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Guest
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 Posted: Fri Jul 18, 2008 6:01 am Post subject: VA certificate on 2nd home |
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| 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? |
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 larry
Joined: 27 Jun 2007
Posts: 3328
474.49 Dollars($)
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| Posted: Fri Jul 18, 2008 6:35 am Post subject: |
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Hi Guest.
Welcome to the forum.
I think you can use your VA certificate to buy the new home. But as you already have a mortgage I think your DTI ratio will be higher. Your DTI ratio should be less than 40% to get approve for the VA loan. Calculate your DTI ratio with the calculator at http://www.mortgagefit.com/calculators/diratio.html
Feel free to ask if you have any further questions.
Best of luck.
Larry |
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jasonpolito
Joined: 07 Jul 2008
Posts: 28
Location: Richmond, VA
8.93 Dollars($)
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| Posted: Fri Jul 18, 2008 7:08 am Post subject: |
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Have you calculated your DTI with the provided calculator yet? Let us know when you do this please.
_________________
Financial consultant with a credit counseling concentration. |
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Guest
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| Posted: Sat Jul 19, 2008 3:09 am Post subject: |
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| 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. |
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Guest
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| Posted: Sat Jul 19, 2008 3:23 am Post subject: |
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| 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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