Loan Requirements for a Second Home
|Debt to Income||36% (or less)||36% (or less)||45% (or less)||45% (or less)|
|Minimum Down Payment Percentage||25%||10%||25%||10%|
|Source - FANNIE MAE ELIGIBILITY MATRIX|
Maximum loan amount
See jumbo loan for further information.
Seller paid closing costs
Fannie Mae second home mortgage guidelines allow the seller to pay a percentage of the buyer's closing costs.The amount of the seller concession is determined by the percentage of the down payment.
Frequently Asked Questions About Second Home Mortgages
Q. Is it possible to use a VA loan for a second home?
A. A second residence mortgage is not available by the VA; only homes that are occupied by the owner are eligible.
Q. Can an FHA loan be used for a second home?
A. The FHA does not permit second home financing. But, there are employment-related exceptions. See Can I get an FHA loan for a second home? Second home guideline
Q. Can I rent my home?
A. In most circumstances, conventional and FHA home loans require a minimum of one year of occupancy before renting the property. Before converting the dwelling to a rental home, it's a good idea to talk to your lender before making the conversion.
Q. Can I buy a vacation home with a VA loan?
A. The VA home loan program is only for primary residences that are owned by the borrower. Second home financing is prohibited.
Q. Can I buy a second house with a FHA loan?
A. Yes, technically. If certain conditions are met, the FHA will approve a second mortgage.
Q. Can you buy a second house with less than a 20% down payment?
A. Most likely. The amount of money needed for a down payment is determined by the debt-to-income ratio.
Q. Can a USDA loan be used to purchase a second home?
A. If your current loan is a USDA guaranteed loan and you have lived in the house for at least three years, you are allowed to utilize it as a second residence.
Q. Can you qualify for a mortgage based on projected rental
A. Fannie Mae requires that if the subject property is used for qualifying purposes and will produce rental income, one of the following Fannie Mae forms be used to demonstrate the property's income-generating potential:
Single-Family Comparable Rent Schedule (Form 1007) (supplied with the corresponding appraisal report) for one-unit residences, or
Small Residential Income Property Appraisal Report is for properties with two to four units (Form 1025).
For second home finance, see Fannie Mae's criteria. Fannie Mae guidelines for second home financing
Q. How much of a second-home mortgage can I afford?br /> A. Contact the lender who handled your present home's mortgage or a loan officer at your bank.
Q. What is the current second-home mortgage rate?
A. See the list below.