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Posted: Fri Jul 18, 2008 6:01 am Post subject: VA certificate on 2nd home

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?

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

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

jasonpolito · Posted: Fri Jul 18, 2008 7:08 am Post subject:

Have you calculated your DTI with the provided calculator yet? Let us know when you do this please.

Posted: Sat Jul 19, 2008 3:09 am Post subject:

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.

Posted: Sat Jul 19, 2008 3:23 am Post subject:

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.

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VA certificate on 2nd home