Profile picture for NickBarrett6

Second Home loan with 10% down? -buying with sibling

My goal is to buy a vacation home with my brother and only put 10% down.  Assuming our debt to equity is not an issue, is this possible. It would be in Hawaii, we resdie in California.

  • December 09 2013 - US
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Answers (12)

Buying a second home with 10% down is possible but it may be a little more difficult to find. Either way, the best thing for you to do is to speak with a lender directly to see if you can get started on financing with your situation. There are lenders like myself that would be glad to speak with you to help you get the loan that you need. Well I hope this helps! If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!
  • December 12 2013
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10% down for a second home is certainly doable for single family.  Some lenders have overlays and require more than Fannie/Freddie do, but many don't.  Glad to help if you have other questions, I write loans in all states!
  • December 10 2013
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I can assist with a second home purchase with only 10% down as long as it is a One Unit.

  • December 10 2013
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Profile picture for gator70
Don't let anybody tell you you can't. I have done it and it can be done again and again in this market. There is a interest rate that factors the risk with Fannie Mae, about 1% higher. You can do it without mortgage insurance. 
  • December 10 2013
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Profile picture for JoshBarnettREIB
10% is going to be a tough sale, speak with a local lender in Hawaii and find out your options. 
  • December 10 2013
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Norm and Wayne dead on. It will have to be a Fixed rate for 90%, no Arms. Radian will do the MI with a small bump for 2ND home. As Wayne stated, if it is actually going to be rented 9 months out of the year then that is not a 2ND home and you will need more down payment to finance as an Investment property.
  • December 10 2013
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Sofia is correct.   You can't purchase a 2nd home with 10% down
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well that's a new twist, an agent provides incorrect advice (which is normal) but then a lender agrees? 



My goal is to buy a vacation home with my brother and only put 10% down. 
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A true vacation home mortgage within the conventional-conforming loan limits, you'll find 10% down.offered by many lenders.
  • December 09 2013
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A vacation home that is purchased as a second home residence is eligible for 90% financing. Not all MI companies will provide coverage on a second home and second lien financing for 80 10-10 could be a challenge. If property is rented out for portion of the year, it is considered an investment property and 80% financing would be maximum. Trying to "game the system" is called mortgage fraud........... All borrowers on the loan would need to qualify with existing income, debt, credit, job history, etc.
  • December 09 2013
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Profile picture for gator70
homepath.com and you can do it
  • December 09 2013
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What price range? Condo or House?
  • December 09 2013
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Sofia is correct.   You can't purchase a 2nd home with 10% down.
  • December 09 2013
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Secondary / Vacation homes require at least 20% down. You might be able to find a private or "hard money" lender that might do it for less that 20% down but you will be looking at premium pricing ( that means at a higher interest rate ). Another route is to have the Seller carry a 2nd loan of 10% but the first lender would need to approve that and that might be another road block for you.

 I hope that is a little helpful- you will more than likely need to find a way to come up with 20% in order to achieve the best results. 
  • December 09 2013
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