In addition to what Rick just stated, to aquire the loan, you must now pay 20% down as Freddie Mac and Fannie Mae will no longer insure Second homes or Investment properties with PMI so you would not be able to put down anything less.
You will also need between 3 to 6 months "reserves" in the bank. (Reserves are your future PITI house payment.)
You might want to count on 4-5% in closing costs as well, unless these costs are covered by seller concessions.
The up side is on a second home, you can still get a good rate, but please do not expect anything in the 4's. I understand that rates of about 4.9 is being advertised by some of the big banks to get the phone to ring, but it is on a 20 year amortized loan which at the end of the day will cost MORE than a 30 yr. fixed amortized loan at 6.5%. (What big banks will do to grab your business, sigh.)
The other unfortunate thing is the trade-off is a few thousand dollars in junk fees, so you lose out twice!! They make you THINK you are getting a good deal, when actually you are paying more. It is actually more cost effective to go with a reliable Mortgage Broker, as we depend on referrals by satisfied clients and never get any extra "stimulus monies" to line our pockets.
If you have any more questions regarding financing feel free to contact me.
First Capital Lending Corp.
239-277-9244 Ext. 212