Does an underwater mortgage stop me from purchasing real estate?

[Charles Granja]

Hello,

I have a question on a scenario:

From what I am aware on QM loans, what matters is my credit score (history of paying debt service), my income (W2/DTI), my rental property income (2-years), and cash reserves.

Let's say that I purchase a primary residence with a VA loan and the market continues its downward trajectory. If next year my property loses 20% of its value, will this affect my ability to purchase more real estate? Assume 100k underwater.

Would love to hear any advice regarding this scenario. Thanks in advance! 

[Account Closed]

Quote from @Charles Granja:

Hello,

I have a question on a scenario:

From what I am aware on QM loans, what matters is my credit score (history of paying debt service), my income (W2/DTI), my rental property income (2-years), and cash reserves.

Let's say that I purchase a primary residence with a VA loan and the market continues its downward trajectory. If next year my property loses 20% of its value, will this affect my ability to purchase more real estate? Assume 100k underwater.

Would love to hear any advice regarding this scenario. Thanks in advance! 

Not likely to be a problem as long as you keep making the payments on time.