Unlocking Your Second Home

Paying It Down

Lenders aren't as open-armed these days, and rightly so, experts say, amid record-high delinquency rates.

As a result, down payments should be no less than 25% and credit scores at least 660. Investors should fully disclose their income and savings to facilitate the loan process as well.

Finally, cash is king. Homeowners were once quick to take out home equity lines of credit to pay for additional real estate. But with appreciation levels off from their heyday, it's best to combine personal savings with a fixed-rate mortgage to alleviate risk.

That way, if the investment goes bad, you can count on at least one roof over your head.