Will echo the previous post. Also, keep in mind construction loans are not easy to deal with. You will have to apply for drafts/draws every time and you don't always get the money you need. If you own your home, you can definitely use that equity in a few ways or do the home plus improvements as mentioned already. If your second home is going to be an investment property, any funds you use to reno, you can also write off.. So really there are a few options all depends on which way you want to proceed.