mortgage

[FoBoT]

lets say i qualify for $130,000 mortgage

would it make more sense to buy

1- $130,000 house , put $0 down payment (VA loan), mortgage = $130,000 , equity = 0

or

2- $150,000 house, put $20,000 down payment (still VA loan, don't have enough $ to do 20% down required for conventional loan), mortgage = $130,000 , equity = 13%

 

[RBlount]

If you can afford it, try and put down 20% no mattter what to avoid PMI. How about the $150,000 with $20,000 and a 2nd Mortgage for $10,000. You will save the PMI and the 2nd's interest is tax deductable.

-Rob

 

[FoBoT]

VA loans have no PMI , so i don't have to worry about that

 

[tm37]

Or you could buy a 130K house and put down the 20% and have a lower payment.

I was qualified for a 170K and I have no idea how they planed to have me pay that bill every month.

I would have a nice house and I might lose wieght do to hunger:Q

Where are you looking to live?

a quick search of your hometown listed in your profile showed alot of houses in the 125 range.

You don't want to be house poor.

 

[bunker]

You shouldn't buy as much house as you "qualify" for. Everyone I've seen do that struggles to make ends meet.

We qualified for $165 and bout a $138 house and are doing well.

I'd try and stay under the max you qualify for.

 

[Ameesh]

Originally posted by: FoBoT
VA loans have no PMI , so i don't have to worry about that

whats the difference between the two houses besides the price?

 

[Shockwave]

WHat does one have the other doesnt? Do you need the extra?
Dont buy a house based on price. Buy a house based on do you like it and does it have the room / features you want / need.
If the 130,000 house is nice, you like it, it has what you want then get it by all means!

 

[FoBoT]

Originally posted by: tm37

You don't want to be house poor.

nope, we don't

we did that with our first house in New York

we are thinking of going rural/out in the country, more house/more land for that same price

 

[KK]

Originally posted by: FoBoT
lets say i qualify for $130,000 mortgage

would it make more sense to buy

1- $130,000 house , put $0 down payment (VA loan), mortgage = $130,000 , equity = 0

or

2- $150,000 house, put $20,000 down payment (still VA loan, don't have enough $ to do 20% down required for conventional loan), mortgage = $130,000 , equity = 13%

If the housing market in the area is steadily rising, and has good prospects, you don't need equity. Since you are VA it makes no sense to put anything down unless you like the 150,000 house better. That's what it all boils down to, which house do you like better.

KK

 

[tw1164]

Originally posted by: bunker
You shouldn't buy as much house as you "qualify" for. Everyone I've seen do that struggles to make ends meet.

We qualified for $165 and bout a $138 house and are doing well.

I'd try and stay under the max you qualify for.

Its suggested that you get a mortgage that costs less then 29% of your gross income.

 

[FoBoT]

Originally posted by: tw1164

Originally posted by: bunker
You shouldn't buy as much house as you "qualify" for. Everyone I've seen do that struggles to make ends meet.

We qualified for $165 and bout a $138 house and are doing well.

I'd try and stay under the max you qualify for.

Its suggested that you get a mortgage that costs less then 29% of your gross income.

i don't want my monthly house payment including taxes and insurance to be more than 20% of my gross income, so i should be ok, thanks