How Much Down Payment Do You Need for a Second Home in the San Bernardino Mountains?

by Theresa Grant

How Much Down Payment Is Typical for a Second-Home Purchase in the San Bernardino Mountains?

By Theresa Grant, Real Estate Broker | Team Owner | Theresa Grant & Associates Real Estate Partners

Buying a getaway in Lake Arrowhead, Crestline, Running Springs, or Big Bear? Great choice. Here’s what most mountain buyers can expect when it comes to the down payment on a true second home (not an investment property).

Snippet Answer: Most second-home buyers put 10%–20% down for conventional financing. Expect 20%–30% for jumbo loans, condos, or more unique cabins—and 20%–25% if the property is classified as an investment.

What Counts as a “Second Home” vs. an “Investment Property”

Second home: You’ll occupy it personally for part of the year; limited or no rental use.
Investment property: Primarily rented for income or managed like a STR; stricter guidelines and higher down payments.
Tip: Too much short-term renting can push your loan into “investment” territory.

Typical Down Payment Ranges in Our Mountain Market

Conventional conforming loans: Many qualified buyers succeed at ~10% down; 20% down avoids PMI and strengthens offers in competitive areas like Lake Arrowhead Woods.
Jumbo loans (common at higher price points): Lenders often want 20%–30% down—especially for custom cabins, lakeview homes, or limited-comparable properties.
Condos & townhomes: HOA complexity can mean tighter underwriting; plan on 15%–25% down, sometimes more.
Investment/STR financing: Generally 20%–25% down (or higher) and higher rates/fees.

Factors That Push Your Down Payment Up or Down

Credit, DTI, and reserves: Strong profiles can unlock 10% options; weaker files may need 20%+.
Property type & location: Steep driveways, older septic, private roads, or snow access can increase lender scrutiny.
Insurance & HOA dues: In wildfire-prone zones, higher insurance premiums affect qualifying—sometimes nudging the down payment higher to keep ratios in line.
Appraisal risk: Unique cabins with sparse comps may require more cash if the appraisal comes in low.

How Local Buyers Stay Competitive

Get a second-home specific pre-approval from a lender who regularly finances San Bernardino Mountain properties.
Ask your lender for PMI comparisons at 10%, 15%, and 20% down—sometimes keeping cash for repairs or furniture beats chasing a round number.
Budget for winterization, insurance, and snow services so you’re comfortable with the full monthly picture.

Final Takeaway: In our mountain communities, most well-qualified second-home buyers land between 10% and 20% down, but local property nuances can shift that number. As a long-time Lake Arrowhead–area broker, I can help you align the neighborhood, lender, and strategy so your offer—and your budget—work year-round.

Theresa Grant is a Real Estate Broker in the San Bernardino Mountain Communities and the Real Estate Columnist for the Alpine Mountaineer Newspaper. She can be reached at (909) 442-1345.