All Forum Posts by: Chelsea Ricketson

@Michael S. Biggest issue with the owner-occupied aspect of the VA loan is that I intend to live in this condo for at least 6 months, but there's a good chance that I may get stationed elsewhere in several months. Thinking longer term, whether or not I do get stationed overseas next, I'd like to get the RE investment vehicle moving forward one way or another. That might mean me living in the condo myself, or renting it out to others while I'm gone, but either way, I'm already set on buying a place here in San Diego to start investing. I'm looking for flexibility to convert the condo into a rental in the event that I'd rather live elsewhere, and I'm getting the impression that a conventional loan would offer more leniency there.

Your (amusing) analogy with the coupons helps me to solidify the two options I'm really considering: 20% down with a conventional loan or 10% down with a VA loan (to lower funding fee). Considering a comfortable monthly payment (while maximizing the value of the property I can afford) is my main determination in the home-buying process, you may have helped me settle on 20% down with a conventional.

@Mathew Wray is echoing a lot of my own thoughts. Talking to my realtor, there's that shared thought to put 20% down on a conventional loan in a situation where I can, and use the VA loan for another property that I have a bigger stake in (ie. I see myself living in it for some time to come).

@Kenneth Hynes With this condo I'm looking at now, I do plan to live in it for some time, but definitely not for the long run. I plan on putting in an estimated $15-20k to do some needed, however superficial, cosmetic improvements to the place that in turn will hopefully add to its value when I choose to resell it. If I do choose to leave San Diego in several months from now, I'll choose to go overseas, so buying a new home there won't be feasible for me.

I'm currently active duty, and I am a first-time home buyer with excellent credit and no debt. I have a number of options regarding putting a percentage of the payment down, and I can easily afford to cover closing costs and whatever points may be included. With the variety of options I have, I am tentatively set on putting 20% down on a 350k condo and will cover all closing costs and miscellaneous fees/points, as well, namely to have a comfortable monthly payment. Additionally, I do not have the option of paying in all cash, so of the variety of options I do have, that is not one of them.

The biggest lure with the VA loan is the no down payment option. With that being a moot point in my situation, where I have already decided to put 20% down, is there an advantage to using a conventional loan over a VA loan? And if I come across a property I want to put an offer on, and VA isn't an option, should I forgo buying the property or consider using a conventional loan still? In that situation, is it possible to convince the seller to accept a VA loan? And if not, would using a conventional loan still be a "success" for me as the buyer?

Thanks for any and all input!