We were just told yesterday we would have to have 3 months PITI for each of our rental properties and our current home we plan to make a rental. I did some research and saw that if the rental is secured by a VA loan this doesn't apply. Can the lender still make this a requirement? This is why I hate working with builder lenders because they have a history of requiring things that seem outrageous sometimes. I know this isn't one of them but it would keep us from having to keep this money in the bank for no reason.
Starting Score:TransUnion: 698 (12 FEB 2010), Equifax: 674 (12 FEB 2010)
...there are two types of VA loan rules ...those that apply to what the VA itself requires ...and those that limit what a VA lender themselves may require of the veteran
...the lender can apply any overlay he likes as long as it doesn't violate the VA rules ...the fact that VA itself does not require the reserves does not mean that the lender can't unless the VA stipulates that they can't
...you should ask the VA which it is in your case
