After speaking with approximately 20 difference Florida banks, I have basically found almost all of them are telling me this.
Mostly everyone is requiring 25-30% (mostly 30% down is required rather than 25%) down but still offering adjustable rate mortgages even with this large percentage down. The ARM would be a 3/1 or 5/1 and I even found one bank that will do a 10/1. The one bank that will do a 10/1 (30% down) ARM also offered a fixed rate 30 year mortgage (30% down as well) but your income had to be at least $250k/year OR you must have $500k in investable assets to qualify for this Private Banking Portfolio Loan.
I have found 2 - 3 within those 20 banks that will do a fixed rate 30 year mortgage BUT they are still requiring the 30% down. Of course that's the better option but our problem is coming up with the 30% down. One of those banks out of these 2-3 banks did check the condo project I am interested in buying the unit in and I was told that project was on the "limited" approval list which means it did qualify for a fixed rate loan but again, the 30% down. The person I spoke to said he would check to see why it was not on the "full" approval list. If it were on the "full approval" list, then the property would have qualified for 20% down and 30 year fixed (I would imagine the other 2 banks would work this way as well as far as an approval list but I'm not sure). This last conversation was yesterday afternoon and I have not heard back from him as of yet.
AND lastly, I found only one bank that will allow 20% but is only offering 5/1 or 3/1 ARM's.
That is our dilemma, try to save another 10% towards the down payment (we only have 20% right now) to try and get a fixed rate loan or do a 5/1 ARM (with interest rates at a cap at the incremental rate increases) with the bank accepting 20% down and hope we can refinance before the first 5 years is up.
We tried two other options. Our home (husband and I) is in my name. He has never owned a home and we thought we could purchase the condo under FHA but because this Florida condo will not be his primary residence, we can't do FHA.
Also looked into Homepath and because we are very specific as to where we want to purchase at in Seagrove (the project/condo), we were only looking for that project on the approved Homepath list or anything very close to it (walking distance) and could not find anything on their approved list.
I hope this gives you some good information as to what seems to be available as far as financing on a second home (this information is for condo purchases). By the way, many of the banks look at home or town home purchases differently and many of them that I spoke to did tell me 20-25% down and fxied mortgages are available for a home or town home. So if you are looking for a home or town home I think you won't run into this condo problem as much.
If you or anyone else finds any other options available that I have not found above, an email or post would be greatly appreciated.