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Rudy Mcdowell's Blog

By Rudy R. McDowell | Mortgage Broker
or Lender in Bloomfield Hills, MI

VA FINANCING: PURCHASING A SECOND HOME


Conversion of Principal Residence to a Second Home

This information is for veterans looking to use their Certificate of Eligibility to purchase a new second home:

- Both mortgages combine can not exceed $417,000 VA loan limit
- Both the current and proposed PITI must be used to qualify the borrower for the new loan
- Minimum reserves of 6 months PITI for both properties are required. However, only reserves of 2 months PITI are required for both properties if 30% equity in the existing principal residence is documented with:

   - 30% equity can be established via an appraisal or mortgage statement showing it  has been paid down by 30%.


Qualifying Ratio:
Maximum qualifying debt-to-income ratio is 41%. Ratio may be exceeded with an acceptable AUS certificate.

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