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momofone
LIF Infant
Member since 10/13 174 total posts
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Buying your second house
How much do you need for a downpayment for a next house? Not looking to have two homes, but i know requirements for first time homebuyers are a bit different when you are moving into next house...
thanks!
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Posted 10/1/15 9:00 AM  |
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Prudential Douglas Elliman Real Estate
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NYCGirl80
I love my kiddies!
Member since 5/11 10413 total posts
Name:
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Re: Buying your second house
 Unless you plan on taking out an FHA mortgage, typical down payment is 20%. It doesn't matter if it's you first or 15th house.
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| Posted 10/1/15 9:21 AM |
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KarenK122
The Journey is the Destination
Member since 5/05 4431 total posts
Name:
Karen
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Buying your second house
We just bought our second house last year with 10% down. If you have 20% that would be best so you don't pay PMI. You can buy as many houses as you want as long as you have the funds/salary to cover the mortgages.
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| Posted 10/1/15 9:55 AM |
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Ian&EmmesMommy23
My family is complete!
Member since 11/08 12970 total posts
Name:
Diana
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Re: Buying your second house
i put down 5% with an FHA loan
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| Posted 10/1/15 10:57 AM |
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TheDivineMrsM
2 girls 4 me!
Member since 8/08 7878 total posts
Name:
Mama mama mama....
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Re: Buying your second house
Posted by KarenK122
We just bought our second house last year with 10% down. If you have 20% that would be best so you don't pay PMI.
Same here. We bought with 10% down with a conventional 30 year mortgage. We have great credit and could make the payments. For us, PMI will come off in about 6 years.
Message edited 10/1/2015 1:09:28 PM.
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| Posted 10/1/15 1:08 PM |
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HomeIsWithU
Baby #2 on the way!
Member since 9/07 7816 total posts
Name:
Jenn
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Re: Buying your second house
Our first house we put down the full 20%. This one needs more work so we only put down 16% so that we have some extra money in the bank for renovations when we move in.
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| Posted 10/1/15 1:19 PM |
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MrsG823
Just call me Mommy.
Member since 1/11 5570 total posts
Name:
S
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Buying your second house
It doesn't matter how many homes you have purchased the mortgage process is the same. You can put down whatever amount you want but if you put down less than 20% you will pay PMI. The rules for FHA loans changed in 2013 and you now pay mortgage insurance for the life of the loan where previously this was not the case.
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| Posted 10/1/15 8:31 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19458 total posts
Name:
L
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Re: Buying your second house
Buying and selling simultaneously can be difficult. What some people do is look for a bridge loan between buying and selling when their closing is a day or two apart. What other people do is sell first, put everything in storage, and either rent temporary housing or live with a relative for a few weeks or months between buying and selling. Another option, is qualifying to carry two homes simultaneously, and find the buy house, and sell the other house afterwards. The last option is retaining he first home, and using it as a rental property.
You want to have 20% as a down payment for the new home. Many use the equity gained from the first home sale to use as a down payment for the second home. Less than 20% down payment will require pmi. Down payments are achieved with saving money, gifts, inheritance, and/or the sale of your first property for most.
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| Posted 10/2/15 7:40 AM |
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Millie3
LIF Adult
Member since 7/13 1280 total posts
Name:
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Re: Buying your second house
We did 20% because the PMI is expensive
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| Posted 10/2/15 10:30 AM |
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WonderLady
LIF Infant
Member since 1/15 355 total posts
Name:
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Re: Buying your second house
Posted by NYCGirl80
Unless you plan on taking out an FHA mortgage, typical down payment is 20%. It doesn't matter if it's you first or 15th house.
Untrue. There are 3%, 5%, & 10% conventional products.
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| Posted 10/2/15 6:12 PM |
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MrsB12614
LIF Adult
Member since 4/14 1986 total posts
Name:
Mrs
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Buying your second house
I just did 5% down. We qualified for a PMI buy out at closing so we are buying out. If we didn't PMI would be $96 a month for us. Anyway 5% down is a conventional loan for us. I think there's multiple conventional loan products. I got a packet from my loan officer about different mortgages available I'll see if I can find it if you want more info?
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| Posted 10/2/15 8:20 PM |
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bella321
Blessed!
Member since 3/09 1952 total posts
Name:
Kristy
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Re: Buying your second house
Posted by Millie3
We did 20% because the PMI is expensive
Not to hijack but how much is PMI?
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| Posted 10/4/15 9:54 AM |
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MrsB12614
LIF Adult
Member since 4/14 1986 total posts
Name:
Mrs
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Re: Buying your second house
Posted by bella321
Posted by Millie3
We did 20% because the PMI is expensive
Not to hijack but how much is PMI?
Depends on the loan, your debt to income, credit etc. multiple factors play in.
For example, two people can purchase a house at the same price, same down payment etc. however one person my have pmi significantly higher than the other due to credit scores and debt to income ratio. Mortgage brokers can calculate easily for you.
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| Posted 10/4/15 11:22 AM |
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NYCGirl80
I love my kiddies!
Member since 5/11 10413 total posts
Name:
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Re: Buying your second house
Posted by WonderLady
Posted by NYCGirl80
Unless you plan on taking out an FHA mortgage, typical down payment is 20%. It doesn't matter if it's you first or 15th house.
Untrue. There are 3%, 5%, & 10% conventional products.
I meant if you also want to avoid paying PMI. And I said "typical" because many sellers want to see you have a significant amount to put down, so they feel more confident you'll get approved for a mortgage and be able to close no issues.
Message edited 10/5/2015 8:20:04 AM.
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| Posted 10/4/15 1:29 PM |
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TheDivineMrsM
2 girls 4 me!
Member since 8/08 7878 total posts
Name:
Mama mama mama....
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Re: Buying your second house
Posted by bella321
Posted by Millie3
We did 20% because the PMI is expensive
Not to hijack but how much is PMI?
If you go into a mortgage calculator on MLS, it actually gives you a number. I wouldn't take that number as gospel but it's a good starting point.
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| Posted 10/4/15 8:56 PM |
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