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Old 07-01-2007, 09:11 PM
126 posts, read 572,962 times
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If so, how did it work out? Was it worth it as far as monthly payments for no down payment? We're a young family and income shouldn't be a problem in qualifying for a loan, however, we'll only have about 7 percent down payment available and we'd think it would be better to do the VA loan with 0 percent down and save our money for long-term savings.

Any input? Experiences -- good or bad?

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Old 07-01-2007, 11:47 PM
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We did a VA no-no two years ago. We had no problems. At the time it seemed like paying 6.4% interest was high, but it doesn't really seem so bad now. We built the closing costs and down into the loan, we only paid about $1000 total up front. The main reason it worked for us was we got a really good price on the house, and we were able to do some easy cheap cosmetic improvements to the house ( paint, cleaned up the yard, etc.). It built our equity fast. If you buy new or pay top dollar you could be a little backwards with doing what we did, so you have to be careful.
The housing market is pretty sluggish, so make sure your house payment is reasonable and affordable. You won't be able to sell the house right away if you get over your head,and need to sell. We built our taxes and insurance into our house payment which added a few hundred a month to our payment, but it insures that they are paid when they are due. When you get your truth in lending good faith estimate, always tack on a few hundred a month more than they are estimating and ask yourself, " Can we easily pay this?"
Don't forget you will get to write off all the interest on your taxes, which is a big benefit too.
Finally, some sellers were scared off by a VA loan because it required some extra paperwork and inspections, but we got lucky . The seller of our house was a retired Marine, so he was more flexible about the VA loan requirements.
Almost forgot, also, with 7% down you will need to pay a PMI with a conventional loan, but with a VA it is not required.
Good luck, I hope this helps
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Old 07-02-2007, 10:16 AM
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We too are looking into buying our first home. My husband is retiring this Sept. Thanks for the great info!
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Old 07-02-2007, 01:48 PM
126 posts, read 572,962 times
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That's great info. We're definitely looking at older houses so it doesn't sound like we'll be set back too far. 1000$ down sounds great -- esp. when you can use the rest of the down payment to pad up your savings. Thanks!!
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