What many lenders are looking for are several factors.
1. Debt to income ratio,
2. FICO score,
3. longevity in job position ie. job jumpers are seen more and more of a risk.
and 4.risk of area; flood prone, industrial...anything which can make a possible re-sale (distress/ short/ forclosure) a burden on the lender.
More and more banks (and lenders as a whole) are at risk and are finding selling thier loan portfolios much more difficult to third parties...no one wants them and therefore tight lending.
Rule of thumb nowadays...anything less than12% for a new purchase will be OK for lenders to consider. We have a great lender in our office, Ray Garry who specializes in this, especially with the new guidelines. He is great!
Give me a call and I will set you up with his number.
Best of luck
John Jelinski
Crossroads Realty
609-713-3454
johnjelinski_7@msn.com

TireKicker In todays market banks are looking at borrowers with good credit so the higher your fico score is the lower the downpayment % will be. If you can document your income and you have a fico score greater than 680 you would only have to put a 5% downpayment. There are loan programs called "Pledged asset Loans" (PAL) that require no down payment as well, but you would have to have non retirement investments to pledge for the loan equal to at least 20% of the purchase price. (These loans are not allowed in all states)

If you took out a Home Equity Loan on your primary residence you would need to take the money out of the line and put it in the bank for 2 months or more for the mortgage company to allow you to use the money for the downpayment. (the mortgage company does not want to see the large deposit into the account, this will draw a red flag) ., but if your incokme level is sufficient to carry the debt payment of the home equity loan, your primary mortgage & the vacation home you would not have a problem. If you need any further information pleasde E-mail me at cgrushin@gateway-funding.com

I am with a lender as i type, this is what they are telling me; 2nd homes go via a conventional lender and the very best is 5 - 10% down, anything below 680 FICO will give you a higher interest rate but is duable. What / where are you interested? THIS is a great time to buy shore property is that what your interest is? Great things about a vacation home is passing it on to the next gererations, I have a good book about this if your interested. I have had a vacation home in Maine since the '80's and it's been the best real estate move I have made, except for the water front here in ocean county. Let me know how i can help, my cell is 732-778-9933 email mwilliams@crossroadsrealtynj.com thanks

The best possible situation is 20% down. Otherwise, you may be able to pull it off with your primary home equity as long as you can pay the loan and have hthe income to support it.