how much down payment for second home

[NHborn]

Originally Posted by SOON2BNSURPRISE

I am confused.

You have $50,000 to put down on another home.

You are upside down on your current home.

Your current mortgage cost you $900 a month.

Can you clarify the amount of debt that you have on your current home? $900 doesn't seem like much of a mortgage. Couldn't you pay a significant amount of that debt down with $50,000?

This is what Im probably going to do. I owe 150 on it. Once Im done with repairs Im gonna put it on the market for 100 and see if I get any bites and then just pay the difference and be done with it. I wanted to keep that 50k to put down on my new home so payments would be low and rent this one out until the market recovered more but I don't know about that now.

[NHborn]

Originally Posted by nzone

I have done it, but don't have relative(s) co-sign or anyone else except your spouse. Bank(s) wants to know and you need to provide proof.
1. You and your spouse job must be stable...for example 5 yrs straight no layoff in between.
2. Income support two mortgages without rental income included.
3. Clear your credit debts if you have -- it will help.
4. Credit score needs to be 700+.
5. Enough savings (after closing) to cover 6 months of two mortgages.
6. Make sure to inform the bank that you intend to use your 2nd home as Primary Residence.
7. As primary residence [single-family], you don't need to have 20% down, 10% will do.
8. As primary residence [multi-family], you will need to have at least 20% down. But I got bank to agree at 15% in my case. Large bank...like BofA...20% down is firm.
9. Go to local bank for loans. They are more flexible.

Hope this will help you.

Thank you it does help me a lot. And thank you for answering my actual question and not giving me a lecture I didn't ask for.

[Del Boy]

Why don't you consider renting out a portion of your current home? There are services that cater to this. Some cost, some don't. You can go to this site, it's free and offers some protection. www.sharedfamilyhousing.com

[Del Boy]

edit.