Need Advice on renting your home out...

[Whalebite]

Read my post. Build up equity, refinance, pay off gaurentee (however that is done) and use your equity.

 

[Brett327]

chief (or others)-

i might want to buy a house at each of my duty stations. if you can only use the VA on one at a time, are there any tricks to being able to afford a new down payment every three years or do you just have to save it all up every time?

Down payments are largely an anachronism. These days, everything gets rolled into your mortgage.

Brett

 

[The Chief]

Down payments are largely an anachronism. ... Brett

Yes, for example, Navy Federal has a mortgage called "Veterans Advantage". No downpayment, cheaper that a VA loan. There are many others out there and rates vary.

 

[Whalebite]

Chief,
I have no $ for downpayment closing etc, someone said 'roll it into the mortgage' all i will have is the measely DLA, but I am very interested in a house while I am in the area and rent it out when i leave. Is this possible in your experence, and how much is the ball park typical closing cost on a typical loan on a 200k house?

 

[The Chief]

Closing costs depend on the area of purchase, varies by local taxes and etc. Closing costs are detailed on the HUD 1, your lender must give you a good faith estimate before closing. Your local Navy Federal could also give you a ball park figure. Not pushing Navy Federal.

You local relator can give you a ball park figure for your area. Just pick one from yellow pages, call and ask.

Yes, it is possible to buy, then rent when you PCS. Tax advantages as well as other intangibles make it a good idea. HOWEVER. Do your homework, as you obviously have started. Do not dig yourself a financial hole. For example, with no downpayment, you may have a negative cash flow, ((rental income - PITI - Property Management Fees - maintenance - unexpected repairs such as new roof)).

If you have more specific questions, PM me.

 

[The Chief]

typical closing cost on a typical loan on a 200k house/QUOTE]

I just looked at some old HUD -1's, here is representative items due at closing. These are actual entries (or annotated) and not all had same entries, they varied greatly.

Down payment (If applicable)
Loan Origination fee
Points
Cost of Funds (sic) Fee for VA
Appraisal fee
Credit report
Flood letter
Private Mortgage Insurance (PMI) premium
Home Owners Insurance premium
Mortgage Insurance escrow
Home Owners Insurance escrow
Property taxes escrow
Recording fees
Mortgage Title policy
Owner’s Title policy
Mortgage interest adjustment
Survey (property survey)
Termite inspection and building inspection fee
Tax servicing fee
Lender inspection fee
Notary fees
Courier Fee
Attorney Fee (buyer pays, attorney represents the transaction)
Loan Application Fee (sometimes different from Origination Fee)