Mrs. Hyman,
Great question. It just so happens that I am working with a couple from NY that are in the same position as you are. They are getting ready for retirement in the next 1-2 years and wanted to take advantage of the current market.

Here is the skinny on the 20% down scenario. If you are buying the home as your "second home" and not an investment home, then the 20% down rule does not apply. Now, you probably want to know, "whats the difference, right"? Well, a bank looks at a second home as a home that you will not be renting out but staying in throughout the year. If you went in and told the bank that you wanted to buy a home to rent out for the next 2 years, then you would be looking at an investment purchase, which requires more down and a higer interest rate.

If you have any other questions regarding this information, please feel free to contact a local lender in the area you are looking to purchase in or your Realtor.

Hope that helps.