Is it true that down payment for a second house purchase is 10%?

Question

We are looking for an STR in the Tampa area. We are from DC and when looking at cabins for a STR here in VA, our real estate agent told us since we already have 1 mortgage, the second house purchase would have to be a 10% down instead of 3%. Everyone I asked about this said this is not true. Please advise.

Kenneth Garrett · Answer

@Valentina El Frih

I used a second home/vacation home for my STR.  10% down.  I had to agree to use it 14 days a year, which was no problem to enjoy family time there once or twice a year.  I could not have a lease on the property (more then 30 days), but STR no problem as long as stays are less then 30 days, which typically is the case.

Raymond J. Rodrigues · Answer

@Valentina El Frih 3% down payment is for primary residence buyers only. 10% is the minimum you can put down for an investment if purchased as a second home. I am a licensed lender in Florida. Feel free to reach out with any questions.

Lyndsay Zwirlein · Answer

If you use the property for 2 weeks of the year, you can utilize a second home/vacation home loan which is minimum 10% down.

If it's strictly to be used as an investment home, there is a conventional home loan that only requires 15% down.

Ivan May · Answer

@Valentina El Frih

Definitely call around to different lenders. I was under the same assumption for a secondary residence (10% DP), but was on a call with a credit union last week and came across a 0% DP option for secondary (Non-VA). I had not heard of this before in the past, but some credit unions have their own products that you can tap into. I would check with some local credit unions or credit unions near where you plan to purchase.

Nathan Patterson · Answer

Speak with a lender about your situation, they will be able to tell you specifics.  I know for Conventional it is 20-25% plus any points.

John C. · Answer

@Valentina El Frih

Call and talk to the bank or broker, your real estate agent doesn't specialize in mortgage loans.....

Kenneth Garrett · Answer

Yes, this was in Florida and I was living in Illinois.

Is it true that down payment for a second house purchase is 10%?

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