Second Home - Down Payment

[Jerika Demos]

Hello everyone! 

My husband and I are interested in purchasing a third property as a Second Home.  Although we are willing to wait to make the purchase until we have the full 10% down, we would prefer not to.

We currently own two homes:

Investment (LTR) - we did a cash out refi at the end of last year.

Primary Residence - We went under contract in Sept. '21 and closed March '22, which gives us +/- $100,000 in equity. I am currently working to see if a HELOC is even a possibility with this property yet. I am thinking not likely, but I had to at least ask.

My husband does have a 401k, which we gave a quick look at pulling money from for a down payment, however the tax penalties would only provide us with a loss. 

Taking a personal loan out could be an option. What other suggestions might you all have? 

Thank you very much for your input and time. 

<3 JD