How much credit can you have?

[Andre M.]

My wife and I own a house and we just bought a beach property. We did the beach condo as a 2nd home (I did it truthfully with the bank, and they know i am doing it as a STR...incidentally, they required I self manage if I wanted to call it a 2nd home). I am still very interested in the Smokies (working with Avery's team/Gennifer), but I would also need to do this as a 2nd home. I am not sure I can even call this a 2nd home when it is actually my third "home." Can I even have 2 vacation homes in addition to my primary residence?

But, to my original question, at what point do banks stop allowing me to borrow money, because I have borrowed too much? When I google search this, it just talks about credit cards. I know if I had a STR "business," they would let me use that income to borrow further properties. I do not, though. But since I am going for another vacation home, at some point, will they not pull the plug and say "nope. too much." My wife and I both work and have good income. I am sure that matters in whatever mathematical formula I am trying to find.

So finally, what is the formula to see how much money I am allowed to borrow?  I do not want to go through the whole process and then realize I am not a candidate for borrowing more.

[Luke Carl]

@Andre M.

You can have as many second homes as you want assuming the following:

A. They must be in different markets (actual regulation is more than 65 miles from your primary home and more than 65 miles from each other)

B. You have enough DTI to cover said properties. In other words "can you afford to pay all of these mortgages."

Just Google "DTI Conventional second home" Or even just ask whatever lenders you're working with or have worked with :)