Posted on: 25th Feb, 2010 09:34 am
I live in another state and my Son lives in Houston. I want to purchase a secondary home in The Woodlands. I have been told I cannot use FHA and must do a Conventional Loan. My question is, since it is a secondary home and not my primary residence how much down payment will I need for a conventional loan. I have been told 10% and 20%.
Hi rknecht,
Generally, you will have to put a down payment of 20%. If you are unable to do so, you may have to go for private mortgage insurance. However, now-a-days, lenders are not ready to give a new loan to buy a second property if you already have mortgage on your first property. It will be difficult for you to find a lender to approve you for a loan to buy second property.
Thanks
Generally, you will have to put a down payment of 20%. If you are unable to do so, you may have to go for private mortgage insurance. However, now-a-days, lenders are not ready to give a new loan to buy a second property if you already have mortgage on your first property. It will be difficult for you to find a lender to approve you for a loan to buy second property.
Thanks
Most require 20% down. If you make enough income to carry both loans and your credit is 660+, you shouldn't have an issue finding a mortgage.
