Profile picture for oscar21la

I am a current homeowner but would like to purchase a nicer home in a nicer neighborhood but

I can't afford giving 20% down. Are there any programs or tips for a second home buyer?
  • January 15 - Southeast Los Angeles
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Answers (8)

Dear Oscar,
There are some loans where you can put down 10% I am closing a property now where the borrower has a 10% down payment.
  • January 16
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Oscar you have options.  there are program available including FHA that will help you qualify for little down payment,   my question is are you looking to sell your current home or Rent / lease it out, and if the answer is to sell it you can have the equity of the current home plus saving as down payment toward your future home. 

if you plan to Rent/Lease it you would need to have a rental agreement in hand to help offset some of the current mortgage payment to help you qualify for the new home.  

The Debt to income ratio for qualification purposes have drop this year to 43%, which means you would qualify for less this year than last year. FHA you can still currently qualify up to 49% Debt to income ratios including MIP (mortgage insurance premium) you would need to check with a lender verify the program you qualify for. 

I hope this helps if there are other question please don't hesitate to contact.
  • January 16
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Profile picture for JessicaAggson
Yes there are a lot of different lending programs out there. I would suggest meeting with a couple different local lenders that can give you advice and help you find the right program that works for you. Good luck to you.
  • January 16
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Hi Oscar,

There are many potential options for you to buy your second home without 20% down.  One factor that will determine some of your options is the amount of equity you have in your current home.  Another factor will be the type of financing that you used for your first home - VA, FHA, etc.

I'm a local lender helping clients reach their home ownership goals throughout Los Angeles County.  Please contact me for a consultation, and I'll be happy to go over your options and help you build a plan to reach your goal.
  • January 16
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There are other options that are still available to you. For example, there are conventional loans that can be done with 10% or 5% down as well. This may be a better route that you should consider in your position. You should check out Southern California lenders like myself that could help you out. Either way, the best thing for you to do is to speak with a lender such as myself to see if you can get started on financing a new home. If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!
  • January 15
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Profile picture for BillRyan60
There are programs that can help you. Contact a good mortgage lender. Some banks have a more limited group of loans to work with. I closed a deal with a second home buyer in the end of last year. They only needed 5% down and got a pretty good rate. You will pay a little higher interest rate with most 2nd home loans.
  • January 15
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Hello, This is best answered by having a one on one conversersation with a local Realtor. Best, Susan Bo'ur Realtor/Coldwell Banker Santa Monica
  • January 15
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Profile picture for wetdawgs
What are your plans for your current home?    Selling it first will make it much easier. 
  • January 15
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