VA loan experiences? What do I need to know? Challenges to close a deal when on Active Duty?

2020-12-09T03:04:02-05:00

So I’m at the point where my little family isn’t so little anymore. I’m sick of paying thousands a month to everyone else when I could be paying down a house and I hit my DEROS soonish meaning I will be coming down on orders to leave Hawaii. I don’t yet know where I’m headed yet but am working towards recruiting. Unfortunately that doesn’t leave much in the ways of rates/local lenders to look at etc. anyways though, I just wanted to look more into the VA loan and pinpoint what to expect and how to prepare. Right now, we’ve worked hard to pay off all of our debt. We are at a point where we don’t have much if any at all for a down payment so I assume that might be rougher on our payment rate at the cost of 0 debt now. What are your experiences with VA loans? How accommodating to your level of knowledge was the lender/realtor you worked with? If I’m coming from somewhere even with a month PCS leave along with my 10 days for house hunting, has this scenario posed any serious challenges for anyone? Is it possible to find and close on a good property with this window or is that seriously not a good possibility. To be honest I know almost nothing about the process. Probably just word vomiting all my thoughts here... sorry for the disheveled gaggle of a post this has become... essentially any info, personal experience or guidance would be greatly healful and appreciated for me to ponder and look into to see what’s right for me. Thank you in advance!

Response by CW2 Private RallyPoint Member made Dec 9 at 2020 4:47 AM

2020-12-09T04:47:02-05:00

SSG,

Please don’t make the mistake a lot of Soldiers are doing. Just like myself, I made the mistake of getting a VA loan long time ago. Just because it allows you to pay $0 as a down payment doesn’t mean you should do it. You’ll most likely end up with a 30 year contract as well. Meaning that bu the time you pay off that mortgage, you’ll end up paying triple the value of the house. While you are renting, you don’t have to worry about damages such as AC breaking down, roof leakage, etc that comes out of the owner’s pocket. If I was you, I’d get rid of all debt first, have an emergency savings of 3-6 months, save 20% down payment of the house you want. Then buy the house. You want your house to be a blessing not a curse. At the end of the day you do whatever you want just like everyone else but keep in mind, you’ll be broke just like everyone else. Hope you make the right decision. Best of lucks!

Response by SFC Michael D. made Dec 9 at 2020 9:54 AM

2020-12-09T09:54:13-05:00

Find a lender. Get prequalified. Then find a realtor. I had to put down $1000 earnest money that I got back at closing. It's a pretty easy process. Go on ebenifits to learn more.

Response by SP5 Private RallyPoint Member made Dec 9 at 2020 11:13 AM

2020-12-09T11:13:04-05:00

SSG Private RallyPoint Member In addition to getting pre qualified, as SFC Michael D. recommends, you will have to find a seller willing to meet the VA standards for their loans.
Are you going to keep the home after your next assignment ends? if so, you are getting into a long distance landlord area which comes with its own challenges - like being responsible for maintenance, vetting tenants, etc. Something to consider.

Response by SSG Private RallyPoint Member made Dec 9 at 2020 12:10 PM

2020-12-09T12:10:07-05:00

I would highly suggest reading all of USARHAW and HQDA’s publications on leave during covid if you think you’re getting more than 10 days of PCS leave

Response by MAJ Javier Rivera made Dec 9 at 2020 12:54 PM

2020-12-09T12:54:03-05:00

Don’t rush into, take your time. Remember, is not a shirt that if you buy it and later on you don’t like it you toss it away. There are many things to considere such (and this is very hard):
1. Time before next PCS
2. Sell or rent if PCSing.
3. What do you imagine is life after the Army; returning?
4. Etc...

Response by SFC Private RallyPoint Member made Dec 9 at 2020 6:39 PM

2020-12-09T18:39:42-05:00

A house will most likely be the largest purchase of your life, don’t rush it. I recommend waiting until you save at least 20% down and do a 15 year fixed rate mortgage. Don’t get house broke. A good rule of thumb, your mortgage should not be more than 25% of your take home pay. I’d wait a bit on the house for now.

Response by CSM Darieus ZaGara made Dec 9 at 2020 7:10 PM

2020-12-09T19:10:11-05:00

Listen, you need to check the market in your area for resale stats. The interest rates are now at the lowest in decades. You need to remeber hat while your payments may be less than renting you own all of the repairs as well. Heater, HVAC, all appliances, plumbing etc.

Bottom line it to do your research. There are home warranty’s that cover all listed above, while it is about 75 dollars a month. I have found it to be well worth it.

Finally, as stated up front,?you need to know the resale stats, most assignments are for 3 years.