Posted on: 18th Jul, 2008 06:01 am
I am currently trying to sell my home and purchase a second home as my primary dwelling. My current home is not selling as fast I expected. I have a VA certificate that I have not used and would like use towards my second purchase. Can I use my VA certificate on the 2nd home, prior to selling tthe home I am currently living in?
Hi Guest.
Welcome to the forum.
I think you can use your VA certificate to buy the new home. But as you already have a mortgage I think your DTI ratio will be higher. Your DTI ratio should be less than 40% to get approve for the VA loan. Calculate your DTI ratio with the calculator at http://www.mortgagefit.com/calculators/diratio.html
Feel free to ask if you have any further questions.
Best of luck.
Larry
Welcome to the forum.
I think you can use your VA certificate to buy the new home. But as you already have a mortgage I think your DTI ratio will be higher. Your DTI ratio should be less than 40% to get approve for the VA loan. Calculate your DTI ratio with the calculator at http://www.mortgagefit.com/calculators/diratio.html
Feel free to ask if you have any further questions.
Best of luck.
Larry
Have you calculated your DTI with the provided calculator yet? Let us know when you do this please.
Have a LO run this for you. Calculators go only so far. VA has a "net residual" income test also ... actually it's supposed to the primary one. It can sneak up on you relative to the DTI test depending on family size.
If there is a VA guaranteed loan on your existing home, there's a whole new set of issues -- partial guaranty or restoration, dramatic jump in funding fee (although you can negate via downpayment.