If you are not a Veteran, than an FHA loan with a minimum of 3.5% down is possible. However, you are required by FHA to buy a primary residence. A 2nd home is defined as a vacation home and is different from a primary residence. If your purchase is truly a 2nd home, you are looking at Fannie or Freddie which, depending on the area, may require 5-10% down with MI. To rid yourself of the MI, you would be required to put 20% down.
John's list of questions are key to giving you a more accurate response! Nice job, John!
As John has mentioned, income to debt ratio, credit scores, how much in reserves, and down payment may impact what type of loan program you may qualify for.
Our own lender, when we moved to another home and turned our former primary residence into a rental, required us to secure a tenant and submit a signed lease.
There are several very nice homes priced competitively in Long Beach. Please feel free to contact me if you have any questions or would like my help in finding your next home. I love Long Beach and know the area very well. I have friends and family who lived and worked in LB since 1993.
Also I have a short list of excellent lenders in the area, if you need a few to run numbers for you.
Hope this has been helpful!
Prudential California Realty
Please see my blog for tips and advice on getting a mortgage
I am both a mortgage & real estate broker. Feel free to call me any time if you want me to run some numbers for you to help you see what you can do.
Buying a second home as a primary residence does not have a down payment limitation. However, you may find that if you don't have sufficient equity in the first home or adequate income to cover both properties (not including your rent, since you are not receiving any yet) you may run into some limitations.
Last I checked, lenders wanted borrowers to have at least 25% equity in the first home to consider a loan for a new one.
Assuming this is the case, I checked with one of my lenders who would consider the loan with 10% down. Anything less than 20% will require mortgage insurance.
It would be best to contact a reputable lender, which I have several. More than likely it will be 20% or more, but I'm a Realtor. If you need some names, I would be happy to pass them on to you. If you need any help in finding that specific property, I can help you there as well. You can contact me at: firstname.lastname@example.org or 425.241.2588. My best to you. Nancy