U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-11-2018, 06:27 AM
 
Location: SW Florida
9,116 posts, read 3,932,227 times
Reputation: 18792

Advertisements

I bought an older house recently with zero down and a VA mortgage. However my payments were less than paying rent and I did have a small cushion in the bank after doing repairs. Is his mortgage payment going to be cheaper than what he is paying for rent now? If something breaks does he or his father have the experience to make repairs? What is he going to do if his refrigerator breaks? As I have found owning a house can be expensive. It does sound like he is living on the edge if he has to start a GoFundMe to pay his veterinarian. He may need a roommate to help pay expenses.


Also, he needs to confirm what his taxes are going to be. I got an unpleasant surprise last month when it turned out I had an escrow shortage. My payments went up $251 for the next year and then between the Homestead & Widow Exemptions they should go back down to what they were when I first closed.
Reply With Quote Quick reply to this message

 
Old 02-11-2018, 07:01 AM
 
Location: MID ATLANTIC
7,601 posts, read 17,629,190 times
Reputation: 8084
If the bathroom is in dismal shape, the appraiser will require repair prior to closing. If it's outdated, the work can be done post closing.

Some people live month to month. But in the DC area where rent can be as much or more than a housing payment, buying VA NMD makes sense. Heck, if he gets a roommate, he can come out ahead. I understand the dog surgery more than I want to. I spent a small fortune on my pup a year and a half ago, and dont regret a dime.

Is he crazy to take so much on his plate? Who are we to say? Just like some thrive under pressure, he may be on that has to live on the edge to get where he wants to go. Could I live like that? No way. But many do.
Reply With Quote Quick reply to this message
 
Old 02-11-2018, 07:21 AM
 
4,738 posts, read 2,264,388 times
Reputation: 6120
Quote:
Originally Posted by oregonwoodsmoke View Post
No down through the military option. He qualifies for a VA mortgage. Yes, it is fairly common for veterans to buy through the VA program
It is also fairly common for vets to end up losing their homes. Buying a house is a huge life decision. Too many people are too irresponsible to go in with no money.
Reply With Quote Quick reply to this message
 
Old 02-11-2018, 08:21 AM
 
Location: Rochester, WA
3,832 posts, read 2,056,232 times
Reputation: 10577
Quote:
Originally Posted by MetroWord View Post
It is also fairly common for vets to end up losing their homes. Buying a house is a huge life decision. Too many people are too irresponsible to go in with no money.
FWIW, of all the foreclosed properties I've seen listed, VA owned properties are not common. I certainly wouldn't say they're more common than HUD or Fannie Mae properties.

VA has credit as well as debt-to-income ratios they'll accept, and their appraisal standards are typically much MORE intense than others, so they probably don't loan on a lot of lemon houses.

Of course, for any client of mine who is buying with little or no cash available, I try to make sure they look closely during inspection, for things they can't afford, that will likely cost money soon.

All buyers should do that.
Reply With Quote Quick reply to this message
 
Old 02-11-2018, 09:47 PM
 
Location: Southwest Washington State
18,885 posts, read 12,490,390 times
Reputation: 24354
Quote:
Originally Posted by oregonwoodsmoke View Post
No down through the military option. He qualifies for a VA mortgage. Yes, it is fairly common for veterans to buy through the VA program
This is how we sold our house. I don't recommend selling to someone going through the VA, as you have to jump through more hoops. We had not been able to sell our house however, and we accepted the reasonable offer. The buyer did not put anything down, we were told.

But if you have a choice between a regular loan and a buyer with a VA loan, choose the former. It was a real pain selling our house.
Reply With Quote Quick reply to this message
 
Old 02-12-2018, 06:19 AM
 
Location: SW Florida
9,116 posts, read 3,932,227 times
Reputation: 18792
When I bought mine with a VA loan last August I was told by my mortgage lady that VA loans used to be more time consuming with a lot more requirements but it has gotten much better. I guess it took me about 2-3 months but a lot of the delay was because the house I was buying had a reverse mortgage and those people were totally incompetent.
Reply With Quote Quick reply to this message
 
Old 02-12-2018, 06:41 AM
 
Location: Cary, NC
31,614 posts, read 55,335,524 times
Reputation: 30177
VA loans don't have a terribly high failure rate.
https://www.military.com/money/va-lo...sure-rate.html
What does happen, is that the 100% funding and the attendant amortization schedule can delay building adequate equity for the homeowner to be able to sell. If life circumstances change abruptly and, if they don't have cash to bring to closing, they can be stuck.

The only issues I have bumped into is that the buyer cannot pay for wood-destroying organism inspection, i.e., termite.
$60--$100, depending on your market.
I have paid that bill, when sellers balk. Yes, sellers may balk over $75 in a $350,000 transaction. Go figure.

Many VA buyers are well-paid professionals who like the program for minimal down payment requirements.

VA or other 100% LTV loans, or FHA loans, help a great many people get into ownership when their cash flow is adequate, reserves are low, but they can save money monthly vs. rent.

None of this is meant to encourage the OP's friend's kid to make a mistake, or to avoid ownership.
His call. But, his circumstance sounds like he is getting out on a limb.
Reply With Quote Quick reply to this message
 
Old 02-12-2018, 09:25 AM
 
4,220 posts, read 4,439,151 times
Reputation: 9303
Thanks for the replies, appreciate hearing peoples views and experiences. I like my co-worker, he is a hard worker, nice person and I certainly wish him well. Just wondered how common the circumstances, hence the question here.
Reply With Quote Quick reply to this message
 
Old 02-12-2018, 09:48 AM
 
Location: Salem, OR
13,745 posts, read 31,570,576 times
Reputation: 12105
Quote:
Originally Posted by brava4 View Post
Thanks for the replies, appreciate hearing peoples views and experiences. I like my co-worker, he is a hard worker, nice person and I certainly wish him well. Just wondered how common the circumstances, hence the question here.
Yes, it is common for people to push to get into a house, but I also see that the house will be cheaper for them as rents have escalated in many parts of the country. So it might seem they are making a bad decision, but I have had clients whose home payment was $500 a month less than their rent payment they were making. You can start to save with that kind of difference. If that is the case with your co-worker, then it would end up being a wise financial decision. You just don't have enough information to make a judgment call about whether or not your co-worker is being fiscally responsible.
Reply With Quote Quick reply to this message
 
Old 02-12-2018, 09:48 AM
 
Location: Philaburbia
31,191 posts, read 57,317,340 times
Reputation: 52039
The worst part of this scenario is the assumption that his dad will travel from Kansas to renovate the bathroom.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top