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First time home buyer...or am I?

Hello, my name is Greg. I'm 32, and I have $15,000 saved in my bank, separate from $3000 in checking. I work at a factory making $300/ week, so $1200 monthly income. I have a 2001 GMC Jimmy for collateral, valued at $4000. I'm a veteran, so I have a VA loan available to me, and an FHA loan, since it would be my first house. I was looking at rental properties recently, and I noticed several mortgage payments would be at or below rent. I was wondering what price range house could I afford to buy? I am aware that owning a home would also require utilities, property tax, and any hoa fees, but I'd rather own than rent, if I can afford it. As a secondary question, I was wondering what advice you could offer. The main reason I prefer owning my home over renting is because I have a criminal record, and I don't want to be in a position where a landlord can evict me. Any advice would be greatly appreciated. Thank you.
  • January 01 2014 - Westside
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Answers (6)

Best Answer

If you have the options of a VA (meaning you have or had some type of militarty employment and are either still employed or were honorably discharged) or FHA loan, then you would be better off with a VA loan as there is no monthly mortgage insurance, and you can put 0 down if you wish. You will need a credit score of 580 or higher in order to qualify.
  • January 01 2014
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According to HUD, a first-time homebuyer is defined as someone who has never owned a home before. An individual who has not owned a home for at least three years is also considered a first-time homebuyer. For couples, if one spouse is a homeowner but the other spouse has never owned before, then, according to the FHA, both spouses are considered first-time homebuyers. So you should qualify as a first-time homebuyer. When it comes to VA or FHA, VA should be the clear winner. This loan offers great benefits exclusive to veterans. These benefits include great rates and 0 down payment. Also, FHA has mortgage insurance that you would be better off avoiding.  Either way, the best thing for you to do is to speak with a lender directly to see if you can get started on financing with your situation or advice on what to do next. There are lenders like myself that would be glad to speak with you to help you get the loan that you need. Well I hope this helps! If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!
  • January 02 2014
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you were very gracious in your approach
  • January 01 2014
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Profile picture for wetdawgs
"VA loan combined with an FHA loan"    This would be one or the other situation.   You can't combine the two.     With a VA loan, you can purchase with 0% down.
  • January 01 2014
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Profile picture for gpearson578425
I'm not sure what to do just yet. I would rather buy a house than rent a house, but with my income, I'm not sure if I make enough by myself to afford a mortgage AND the additional costs that come with owning a home. I was wondering if the VA loan combined with an FHA loan and my savings would make home ownership more feasible. Which would you recommend, in my situation?
  • January 01 2014
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Your post is confusing. If you intend to occupy the property and have VA eligibility then that would be the best program for you. If you plan to buy a rental property as an investment then neither VA or FHA would allow this as they are only for primary residence. The 1200 monthly income will limit what you qualify for so to start you want to make sure you have enough income to qualify for your target purchase price range.
  • January 01 2014
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