Waste money on rent or buy sooner

[Peter Wellman]

Hi Everyone,

I have two options for my first house and am struggling on which one would be the better way to begin my investing.

Option 1

Use the VA loan, but I have to wait till July cause the underwriters want to see 6 months of consistent work history. This is because i took 5 months off after the military. My roommate moved out so i am currently paying 1800 a month on an apartment.

Option 2

Use a conventional loan with a co-signer and put 20% down. This would allow me to start building equity right away and not waste money on rent for the next 5 months. 

I don't know if it is worth waiting 5 months and wasting all that money not building equity on an apartment. I also am a little fearful that the prices of houses are going to creep up in the next 5 months.

I apricate any insight everyone can give me. 

[Jon Kelly]

@Peter Wellman On the surface there are so many different variables to consider such as: rent vs. buy, wait 6 months vs. act now, VA loan vs. conventional, buy primary residence vs. buy investment property, etc...

I think you can simplify this decision by removing all of those variables and making your decision based on one thing: can you find a good deal now? 

If you find a good deal NOW then use whatever means necessary to buy it (e.g. conventional with a co-signer). If you can't find a good deal now then wait until you find one. If you're eligible for the VA loan at the time then use the VA loan.

If you use your VA loan in 6 months on a crappy deal, then you still have a crappy deal...