Whether you’re looking for a second home as a cozy getaway spot or a savvy investment, one of your first questions is likely: What down payment will I need for a second home? In this post, we provide insights into the financial nuances of buying an additional property to help you unlock your real estate aspirations. We’ll share the minimum down payment requirements and provide tips to possibly secure a second home without an upfront payment. Buying a second home isn’t just a financial decision; it’s often a choice that reflects your lifestyle or long-term goals. Here are some of the most common reasons homeowners decide to invest in a second property: When buying your first home, you typically have more financing options that break the “20% down payment requirement” myth. In fact, on average, most first-time homebuyers place a down payment of just 8%. But with a second home, most lenders require a minimum down payment of 10%. However, the minimum down payment required can vary widely depending on several factors, including the lender’s policies, the property’s location, and how you plan to use the home. Here’s a closer look at what you can expect: In the table below, we provide a set of example down payment amounts based on a range of property values above and below a median home price of around $400,000.Common reasons people buy second homes
What’s the minimum down payment for a second home?
Second home down payment examples
Home price
10% down
15% down
20% down
25% down
$200,000
$20,000
$30,000
$40,000
$50,000
$300,000
$30,000
$45,000
$60,000
$75,000
$400,000
$40,000
$60,000
$80,000
$100,000
$500,000
$50,000
$75,000
$100,000
$125,000
$600,000
$60,000
$90,000
$120,000
$150,000
$700,000
$70,000
$105,000
$140,000
$175,000
$800,000
$80,000
$120,000
$160,000
$200,000
