Applying to PGY-2 MD programs in states requiring DO internship for license

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DO for ophtho

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I am in the process of applying for PGY-2 ophtho spots through the SF match. I applied to programs in both michigan and PA which require a DO internship year to become licensed. Does this mean I could not complete an allopathic transitional year and complete a residency in these programs? Also, I know there is some kind of issue with funding if one chooses to do a DO internship and then apply for an allopathic residency.......something about the last year of residency may not be funded? Can anyone shed some light on these issues?

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