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2nd home down payment

I am looking to purchase a second home as my primary residence and convert my current one into a rental property. Can I do this and put less than 20 percent down?
  • March 30 2014 - US
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Answers (6)

This is possible but there is more information that would be needed from you in order to give you a definite answer. One thing to keep in mind is to make sure you have lived in your current home more than 12 months if you have an FHA mortgage for that property. FHA requires you to live in that home as w primary residence for 12 months. Either way, you are no longer considered a first time buyer whether or not you used FHA. So you can purchase your next home with possible less than 20% depending on your current equity. The best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!
  • March 31 2014
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Profile picture for PaulMcCausland
The answeer to the question is Yes, however it comes with some restrictions.
I'm here to help,
Paul
  • March 31 2014
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Equity and credit play a role in the percentage for the down payment. Good luck.
  • March 31 2014
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On conventional lending: If you have at least 30% equity in one of the properties you will not be required to show six months of payments for both homes. Otherwise you will need to show the reserves of six months for both properties. Good Luck!
  • March 30 2014
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Profile picture for wetdawgs
how much (%) equity do you have in your current home?

  • March 30 2014
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Yes. You can certainly put 5% to purchase a second home. Good Luck!
  • March 30 2014
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