Down payment requirements 2nd home

[Creditspa]

I have a home in a beautiful neighborhood that I cannot sell right now. The house in underwater by 10%. I don't want to short sale (to keep credit clean) or anything like that so I am concisdering renting it out for a few years. High rental demand by professionals in this area. The mortgage in about $2200/month. I can rent for a little more than this and break even or better on the mortgage. I will have to find/pay HOA fees of about $165/month for this home.

Question(s)

We would like to buy a larger 2nd home nearby(less that 10 miles away). What type of downpayment will our second home lender require (not using the rental as income)? Will it be a 5%, 10% or 20% down? What kind of DTI ratio is allowed by lenders now-a-days.? The second home will then become our primary home? 

[boomhower]

Typically you are going to be looking at 60% because they are going to treat it as an investment property since it's  your second.  Unless of course you refinance your first home as an investment property but obviously you aren't looking to do that.