The most common way to own two homes with a low down payment is to move into the new property as your primary residence.
Standard conventional loans for "second homes" (strictly for personal vacation use) usually have higher minimums than primary homes.
If you are determined to keep your current primary residence and buy a second one with 5% out-of-pocket: How to Make a Down Payment for a Second Home how to buy a second home with 5 down
: Any down payment under 20% will require Private Mortgage Insurance (PMI) , which increases your monthly cost.
: You convert your original home into a rental or a vacation property. The most common way to own two homes
: Lenders like Rocket Mortgage will require you to prove you can handle both mortgage payments, though you may be able to use potential rental income from your first home to help qualify. 2. Conventional Second-Home Loans
Buying a second home with only 5% down is technically possible but rare, as most traditional second-home loans (vacation homes) require . To achieve a 5% down payment, you generally must use "primary residence" financing strategies or specific niche programs. 1. The "Buy-and-Convert" Strategy (Most Common) : You convert your original home into a
: You purchase a new home with a conventional loan (5% down) or even an FHA loan (3.5% down) .