Trying to get advice more targeted to my situation. I'm planning on buying a home in three years when my overseas assigment is done. This will be my second home purchase (first one was back in 09 and has been sold) and I'm planning on using the VA/MoversAdvantage programs.
Knowing these conditions, is there any advice you can give me about the home buying process? What kind of percentages should we be looking at for a down payment, etc? Really anything you can post will help, especially about using the VA program a second time.
Thanks you in advance.
I asked an expert here at USAA and here is what he had to say:
"It’s important to know what the VA funding fee will be for subsequent use when purchasing a new home. Unless you’re exempt due to a service related disability, the funding fee for subsequent use is 3.30% of the loan amount with no down payment, 1.50% for 5% or more (up to 10%) down and 1.25% if you put 10% or more down. If you can manage a 20% down payment, a conventional loan product may make more sense because you could avoid the funding fee as well as mortgage insurance. The APR (Annual Percentage Rate) is an easy way to compare different loans at the same interest rate because the APR factors in the fees associated with the rate such as points and the funding fee. Also, if you’re separating from the military be sure to talk to your lender about your new employment before making an offer on a home. Contract work or employment unrelated to your role in the military can be an obstacle for loan approval. It’s always advantageous to work with a financial planner who can solidify your game plan and help ensure you’re financially ready. "
I hope this helps and I wish you the best of luck finishing the remainder of your overseas assignment! Thank you for your service!