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Why rent if your a Veteran

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MountieDawg:

Their are great home loan programs for our military veterans. You can get into a home with zero down and never any mortgage insurance. In most cases its cheaper to own than to rent plus there are tax breaks and you are building equity. My father and grandfather were both served our country and that is why I specialize in VA Home Loans. If you have questions shoot me a message or call me at 479-381-8813. I will do all I can to help make you a homeowner.

Boll Hawg:

I did a VA home loan 2 years ago.  It was an absolute nightmare.  Took over 3 months to close.  We used First Security Bank and I place the majority of the blame on our loan officer.  He was a total goober.  I wouldn't wish that experience on anyone.  We did end up with a 3.5 interest rate though. 

The Chief:

Because you're better off renting if you don't have at least a 25% (preferably more) down payment ready to assume a 15 year mortgage.

Rent until you can smartly buy a home.

MountieDawg:


--- Quote from: Nate(wocraig)Craig on January 13, 2014, 11:18:45 am ---Because you're better off renting if you don't have at least a 25% (preferably more) down payment ready to assume a 15 year mortgage.

Rent until you can smartly buy a home.

--- End quote ---

Why would you need 25% down if you will not pay mortgage insurance? Interest rates are likely to rise this year. Most homes right now you can purchase for less than the rent is on the same house. I would be happy to meet and determine which option is better for any Vet. There is no harm or commitment in checking your options to purchase a home.

pigture perfect:

You've given me something to really consider. Would you PM me your contact info so it doesn't get lost, until I have time to consider everything. I am currently paying on a mortgage. Does that make a difference?

Old Tusk:

I would like to see the analysis that shows it is cheaper to buy than rent.

The Chief:


--- Quote from: MountieDawg on January 13, 2014, 08:41:21 pm ---Why would you need 25% down if you will not pay mortgage insurance? Interest rates are likely to rise this year. Most homes right now you can purchase for less than the rent is on the same house. I would be happy to meet and determine which option is better for any Vet. There is no harm or commitment in checking your options to purchase a home.

--- End quote ---

Because there are much smarter ways to buy a house than 0% down.  You get immediate equity with a down payment if you're smartly buying a house.  Plus, with a 15 year mortgage, you own your home in half the time and pay about $100,000 less interest on an average house.  It's much smarter and you save much more than you would by simply not having to pay PMI on a 30 year mortgage.

MountieDawg:

It is great if you have 25% down to buy a house. But many people it would take up to or more than 7 years to save that much money. While all the time still paying rent and flushing that money down the toilet. If you had the ability to pay mortgage payments instead of rent for those 7 years and paid that 25% you were saving for a down payment to the principal as you went along you would eliminate many years off your 30 year mortgage.  Plus all your interest can be deducted on your taxes.

Its much better than paying your landlords mortgage payment. When you rent you still pay a mortgage payment, its just your landlords mortgage payment.


Tejas_Pete:

Why rent if *you're a veteran?

- Flexibility. If you or your spouse are considering a move in the next 2 - 3 years would recommend renting over buying. You may not get anything back for your money but you also won't have all the bills that come with home ownership. Even with the housing market recovering, you really need 15 - 18% equity to be able to sell and fully break even.

MountieDawg:


--- Quote from: Tejas_Pete on January 15, 2014, 11:28:22 am ---Why rent if *you're a veteran?

- Flexibility. If you or your spouse are considering a move in the next 2 - 3 years would recommend renting over buying. You may not get anything back for your money but you also won't have all the bills that come with home ownership. Even with the housing market recovering, you really need 15 - 18% equity to be able to sell and fully break even.

--- End quote ---

If you are not sure how long you will be staying in an area I agree with you. If you plan to live somewhere for more than 3 years it makes a lot of sense to purchase. I would disagree about needing 15 to 18 percent equity to make money on selling your home. There are some great tax credits on interest money on a home loan.

The Chief:


--- Quote from: MountieDawg on January 17, 2014, 12:48:00 pm ---If you are not sure how long you will be staying in an area I agree with you. If you plan to live somewhere for more than 3 years it makes a lot of sense to purchase. I would disagree about needing 15 to 18 percent equity to make money on selling your home. There are some great tax credits on interest money on a home loan.

--- End quote ---

You don't buy a house for the tax credits.  That math doesn't add up.  Anyways, I've said my piece on the subject.  Good luck with your sales.

kodiakisland:


--- Quote from: Nate(wocraig)Craig on January 18, 2014, 10:54:39 am ---You don't buy a house for the tax credits.  That math doesn't add up.  Anyways, I've said my piece on the subject.  Good luck with your sales.

--- End quote ---

If the mortgage and the rent are for the same amount for the same type home, then the math does add up, maybe.  All depends on how much insurance and property tax you pay.

For 2012, my mortgage interest lowered my income taxes by $5028.  My insurance and property taxes were $5037.  So, if I had rented I would have saved $9 for the year, but would have gained no equity.  Of course there are other expenses that come with home ownership that vary from year to year depending on what breaks.

Many people can't put 25% down.  They just don't have it and possibly never would.  Should they never buy because they can't get 25%?  If they paid the same amount of rent for 50 years are they better off than if they had paid that same amount for 30 and ended up owning the house in the end?

We would all be better off if we just paid cash for our houses and never paid any interest, wouldn't we?  Why only put 25% down?

Calvin N Hawgs:

I bought a house only once while I was still active.  It was great, felt real pride in owning my own house...until I got orders.  It took me almost 3 years to sell it, all the while I was having to make the payment.  Ended up losing almost $23k on the deal.  That was a really huge and expensive pill to swallow.

GreenwayTigerHog:


--- Quote from: Calvin N Hawgs on January 30, 2014, 02:46:14 pm ---I bought a house only once while I was still active.  It was great, felt real pride in owning my own house...until I got orders.  It took me almost 3 years to sell it, all the while I was having to make the payment.  Ended up losing almost $23k on the deal.  That was a really huge and expensive pill to swallow.

--- End quote ---

I have a buddy that was in the AF that was on 3 maybe 4 different bases in the States and bought a house at each stop and just keeps them, rents them out to other people stationed there and I guess has made a killing over the years. 

Großer Kriegschwein:


--- Quote from: GreenwayTigerHog on January 31, 2014, 08:04:45 am ---I have a buddy that was in the AF that was on 3 maybe 4 different bases in the States and bought a house at each stop and just keeps them, rents them out to other people stationed there and I guess has made a killing over the years.

--- End quote ---

Slippery slope if you don't use a realtor....

Sueie:

If you go the VA loan route. You better make sure the person you sell it to assumes your VA loan.  If he doesn't and fails to make the payments. Guess who Obama is coming after?

The Chief:


--- Quote from: Sueie on February 04, 2014, 02:37:32 pm ---If you go the VA loan route. You better make sure the person you sell it to assumes your VA loan.  If he doesn't and fails to make the payments. Guess who Obama is coming after?

--- End quote ---

Maybe I don't understand, but why would I have someone assume my VA loan instead of paying off the VA loan when I sell the house?


Großer Kriegschwein:


--- Quote from: Nate(wocraig)Craig on February 04, 2014, 03:17:21 pm ---Maybe I don't understand, but why would I have someone assume my VA loan instead of paying off the VA loan when I sell the house?

--- End quote ---

The certificate can be reused, but when you sell you have to get it pulled from the address... Kinda silly

MountieDawg:

I would recommend not having them assume your loan. If they default on the loan it will follow you on your next home purchase. If you can sell outright, you will not have to worry about them hurting your credit or losing VA entitlement money in the future.

MountieDawg:


--- Quote from: kodiakisland on January 18, 2014, 06:16:59 pm ---If the mortgage and the rent are for the same amount for the same type home, then the math does add up, maybe.  All depends on how much insurance and property tax you pay.

For 2012, my mortgage interest lowered my income taxes by $5028.  My insurance and property taxes were $5037.  So, if I had rented I would have saved $9 for the year, but would have gained no equity.  Of course there are other expenses that come with home ownership that vary from year to year depending on what breaks.

Many people can't put 25% down.  They just don't have it and possibly never would.  Should they never buy because they can't get 25%?  If they paid the same amount of rent for 50 years are they better off than if they had paid that same amount for 30 and ended up owning the house in the end?

We would all be better off if we just paid cash for our houses and never paid any interest, wouldn't we?  Why only put 25% down?

--- End quote ---

With the VA you dont have to put any money down and you get the best interest rate possible... Most often the house payment is less than the rent for the same home. The people renting usually charge a few hundred more than their payment to make money.

Sueie:

How many of you veterans have ever checked into USSA insurance on your vehicles and houses. I do not work for them so it makes me no difference.  But it saved me several hundred dollars by switching over to USSA.

The Chief:

I bank and have home and car insurance through USAA.

SteveInArk:

I have had USAA since I got commissioned .... a LONG time ago.  Now my adult kids have it also.  All insurance, auto, home, umbrella policy, etc.

Not only are the rates usually lower, but the quality of the policy, and the customer service is excellent.

Finally, the Subscriber Savings Account that they fill up for you, and the usual end of year dividends sent back to you in cash, make it even more beneficial.

Pork Twain:


--- Quote from: The Chief on January 13, 2014, 11:18:45 am ---Because you're better off renting if you don't have at least a 25% (preferably more) down payment ready to assume a 15 year mortgage.

Rent until you can smartly buy a home.

--- End quote ---
This and in most cases in the military you are going to move.  It is much easier to get a military clause in your lease than pay rent in one place and a house payment in another.  We just sold our house in Colorado and are leasing in Virginia.  Will not buy again until we are ready to retire.

Pork Twain:

Love USAA

Pork Twain:


--- Quote from: MountieDawg on June 10, 2014, 11:59:02 am ---With the VA you dont have to put any money down and you get the best interest rate possible... Most often the house payment is less than the rent for the same home. The people renting usually charge a few hundred more than their payment to make money.

--- End quote ---
There is a hefty VA loan funding fee that increases the second time you use your VA loan and is essentially the same as the Loan Guaranty program

http://www.benefits.va.gov/phoenix/PDF/RLC/Closing_Costs.pdf

http://benefits.va.gov/homeloans/purchaseco_loan_fee.asp

CPO Hog:

I still bank with USAA, but had to move my insurance. Moved to 10 acre and built a large barn for horses, shop, storage. USAA will only insure "additional" structures up to XX% of the home value. It's been a couple years, but it seems like it was 10%.

Boll Hawg:


--- Quote from: Pork Twain on June 13, 2014, 03:35:05 pm ---Love USAA

--- End quote ---

I love them too, but they've really jacked up their homeowners insurance policies prices.  I've been with them for years and had zero problems, but now everyone I know is griping about their USAA homeowners insurance going up.  Mine went up around $150/yr. for no apparent reason. 

Pork Twain:


--- Quote from: Boll Hawg on July 30, 2014, 11:35:25 am ---I love them too, but they've really jacked up their homeowners insurance policies prices.  I've been with them for years and had zero problems, but now everyone I know is griping about their USAA homeowners insurance going up.  Mine went up around $150/yr. for no apparent reason. 

--- End quote ---
I bet that if you called them, they would be more than happy to tell you why.

MountieDawg:


--- Quote from: Pork Twain on June 13, 2014, 03:35:53 pm ---There is a hefty VA loan funding fee that increases the second time you use your VA loan and is essentially the same as the Loan Guaranty program

http://www.benefits.va.gov/phoenix/PDF/RLC/Closing_Costs.pdf

http://benefits.va.gov/homeloans/purchaseco_loan_fee.asp

--- End quote ---

But much cheaper than PMI associated with FHA. Also, disabled vets do not have to pay the funding fee or property insurance which means a lot on a monthly payment.

DOGALUM:

What's your business Mountiedawg?  You a real estate agent or a loan guy?

CPO Hog:

If anyone applies for a VA load, especially if you're building, make sure everything in your application package (pay stubs, appraisal etc) is current before you lock in a rate. They will jack you around and cause you to run over the 30 day lock period. So far it cost me another $650 to keep the interest rate I budgeted for. May not be done yet. I'm still waiting for the new appraisal ordered by the VA. Not to mention the interest on my building loan I'm still paying.

VA time limit on appraisal is 6 months. The appraise will visit your site, do the cost comparison of similar homes in the area for your loan approval. Once the house is complete he'll come back and verify you built according to plan. If start to finish is more than 6 months you'll have to have a new appraisal/cost comparison.

The Chief:


--- Quote from: CPO Hog on March 30, 2015, 02:36:21 pm ---If anyone applies for a VA load, especially if you're building, make sure everything in your application package (pay stubs, appraisal etc) is current before you lock in a rate. They will jack you around and cause you to run over the 30 day lock period. So far it cost me another $650 to keep the interest rate I budgeted for. May not be done yet. I'm still waiting for the new appraisal ordered by the VA. Not to mention the interest on my building loan I'm still paying.

VA time limit on appraisal is 6 months. The appraise will visit your site, do the cost comparison of similar homes in the area for your loan approval. Once the house is complete he'll come back and verify you built according to plan. If start to finish is more than 6 months you'll have to have a new appraisal/cost comparison.

--- End quote ---

Remember, you're dealing with the government.  The VA home loan is a great program, but there are always stupid rules and regulations that are a pain.  I was set to close on my VA loan a few years ago, and the VA sends a last minute letter saying that before it's approved, they need to see that I have a carbon monoxide alarm installed by a certified individual and need photographic proof along with a paper-work trail consisting of a letter from the certified individual, the receipt for the purchase of the carbon monoxide detector, and the bill for the installation (i.e. showing up at my house and plugging it into an outlet).

Why?  Because I had a ventless fireplace.  Never mind the fact there is no gas utilities in my area, nor is there a propane tank.  The common sense answer was not accepted and I had to scramble and pay $300 for a detector  and the "certified individual" to install it (again, simply showing up and plugging it into the wall).  But, it satisfied the VA and I closed on time.  But still, a pain in the butt.

Boll Hawg:

I went through the process of purchasing a home through a VA loan a few years back and it was one of the absolute worst experiences of the my life.  Tons of stuff was required.  They were never satisfied.  Took almost 4 months to close.  It was ridiculous.  Our very experienced realtor said she'd never seen anything like it. 

CPO Hog:

The VA ordered another survey. The one on record from pre construction wasn't good enough for some reason. The surveyor completely screwed this one up. The 10 to 12 acre lots are staggered (do not share corners) and these clowns used a neighboring property PIN as my corner. It cut about 100' off one side of my property, including my driveway. This constitutes encroachment, and yet another delay.

MountieDawg:

I do VA loans all the time and most of mine are done in less than 30 days. The VA Loan is not the best if you want to do a fixer upper. The VA inspection is set up to protect the Vet from buying a home that will be a money pit.

MountieDawg:


--- Quote from: DOGALUM on January 24, 2015, 07:09:54 pm ---What's your business Mountiedawg?  You a real estate agent or a loan guy?

--- End quote ---

Loan Guy

snoblind:

I'm a Real Estate Agent and an USAA Mover's Advantage agent.  Great program.  If you are looking to buy talk to USAA first to make sure you are assigned to an agent who is part of their program.  Lot's of agents will tell you they can work with you.  They can't, and writing a contract through them will cause you to lose the cash back bonus.

USAA Mortgage?  Not so much.  The worst loan experiences my buyers have went through over the years were with their mortgage department.  I would never personally use them.

Rent vs. Buy?  Depends on your personal situation and location.  Yes, it is great to get 100% financing and your funding fee financed.  But one is if still active duty and get reassigned soon after buying that is an issue if you don't have money to bring to the table when you sell.

Großer Kriegschwein:


--- Quote from: Boll Hawg on January 13, 2014, 10:11:12 am ---I did a VA home loan 2 years ago.  It was an absolute nightmare.  Took over 3 months to close.  We used First Security Bank and I place the majority of the blame on our loan officer.  He was a total goober.  I wouldn't wish that experience on anyone.  We did end up with a 3.5 interest rate though.

--- End quote ---

Goober is one of the most underused words in the english language. I can be used to effectively describe a great many people I have been forced to associate with over the years in the military.

Razorbacks#1:

Just my 2 cents. I built my home in 1993 through the VA. I was paying almost $1200 a month on rent for a nice place. I got my home for 0% down, and paid about $800.00 a month for a 2,000 sq ft. 2 floor home. Although I had to rent it out a couple of times due to military moves, it has been the greatest investment I have made thus far. Its been a long haul, but when you owe more on your vehicle than your house, you realize the end of the road is near at hand. I highly recommend buying a home through the VA, based on my experience. Instead of lining someone's pocket, me and the wife have something that is ours and can pass on to our children to sell, or if they choose live in.

nlrwildcat1:

Hey mountiedawg I sent you a pm

MountieDawg:

I got it!  Thanks and I hope I can help!

Pork Twain:

Now that I am retired, we will be using our VA loan to buy a house in the country here in Virginia, as soon as my daughter graduates.  We are looking forward to that process and love the advantage that the VA offers us.  By that time my disability rating will be back and that will also cut down on our cost.  I still would have never bought while on AD with all of my moving around though.  Too much hassle unless it is somewhere you really plan on retiring to.

OutlawHawg:

New to the board but saw this.....I think it's way better to rent than buy. On average in my 15 year career I've moved every 2.5 years - never long enough to build up substantial equity. I also like not being tied down so if a good job or school assignment pops up I just send my landlord a copy of my orders and deuce out.

Pork Twain:


--- Quote from: OutlawHawg on August 01, 2016, 09:30:34 am ---New to the board but saw this.....I think it's way better to rent than buy. On average in my 15 year career I've moved every 2.5 years - never long enough to build up substantial equity. I also like not being tied down so if a good job or school assignment pops up I just send my landlord a copy of my orders and deuce out.

--- End quote ---
Agree 100%.  You can get a military clause with any rental and showing a set of orders is much easier than attempting to sell when you get a new assignment.

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