Buying in Florida From New York: Financing and Residency Questions
If you keep your New York home and add one in Florida, a lender will ask how you will use it. Fannie Mae treats a second home as occupied for some portion of the year, one unit, suitable for year-round use and under your exclusive control [3]. New York decides tax residency separately, by domicile and a 184-day test [5]. As we read Florida and federal licensing text, it addresses the originator, not your home state [1][2]; other states' rules are not addressed, and this is not legal advice.
Can I finance a Florida second home while I keep my New York residence?
Most New Yorkers who keep their home and add a Florida one are describing a second home. Fannie Mae's Selling Guide defines a principal residence as a property the borrower occupies as their primary residence, and an investment property as one that is owned but not occupied by the borrower [3].
For a second home, the guide says the borrower must occupy it for some portion of the year, it is limited to a one-unit dwelling, it must be suitable for year-round occupancy, and the borrower must have exclusive control over it [3]. That last point matters if you plan to rent the home out or hand control to a management company.
These are agency definitions. Non-agency programs set their own occupancy rules, and we tell you what our lending partners require for your file rather than guess here.
Does buying a Florida home change my New York tax residency?
Buying alone does not answer it. The New York Department of Taxation and Finance says you are a New York State resident for income tax purposes if your domicile is New York, or if you maintain a permanent place of abode in New York for substantially all of the taxable year and spend 184 days or more in the state [5]. It defines domicile as your permanent and primary residence that you intend to return to or remain in after being away [5].
The department also says your New York domicile does not change until you can demonstrate with clear and convincing evidence that you abandoned it and established a new domicile outside New York, and that it is not enough to file a certificate of domicile or register to vote in the new location [5].
We are a mortgage broker, not tax advisers. If you are considering making Florida your domicile, talk with a New York tax professional before you rely on any day count or checklist.
Does living in New York City or Yonkers add anything?
Yes, the department describes separate local tests. For New York City, you are a resident if your domicile is New York City, or if you have a permanent place of abode there and spend 184 days or more in the city [5]. For Yonkers, the same two-part test applies to Yonkers [5].
The department applies the same domicile concept as New York State to each, with its own 184-day test [5]. A person who leaves the city or Yonkers for Florida therefore has more than one residency question to check with a tax professional, and we cannot answer it for you.
Will a Florida vacation home qualify for homestead?
The Florida Department of Revenue describes the homestead exemption as available when someone owns property and makes it their permanent residence or that of a dependent, with applications going to the property appraiser in the county where the property is located [4]. A Florida home kept as a vacation or second home while your permanent residence stays in New York does not fit that description; ask that county property appraiser how your facts are treated.
Does Florida's licensing law mention a New York address?
Section 494.0025 makes it unlawful to act as a loan originator, or as a mortgage broker, "in this state" without a current, active license from the Florida Office of Financial Regulation [1]. The SAFE Act says an individual may not engage in the business of a loan originator without a registration or a license and registration [2].
As we read those two texts, neither mentions a borrower's address. We describe only Florida and federal text; other states' rules, including New York's, are not addressed here, and this is not legal advice.
Frequently asked questions
What does a lender mean by a second home?
Under Fannie Mae's Selling Guide, a second home must be occupied by the borrower for some portion of the year, is limited to a one-unit dwelling, must be suitable for year-round occupancy, and must be under the borrower's exclusive control [3].
Can I rent out a Florida second home I finance?
Under Fannie Mae's definitions a second home requires the borrower to have exclusive control over the property, and an investment property is one owned but not occupied by the borrower [3]. Renting changes how the property is classified, so tell your loan officer your plan before you apply.
How many days in New York make me a New York resident for income tax?
The New York Department of Taxation and Finance says that if your domicile is not New York, you can still be a resident if you maintain a permanent place of abode in New York for substantially all of the taxable year and spend 184 days or more in the state. Any part of a day counts as a day. A tax professional should apply this to your facts [5].
Do New York City and Yonkers have their own residency tests?
The department describes a New York City test and a Yonkers test. Each uses the same domicile concept as New York State and has its own 184-day test for people who keep a permanent place of abode there [5].
Does registering to vote in Florida change my New York domicile?
Not by itself. The New York Department of Taxation and Finance says your New York domicile does not change until you can show with clear and convincing evidence that you abandoned it and established a new domicile elsewhere, and that filing a certificate of domicile or registering to vote in the new location is not enough [5].
Do I need a Florida license myself as a borrower?
Section 494.0025 is written about acting as a loan originator or mortgage broker in this state without a license, and the text we read does not mention borrowers [1]. We describe only Florida and federal text, and this is not legal advice.
Sources
- Florida Statutes s. 494.0025, Prohibited practices. The Florida Senate. Subsections (1) and (2). Accessed .
- 12 U.S.C. 5103, Loan originator licensing and registration requirement (SAFE Act). U.S. Code (as published by Cornell Legal Information Institute). subsection (a). Accessed .
- Selling Guide B2-1.1-01, Occupancy Types. Fannie Mae. Accessed .
- Exemptions (homestead exemption). Florida Department of Revenue. Accessed .
- Frequently asked questions about filing requirements, residency, and telecommuting for New York State personal income tax. New York State Department of Taxation and Finance. State, New York City and Yonkers residency questions. Accessed .