We would like to purchase a second home but can only afford 10% down on a $1.2 million price tag.

Asked by Leeyanik, Seattle, WA Wed Aug 22, 2012

Credit is excellent and we can pay the additional 10% off with a year. Also, our primary residence has greater than $500k in equity based on recent appraisal. How do we make this happen?

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Ray Akers, Agent, Seattle, WA
Thu Aug 23, 2012
You have several options; 1) investigate a seller-carried 2nd mortgage, 2) investigate if you can cross-collateralize your present home, 3) explore a larger 2nd mortgage on your present home, and 4) talk about a custom loan with a portfolio lender. There may be other options as well. You should talk to a mortgage broker and a portfolio lender. Lending rules are beginning to relax a bit, but we're a long way from the days of no-document loans. If you'd like a referral to a lender, feel free to contact me direct.

Good luck.
0 votes
John Stewart, Agent, Seattle, WA
Thu Aug 23, 2012
$1.2 M in 98107? Not too many of those. Sunset Hill?
I have a mortgage broker/banker who has a number of options for just such a loan. I've posted this information in the past, here and on Zillow.

Email me if you'd like the information again.
Web Reference:  http://www.nwhome.us
0 votes
Thanks for the info. Information regarding the mention reference would be great. You can send it to leeyanik@yahoo.com. Thanks again.
Flag Thu Aug 23, 2012
David Marcoe, Agent, Seattle, WA
Thu Aug 23, 2012
You have several options
1st Find an owner willing to cary a full note and DOT
2nd Find a seller who will agree to a 80/10/10 loan where they carry 10%
3rd Check with your lender to see if your $500K in equity can be turned into a second large enough to make the full 20% without messing up your ratios.
4th Look for private money to buy something
The list goes on and on you just need a little creativity.
Best of luck
0 votes
Jirius Isaac, Agent, Kenmore, WA
Wed Aug 22, 2012

I think you can do an arm, but you will still need 20%. I am both a loan originator & a real estate broker & help & consult with you about what you would like to do. Feel free to contact me by email at my web site below, or give me a call at 206-841-9976 & I could do more research for you if you are buying in Washington State.

Otherwise, good luck,

Jirius Isaac
0 votes
Ann.ferguson, , Lynnwood, WA
Wed Aug 22, 2012
Your agent should be able to refer you to two or three lenders whom you can consult with to get the information you need, and to choose the best option of the ones they present to you. It sounds like you are a good candidate for a loan for a second home, but there are some rules about the distance the second home must be from your primary residence, and some tax consequences if, for instance, you rent it out part-time -- i.e., how many days you may live in it vs. how many you may rent it out. You will want to speak to an accountant about these if you intend to do any renting of the second home.
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Vera Brodsky, Agent, Bellevue, WA
Wed Aug 22, 2012
Dear Leeyanik, you should talk to lenders and see what options you have for jumbo loan. I know BoA has great jumbo rates! You should also consult with your local RE agent to see what options are available with your house.
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