Buying vs. Renting: Which is More Expensive Upfront?
Having little to no money in the bank can be one of the main deterrents to homeownership. In this case, the logical option would be to rent since it would be less cost upfront, right? Well, if you are eligible for a VA Loan, this may not be necessarily true. Let’s do the math!
Meet Cindy, Joe & Mark
Cindy & Joe are both looking to buy a $500,000 property. Joe is eligible to finance the purchase through a VA Loan. Cindy on the other hand is not VA eligible, and will purchase via a conventional mortgage.
Now Mark is eligible for a VA Loan but feels like he can’t afford the upfront costs of buying a home right now, so he’s looking to rent. He’s looking to rent a home for about $2500, which is comparable to the $500,000 property that Cindy & Joe want to purchase (see rentometer.com).
Top 4 Ways To Use a Seller Credit
Right about now, you’re probably getting tired of reading headlines about how bad the real estate market is and that the financial world is on its way to a meltdown. Me too, but there’s another side to all of this, and one that you, on main street, can turn to your advantage. Guess who else is aware of this phenomenon. That’s right, every seller of a home currently listed for sale. Credit is tightening for other loan programs and, in many pockets, prices are lower than they have been in years.
As a VA eligible homebuyer, you can purchase one of these homes at a value not seen in years…and with potentially very little out of pocket expense. How so? Not only can you negotiate on price when buying a house, there’s another tool that can make getting into a home much easier, seller credit. A seller credit is an additional sum of money paid by the seller for you to use to pay the closing costs on your loan. Make sure to discuss this with your real estate agent.
Who’s Eligible for a VA Loan?
The first step in obtaining a VA Loan is to determine whether or not you are eligible. This determination is made based upon the type of service (active duty or reserve) and the time frame.
If you enlisted or entered service before September 7th, 1980 you may be eligible for the VA Home Loan program if you serced at least 90 days in wartime or 181 days in peacetime. If you enlisted after Setpember 7th 1980 or entered service as an officer after October 16th 1981, you would have needed to serve at least 24 consecutive months (or the full period called to active duty not less than 90 days in peacetime or 181 days in wartime) to qualify for VA Loan benefits.
VA Homebuyer Seminar
When we started HawaiiVALoans.com - our vision was to make it as easy as possible for those who may be eligible for a VA Loan to learn the basics of the VA Loan program; who’s eligible, the benefits of a VA Loan & how the home buying process works.
Step one was to create our site, HawaiiVALoans.com & the VA Loan Blog that has a wealth of information, tips and tools. Step two was to create our 21-page eBook - “VA Homebuyers’ Guide - Understanding Your VA Loan Benefits & the Home Buying Process” and so far, we’ve received great feedback on how informative this guide has been. Finally, we are at step three. In an effort to continually provide more FREE information to those who would like to learn more about the VA Guaranteed Home Loan program, we will be doing a free VA Homebuyer Seminar, which we plan on holding every month.
VA Loan Benefit: Reduced Closing Costs
When Congress officially passed the Servicemen’s Readjustment Act of 1944, one of the key elements in this bill was the creation of the VA Guaranteed Home Loan program. With this program, President Roosevelt & Congress wanted to make it as easy as possible for our soldiers returning home from World War II to become homeowners.
One of the biggest obstacles of homeownership for everyone is out-of-pocket expense, which includes down payment and closing costs. We’ve already discussed that you don’t need a down payment with a VA Loan since you can do 100% financing. In addition, the VA Department restricts the amount of closing costs that a VA borrower can pay - essentially breaking up the closing costs into two categories; Allowable Closing Costs & Non-Allowable Closing Costs.
Introducing Our VA Homebuyers’ Guide
According to the VA Department, there are roughly 25 million Veterans living in the US today - and yet only 2.1 million VA Loans are currently being insured by the VA Department. It’s obvious that most VA eligible borrowers are not taking advantage of the unique benefits allowed to them through the VA Home Loan program. Why? Probably due to the lack of information explaining the true benefits of a VA Loan as well as being intimidated by the home buying process.
From day one, our goal with HawaiiVALoans.com was to provide our current military personnel as well as Veterans with as much information regarding their VA Home Loan benefits as possible. And to continue our vision, I’m proud to announce that we have just released our 21-page eBook:
VA Homebuyers’ Guide
Understanding Your VA Loan Benefits & The Home Buying Process
This 21-page ebook will cover everything from:
- VA Eligibility Requirements
- Your Entitlement
- How to Get Your Certificate of Eligibility
- Benefits of Homeownership
- VA Loan Benefits
- Occupancy Requirements
- The VA Funding Fee
- VA Closing Costs
- Condo Eligibility
- The VA Home Buying Process
- And Much More…
We feel that this 21-page eBook is a must have (we’re bias of course) for anyone who is interested in buying a home (either now or in the future) and is (or think they are) eligible for a VA Loan. Download your copy today and we’d love to hear any feedback you have!
Learn More By Visiting..
I Would Like To...
Categories
- 100% Financing (3)
- Closing Costs (6)
- Condo Eligibility Check (2)
- Free Stuff (1)
- Housing Allowance (2)
- Interest Rates (1)
- IRRRL (1)
- Mortgage Insurance (1)
- Points (4)
- Random (1)
- Stimulus Package (2)
- Streamline Refinance (2)
- Testimonials (3)
- Tips (14)
- Tools & Features (3)
- VA Approved Condos (2)
- VA Eligibility (3)
- VA Funding Fee (2)
- VA Loan Benefits (5)
- VA Loan Limits (5)
- VA Purchase (11)
- What Can Your Housing Allowance Buy? (2)
Hawaii VA Loans.com is not affiliated with any government agencies. Hawaii VA Loans.com is an informational website provided by VA Approved Lender, HomeLoan Financial - a division of Land/Home Financial Services, Inc. All Content Copyright © 2007-present Hawaii Va Loans.com. All Rights Reserved.