How difficult is it to purchase a 2nd home with about 15% down in the Ellenwood or Stockbridge GA area?

Asked by leosag1019, Ellenwood, GA Tue Feb 5, 2013

I only have about $7,000 for a down payment on a $50,000 home. I already live in the area I want to purchase the 2nd home my credit is good and I can well afford this purchase.

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5
, ,
Tue Feb 5, 2013
That could prove to be quite difficult unless you find a HomePath property. Since this will be an Investment Property for you rather than a true Second Home/Vacation Home, the minimum down payment will be 20%.

The only exception to this 20% rule is if you purchase a HomePath property. Fannie Mae will allow their HomePath properties to be purchased with as little as 10% down for Investment Properties.

Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
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1 vote
Winsetta Mon…, Agent, Atlanta, GA
Tue Feb 5, 2013
You have a few options, that all depends on your credit and current income. You can purchase from hudhomestore or homepath. I work with several investors that sale homes lower than value.
Give me a call so we can dicuss.

Winsetta Montgomery
678-899-9664
RBS Realty
0 votes
ME, Both Buyer And Seller, Atlanta, GA
Tue Feb 5, 2013
hello, my best advice to you is to find a homepath property to buy..that way the 20% down payment will not apply. good luck find a decent homepath property under 50k..Most have multiple bids in effect. HOMEPATH is your best option!....
0 votes
, ,
Tue Feb 5, 2013
One other issue you may come across is the low loan amount. Most banks won't lend under a specific amount. A hard money lender will go down to 25k but the rate is 15%. The down payment is 35%. I can lend up to 75% of the value with no down payment (the equity is the down payment) but the minimum is $100,000 loan amount.

I recommend going Rodney's route and finding a similar house that is owned by fannie mae with 10% down. Check out http://www.homepath.com.
0 votes
Lynel Adams, , Gainesville, GA
Tue Feb 5, 2013
Dear Leosag:

You state that you want to purchase this as a 2nd home. The define of a 2nd home is similar to a vacation home, mountain get away, golf course, lake front, weekender so to speak. If you live in the neighborhood and this property is in a subdivision and does not meet any of those, and your trying to say I want to purchase a #2 home, compared to 2nd home..then it will be an investment property for renting and such then the down payment will be 20% of your own money. Of course having great credit scores as you noted is a plus, for it is a conventional loan as well.

To get pre-qualified and know your exact options is a wonderful idea and I strongly reccomend that as well as Rodney did.

I thank you for the opportunity!

Lynel Adams
Sr. Mortgage Loan Officer
Silverton Mortgage Specialist
NMLS 359696
770-318-6740 direct
0 votes
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