My question is do I have to transfer funds to my checking/ savings account and let it "season" for 60 days before using it for down payment/closing costs for the purpose of getting a mortgage?

My wife is not part of the loan.I am planning to buy a 2nd and vacation home (80 miles away) from the primary residence.I would like to use the low down payment to purchase this property.

Here's what is says about Home Prices:Home values appreciated in 49 states and the District of Columbia over the year between the second quarter of 2015 and the second quarter of 2016, according to the Federal Housing Finance Agency’s purchase-only, seasonally adjusted index.

You could get a no income verification, no title seasoning, cash out loan (the rate is above bank financing, but certainly below hard money commercial) and pay back your family/friend.  

Often this will be in lower class neighborhoods where that higher rent to value ratio compensates for higher tenant turn over and other related issues.There are places where you will only hit 1% or 0.8% but tenants are low maintenance, properties are in good repair and that kind of return still makes sense.Regardless of which rule you follow, you will still need to analyze the entire deal and determine if it really cash flows.If a property that fits the 0.8% rule cashflows $300 a month and another property that fits the 2% rule cashflows $50 a month, which would you prefer?

One of the posts that was removed, probably because it was an advertisement, mentioned a cap rate below 7%, which is very low compared to other markets.  

Mary, keep in mind that if your target is likely a builder, they don't work on the same seasonal time frame the average home buyer is on.

Passive house building standards are aiming a low but not zero energy costs. 

I agree that 8% is probably low in Houston, especially as we look to the next year.  

yr 2000 or newer, low rehab for $25k or less.