To purchase a 2nd home, is 20% down a must?

Asked by Austin, Freeport, FL Wed Mar 16, 2011

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varela58, Home Buyer, Tracy, CA
Sat Sep 22, 2012
My husband and I own a home in Sacramento, CA and I've been commutting for 19 months to Tracy CA, my husband just got a new job in Tracy and we need to know if we can purchase another home in Tracy without having to come up with 20% down.
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Murray Balkc…, Agent, Santa Rosa Beach, FL
Mon Apr 18, 2011
That 20% down will be the case in many situations, but there is a rural housing loan program which requires no money down. It is a 100% loan, and good for rural areas like South Walton. Within the city limits of Freeport, it may not be available, but there is a lot of land in the area we call "Freeport" that is outside the city limits in rural areas which will qualify for that type of loan.

Where are you looking to buy? Your answer will make a difference in the question of it can be covered by rural housing loans.

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Alan Strange, Agent, Westminster, CO
Thu Mar 17, 2011
It's good to see someone taking advantage of the opportunities available in our market right now. Kudos for you.
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Robert Spino…, Mortgage Broker Or Lender, Mill Valley, CA
Thu Mar 17, 2011

The Homepath program will allow a 2nd home to go up to 90% LTV (so, 10% down payment). There is no mortgage insurance on these either. This would be the best way to go if you can find a property that is eligible.

If you have any questions, you can check out the video below or get in touch directly.

Thank you,

Rob Spinosa
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Myke Atwater, Agent, Santa Rosa Beach, FL
Thu Mar 17, 2011
Hello Austin,

Generally, you are correct. Even in this environment on a primary the down payment in 20% unless you are FHA or VA. If it is considered to be an investment property, there will be a 30% required down payment. A second home must be at least 50 miles from your primary home.

I hope this helps. I have listings in the Freeport community, and know it well. I would be happy to assist you in searching for and purchasing property in that area.

Let me know if I can be of any help.

Myke Triebold, gRI, LMC
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Dallas Texas, Agent, Dallas, TN
Wed Mar 16, 2011
Much is governed by your entire financial review. In most instances yes

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
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, ,
Wed Mar 16, 2011
Not necessarily. If it is a true second home then you could buy with as little as 10% if it is a single family home. 20% would be required if it was a condo. By the way, a condo would have to be approved, for the lender to even consider lending on it. For it to be considered a second home it would have to be a certain distance away from where you live. Otherwise it is considered an investment home and you would need 20% down. If you want to discuss further call or send me an email.

Jose Morales
Florida Mortgage Coach
“We Coach You Through the Mortgage Process”
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Ray Leone, , Escondido, CA
Wed Mar 16, 2011
Answer would be dependent on a couple of factors. (1) where is the subject property located? AZ, CA, NV 20% would be required (2) type property: single family or condo? (3) loan amount, Wish I could be more specific, but answers are not as simple as they used to be.
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