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How Much Do You Need For a Down Payment? 2nd Homes, Investment, Self Employed, Etc

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Published on Apr 13, 2010

http://MortgagesInVancouver.com
Hi, everyone. How are you? It's Leah Coss with The Mortgage Centre. I don't know if this is picking up on the video, but I've got [laughs] the sliding door open, and we've got a crazy amount of frogs outside our place. So try to ignore them if you can hear frogs chirping and my dog growling at miscellaneous things outside. But I wanted to talk to you about down payments because, with all these new rules, there are a lot of rumors going around that the down payment has changed to 10 percent or 20 percent or 15 percent. There's all these different rumors going around, because if you didn't know, April 9th as well as April 19th are two very big days in the mortgage industry. Rules are changing, as of the 9th, with mortgage insurers, and then, on the 19th, the government mandated new rules are coming out. So, I wanted to go over all of the different situations that you could possibly encounter and what those down payment amounts are.
When it comes to a regular, owner occupied place, even if it's an owner occupied place with a basement suite, those are still just five percent down. Nothing has changed there. It's not 10 percent or anything like that. It is five percent down.
Now, one aspect that has changed when it comes to an owner occupied thing is, only for people who are self employed and only, as well, if they are doing the stated income programs that are out there. If you're curious what the stated income programs are, just refer to my blog. It'll tell you some more about those. But only if you are doing the self employed stated income program is your down payment going to be 10 percent. Other than that, any other owner occupied is still just five percent.
Now, if you're buying a second home, owner occupied, so this means like a vacation home, or perhaps you live out in the country and you've got a condo in the city to make it easier for going to work, those are also five percent down, because they're second homes, owner occupied. The only time that you're looking at a different down payment is if it's a rental or investment property. This means it is a home that you are not living in and you're renting out a home or the suites. Those, in those cases, are 20 percent down.
So that's really the only percentages that need to be thrown out there. You've got five percent down for anything that's owner occupied, even if it's a second home, 20 percent down for any rental or investment properties, and only if you're using the self employed stated income program for an owner occupied home is it a 10 percent down.
So, hopefully, that'll clear you up. If you have any questions at all, as always, give me a call. You can also email me. My contact info is on the site. And any questions, I'm always happy to help. Thanks so much.

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