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Investment Property

How Much Cash Do I Need to Buy a Second Home?

Posted on
October 13, 2020
by
Ben Lemon

 

Anytime you purchase a second home that is not your primary residence, it is labeled as an Investment Property or Second Home in the mortgage world.

Non-Primary Residence

This just means you have a second home that is either used for a rental property or a vacation home. Anytime you have a loan on a property that is not your primary residence, there are just a few simple rules that apply to your loan. Of course every situation is unique, so please call and talk to a loan officer to see what your exact numbers would look like in your situation.

But in general:

  • At least 10% is required for a second home

  • You are subject to a higher interest rate then what you could qualify for on a primary residence

If you are interested in what your interest rates or what you will qualify for on a second property, please reach out to us here at The Ben Lemon Team today!

 

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