How Can I Buy a Second Home with No Deposit?
In 2022, the lending market looks a lot different than it did 40 years ago. Conventional loans require a 20% deposit plus three months’ worth of bank statements and payslips. Today, a homebuyer can substitute each of those requirements with alternatives such as collateral. Thus, it’s possible to obtain a mortgage with no deposit to purchase a second home.
A homeowner builds equity in their primary residence over time. Industry insiders believe that it takes five years to build meaningful equity. Equity is wealth on paper. It’s the difference between the current value of the property and the outstanding mortgage amount. If it’s positive, it goes in the homeowner’s favor. Plus, the homeowner can leverage it into other financial endeavors such as purchasing a second home.
Another option is to obtain a bridging loan. The loan covers the 20% deposit. Then, the homeowner obtains a new mortgage to cover the remaining 80%.
Mortgage House remains an innovator in the lending industry. Our loan specialists evaluate each application promptly. They have the tools to pick the best loan products for most financial situations and goals. We offer home loans tailored to the financial needs of second-home buyers. They provide competitive home loan interest rates and terms. To start the process, fill out the appropriate application in-person or online.
No Deposit and Second Home Purchase Conclusion
It’s possible to purchase a second home with no deposit. The homebuyer will simply use other means as a deposit. Mortgage House provides an array of solutions. Contact our loan specialists to start the process.