How much is your current home worth? How much is the new one worth? Where is it in relation to your job? Is the new one closer, further, equidistant? Are you selling the new home and buying the new one on contingency?
This is almost an identical start to the same conversation I had with a partner at a law firm last fall. She wanted to buy a home in the area across the street from her, larger purchase price but very little otherwise to distinguish that house from her current one and she didn't want to sell the current one and wanted to qualify as an owner occupied buyer to get the best financing.
The bottom line is in the scenario I outlined, that was a dead deal unless she wanted to call the new property an investment property until she established residency in the house and then refinance or she had to sell her existing on contingency to close on the new one.
Any junior underwriter would ask the questions I mentioned here and unless there was a really strong case, the loan would be countered as an investment property assuming it wasn't outright denied.
As with all loans, a sufficiently strong file that MAKES SENSE and meets the guidelines should/will be approved.
If you're not working with a loan officer who's asking these questions, don't walk, RUN to a more experienced loan officer.
Let me know if you have additional questions on the scenario if yours is similar to hers.
Here is my primer on basic down payment requirements. There may be specialized loan programs offered through your State or Local Government with lower down payments or subsidized down payments; check with your Local Mortgage Banker for details.
Minimum Down Payment:
If you are a Veteran of the Armed Forces and you qualify for VA Guaranteed mortgage financing, then eligible Veterans are permitted to financing up to 100% of the purchase price of the home. That means no down payment.
For other HomeBuyers, Non-Veterans, the program in the Bronx for qualified Homebuyers with the lowest down payment requirement currently is the FHA or Federal Housing Administration. The FHA Insures mortgages made by banks and Mortgage Bankers and allows for a down payment of only 3.5%. http://portal.hud.gov/hudportal/HUD?src=/topics/buying_a_home
After FHA, Conventional financing through either FannieMae or FreddieMac allows for a minimum down payment of 5%. The Lender will need to obtain approval from a Private Mortgage Insurance company (PMI) to complete the loan approval.
The best way to have your questions about down payment and mortgage qualifications answered is to locate a local Mortgage Banker with at least 15 years experience. Mortgage professionals like myself who work for local Mortgage Bankers are Licensed as opposed to the registered status of sales people at regular banks. Thus you will receive a higher level of service which is just what a First Time HomeBuyer needs in the Bronx.
I hope that helps!
Trevor Curran NMLS #40140.