A Tybee beach house you use on weekends doesn’t get treated like the home you live in. Your lender, the federal flood program and Chatham County each define a primary residence, and a second home doesn’t meet any of those definitions. If you’re still deciding where on the island to look, start with our Tybee Island buying guide and the Tybee Island community page.
Key Takeaways
– Fannie Mae counts a second home as a one-unit property you occupy for part of the year and control yourself, with no management firm controlling who stays there.
– Federal flood policies carry a $250 annual surcharge on homes that aren’t a primary residence, against $25 on a primary residence.
– A flood claim on a dwelling that isn’t your principal residence settles at actual cash value, not replacement cost.
– Chatham County’s homestead exemption requires that you own and occupy the home as your permanent residence on January 1.
What’s the difference between a second home and an investment property?
A second home is one you occupy yourself for part of the year; an investment property is one you own but don’t occupy. Fannie Mae’s Selling Guide says a second home must be occupied by the borrower for some portion of the year, is restricted to one-unit dwellings, must be suitable for year-round occupancy and must be under the borrower’s exclusive control (Fannie Mae Selling Guide). It can’t be rental property or a timeshare, and it can’t be subject to an agreement that gives a management firm control over its occupancy.
Pricing follows the label. Fannie Mae applies a loan-level price adjustment to all investment property loans and to certain second-home loans, and it sets maximum loan-to-value ratios and credit score requirements by occupancy type. Your lender can tell you which apply.
On Tybee this comes up two ways. A duplex is more than one unit, so it can’t be financed as a second home under these rules. And if you plan to hand a condo to a rental company that books it, read the management agreement before closing. Our Tybee Island condo buying guide covers the rest of the condo checklist.
Can you rent out a second home on Tybee Island?
You can earn some rent, within limits the loan and the city both set. Fannie Mae says a loan can still be delivered as a second home when the lender identifies rental income, as long as that income isn’t used to qualify and every other requirement, including your own occupancy, is met (Fannie Mae Selling Guide).
As of August 2026, Tybee Island has revised its short-term vacation rental ordinances and will bring in a new permitting process in 2027, and in October 2026 its page said staff were still setting up the application (City of Tybee Island). Our guide to Tybee Island short-term rental rules covers permits and the room tax.
Can you use a VA loan to buy a second home?
Not for a house you’ll only visit. VA’s buyer’s guide says a VA-backed purchase loan requires that you “live in the home being bought with the loan” (U.S. Department of Veterans Affairs). If Tybee will be home, say after PCS orders to Hunter Army Airfield, that’s a primary-residence purchase. Our guide to VA loans for Savannah and Tybee condos walks through that, and a VA-approved lender can check your entitlement.
Is flood insurance more expensive on a second home?
Yes, in the fixed surcharge, and a claim pays out on a different basis as well. The City of Tybee Island tells owners that on the island “you live, work or play in special flood hazard area” (City of Tybee Island). Fannie Mae requires flood insurance on a loan secured by property in a Special Flood Hazard Area, which covers all zones beginning with “A” or “V” (Fannie Mae Selling Guide).
The National Flood Insurance Program treats a home as your primary residence when you or your spouse will live there more than 50% of the 365 days after the policy starts, and a couple can’t have more than one (FloodSmart). A weekend house misses that test. Its annual HFIAA surcharge is $250, where a primary residence pays $25 (FloodSmart). It also can’t get the pre-FIRM discount, which FloodSmart lists for primary residences built or improved before December 31, 1974, or before the first Flood Insurance Rate Map.
Claims work differently too. The Standard Flood Insurance Policy pays replacement cost on a single-family dwelling when it’s your principal residence and insured to at least 80% of replacement cost or the program maximum. A dwelling that isn’t your principal residence settles at actual cash value, meaning replacement cost less physical depreciation (Standard Flood Insurance Policy, 44 CFR Part 61).
During due diligence, get a quote written for a non-primary residence at that address. FloodSmart says the annual increase cap usually doesn’t apply to new policies, so the seller’s bill may not predict yours. A policy bought with your mortgage starts without a waiting period (FloodSmart).
Can you claim the homestead exemption on a second home in Georgia?
Georgia ties the homestead exemption to your legal residence, so a second home doesn’t qualify. The Department of Revenue says the home must have been owned by the homeowner and been their legal residence as of January 1 of the tax year, and the owner must actually occupy it (Georgia Department of Revenue). In Chatham County, the Board of Assessors says owners who occupy a home as their permanent residence on January 1 are eligible, an applicant who owns two or more houses gets the exemption on only one, and rental property does not qualify (Chatham County Board of Assessors).
Chatham’s exemption equals the difference between the current year’s fair market value and an adjusted base-year value. A Tybee second home gets none of it. A tax professional can tell you how that plays out for your properties.
Is mortgage interest on a second home deductible?
It can be, if the loan is secured by a qualified home, which the IRS defines as your main home or your second home (IRS Publication 936). If you rent the house out part of the year, you must use it yourself more than 14 days or more than 10% of the days it’s rented at a fair rental, whichever is longer. Otherwise the IRS treats it as rental property. Rent it for fewer than 15 days in the year while using it as a residence, and you don’t report the rent or deduct rental expenses (IRS Topic 415). Have a tax professional run your numbers.
Frequently Asked Questions
Do I need flood insurance for a second home on Tybee Island?
You do if the loan is secured by property in a Special Flood Hazard Area, meaning any zone beginning with “A” or “V” under Fannie Mae’s rules. The City of Tybee Island tells owners they’re in a special flood hazard area, so expect your lender to confirm the zone and ask for a policy.
Can I put a Tybee second home in a rental program?
Read the agreement first. Fannie Mae’s second-home rules say the property can’t be subject to an agreement that gives a management firm control over its occupancy, and you must keep exclusive control. If a rental company decides who stays and when, your lender may treat the loan as an investment property instead.
Can I get the homestead exemption on two homes in Chatham County?
No. Chatham County’s Board of Assessors grants the exemption on only one house when an applicant owns two or more, and rental property does not qualify. The Georgia Department of Revenue ties the exemption to the home you own and occupy as your legal residence on January 1.
Looking at Tybee for a second home?
Tybee Island is one of our team’s areas of expertise. Before you write an offer, check the city’s list of addresses with a flood elevation certificate on file, get a flood quote written for a non-primary residence, and ask your lender which occupancy type your loan will use. When you’re ready to look at houses, get in touch and we’ll set up showings. Johnson & Affiliates Real Estate Group, eXp Realty, (706) 662-7636.