How much down for second property?

4 Replies

My husband and I recently purchased a 2fam property(almost 6 mos ago) using a VA loan and I already want to start thinking about our second property.

Is it too soon to think about a HELOC? How much cash should we have saved before we consider going for it?

We went to our small community bank and were told we needed at least 30% down. Is that standard? 

@Hannah Canario

Did you get the VA loan with 0% down? Then, yes, it's too soon. HELOCs usually max out around 80% LTV.

Sometimes you can get a conventional loan on a 2nd property at 20%,  but usually between 25%-30%.

For an investment it would be at least 15 percent down with it most likely being 20 or more percent

@Hannah Canario

I've done a ton of shopping around conventional loans lately. Below are what I've seen pretty consistently. Keeping in mind I have good credit - miles may vary here. :)

I wouldn't recommend under 20% because then you've also gotta pay PMI.

1-2 Properties:
MFH: 25% (down)
SFH: 20% (down)

3+ Properties:
MFH: 25-30% (down)
SFH: 25% (down)

Thank you all- this was all very helpful and I now have a better idea of where to go from here. I will wait and save up a little more before proceeding. 

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