VA Loan assumption

[Carlos Hernandez]

Hello I have been looking in the forum for similar questions but I couldn’t find anything if you guys have seen something similar please guide me in the right direction.

I am currently in the military and used my VA loan to buy my current home. Recently I have been offer to assume a VA loan from a friend. He will keep his VA entitlements attached to the loan. My question is does my DTI ratio is going to be a factor even if I am try to rent this property.? This a duplex where the current owner owes around 770k and he wants 60k for his equity and low rate,(2.75%). Property is currently being rented out for 5k and monthly payment is 4K so it is going to be a cash flowing property . It all sounds like a good deal but my current home and cars take around 60% of my income .

[Eliott Elias]

Yes it will, you would much rather subto the deal and keep the financing in your buddies name.