Home Buying in Charlotte>Question Details

Alex, Home Buyer in Charlotte, NC

how much money would i need to put down to buy a second home?

Asked by Alex, Charlotte, NC Thu Feb 2, 2012

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5
Good morning, Alex.
Generally, you need a down payment of 20% of the purchase price for a second home and your debt to income ratios are based on both mortgage payments. There are a number of adjustments that can occur based on your specific income, the value of the home, the amount of the mortgage and what you do when you are not living in one of the homes. Vacation homes are treated slightly differently than investment properties. If you have a full time agent with a Masters degree in Planning with Finance and over two decades of experience, working for you, you will likely do better in negotiations. I'd be pleased to provide that service. ... if you appreciate this answer, please give it a "thumbs up", or if this was the most helpful answer, please say thanks with a "best answer" click .
2 votes Thank Flag Link Fri Feb 3, 2012
Hi Alex!

Lenders usually require 20% equity in the investment property. This meaning, if you were to buy a 2nd home and rent out your original, this would make your original home an investment and would need 20% in it. If you were to make your new purchase an investment, you would have to put 20% in that one.

Please feel free to contact me directly at any time with your real estate questions! I work for buyers at no cost to them and love to negotiate!

John Siddons
john.siddons@prucarolinas.com
704-458-1843
http://www.searchcharlotte.com
http://www.johnsiddons.com
1 vote Thank Flag Link Thu Feb 2, 2012
A good contact for you would be Chris Reinert at Ameritrust Mortgage - 704-909-5542. It will only take about 5 minutes to give him a call and I know he can answer a lot of questions for you. Please tell him that Erma at Keller Williams gave you his contact information. Thanks.
0 votes Thank Flag Link Fri Feb 3, 2012
Alex,

a second home requires 20% of the sale price as a down payment to purchase. generally there are some exceptions to this rule...However; most people do not qualify for them. So it would be safe to say 20% down.
Web Reference: http://www.davedicecco.com
0 votes Thank Flag Link Fri Feb 3, 2012
Hey Alex,

Typically a 2nd home requires 20% down but there are just a few exceptions depending on your individual situation.

Amy Baker
Allen Tate Realtors
704.258.1459
Amy.Baker@allentate.com
0 votes Thank Flag Link Thu Feb 2, 2012
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