Home Buying in 07860>Question Details

Erik Olsson, Home Buyer in New Jersey

How much of a down payment do you need when buying a second home?

Asked by Erik Olsson, New Jersey Sun Aug 26, 2012

What is the average down payment when you already own a home currently which is paid off (no mortgage)? I have heard that this would considered an investment property and I would need to put down 20%.

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Kim Loizzi’s answer
Hi Erik,

All of the information you have gotten is good information. Since you already own a home you would be financing a second home. You can own 2 homes and not have it considered an investment property. To avoid PMI you always want to put down 20%. If you put down anything less than 20% on a home you will be subject to PMI which is an insurance policy the mortgage lender takes out in case you default on the mortgage. So to keep your payments lower and pay for what you own (principal, interest, taxes and HOI) you want to put down as much as possible. With rates as low as they have been these last several weeks, one wold be very tempted to keep as much as possible in the bank. My advise is to speak with a qualified mortgage person and an accountant if you have one. They are the experts. I have a mortgage person for you and a real estate attorney who also has a masters in taxation (the best of both worlds) if you need some direction.
Feel free to reach out. 201-446-1117 KimLoizzi@RealtyExecutives.com
0 votes Thank Flag Link Sun Aug 26, 2012
Depends on if it is a rental or subject property. It is still considered an
investment although the down payment may be a variable. Call
First Prestige Mortgage you will get the answer you need.
973-744-8300
0 votes Thank Flag Link Sun Aug 26, 2012
Depends upon each Individual current income and credit score. I know Individuals with 3 and four homes. 1 or 2 seasonally rented when they do not personally use. For more ideas and collaboration visit Best Cash Flow SolutionS . com or call Lester Zaleski 973-300-1031. Much success in purchase or your second or investment property.
0 votes Thank Flag Link Sun Aug 26, 2012
It might depend on whether or not you can consider it a 2nd home or an investment property. Your accountant could help you with that. The classification you use could save you $$$$ in tax money. I've heard anything from 20-25-30%.
If you need a mortgage rep, just let me know.
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Sun Aug 26, 2012
Just talked to the mortgage person at my office.
He said you could do it with as little at 10 to 20 perecent down. Feel free to give him a call. Brad Armstrong at Weichert Financial Services (973) 222-0979. If you would like to see any homes or have any questions feel free to give me a call at (973) 903-2862 or email at rayerins@yahoo.com
0 votes Thank Flag Link Sun Aug 26, 2012
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