, 2026; Summit County Government, Short-Term Rentals, accessed October 30, 2026. Data deemed reliable but not guaranteed. General information only. This isn’t lending, legal, or tax advice. Talk with a lender about your situation. Dollar figures are examples only.
