For example, if the builder estimated the home would be worth $250,000, and you need a $200,000 loan to complete construction, the lender is extending a loan worth 80 percent of the value of the property. This means your down payment, i.e. the value of the lot, would need to be 20 percent. Step. Provide additional down payment where necessary.
Under Fannie and Freddie Second Home Financing Guidelines, the minimum down payment required for second homes is a 10% down payment: Second home financing is different than investment home financing; Investment home financing, the minimum down payment requirement is normally 20% to 25%
· You can buy a second home with IRA money, but there are some restrictions that you must know about. If withdrawn funds are not included in one of the penalty-free exclusions, you will have to pay a 10 percent penalty on all funds that are withdrawn to make your purchase.