How To Buy A Home With No Money Down In Woodbridge Virginia
There are a variety of home loans you can use when you buy a home in Woodbridge, with different down payment requirements.
The best known no money down home loan is the VA home loan that is available to persons who have served in the Armed Forces. All you need is 180 days of active duty to qualify for veterans benefits, including access to Veterans Administration guaranteed no money down home loans.
The trick to using VA financing is using the rules to buy with no money down, AND pay no closing costs, no loan fees, and no discount points. Moreover, MY buyers walk out of settlement with a check for $1,000 - $5,000 in their hands.
VA financing has the most generous guidelines of all loans with regard to credit history, and job changes. That's especially helpful if you're coming off of active duty and taking a job in the private sector. Other loans require you to have as much as two years on your new job before you can close the loan. VA loans do not require large buffers of cash on hand in your bank account when you close.
So if the transaction is properly structured, you can buy a house with no money down, get someone else to pay your closing costs and loan fees, and walk away from settlement with a check in your hands. A VA loan is the only type of loan that has the rules that allow you to do that.
Moreover, you won't have your first mortgage payment for 45-60 days in most cases. So you can pocket a few paychecks while before your first house payment is due. The VA loan interest rate is so low, house payments are much cheaper than rent in most neighborhoods, by $500-$600 per month. For example, a VA loan for a $300,000 house at 3.5%, with 3.15% APR, has a note payment just of $1,347 per month. Add $350 for tax escrow and $40 for insurance, you get an estimated house payment of $1,737 per month; a house for rent in that same neighborhood would run $2,400 - $2,500 per month.
Plus, you'll have a monthly income tax savings of roughly $400 per month, or about $4,800 per year in a fatter tax return. I am not a CPA, so for competent tax advice I urge you to see the licensed accountant of your choice.
Based on my experience, you could adjust your tax witholdings per month, and take your tax return monthly as a heavier paycheck, instead of letting Uncle Sam hold $400 per month interest-free for the year. Or, you could let the money build and have a $4,800 nest-egg at the end of the year that you could invest in your retirement fund.
For example, pretend for a moment that you invested your tax savings in an average growth mutual fund, returning an average of 7% over 35 years. At the end of 35 years you would have $1,525,000.04.
So if you buy your first house at age 25, and you invest your $400 tax savings per month in a typical mutual fund returning roughly 7%, you would have roughly $1.5Million and four cents when you turn 60 years-old. Want to see some magic?? Keep your investing and compound interest going for just 5 more years to age 65, and you'll have roughly $2,390,312.57. NOW do you see why and how people who own real estate get wealthy? And it all started with buying your first home.
The typical American will buy and sell 5 homes over their lifespan. They buy their first time buyer house. They typically start a family and need more space, so they buy their move-up home; a single family home with 4 bedrooms, 2.5 baths and a 2 car garage. At their peak earning years, when the kids are finishing high school and going to college, folks will often buy their trophy home, their MacMansion with huge rooms and lots of glitz and glamor. As they age they will sell the big house and move down into a house that has a main level master bedroom, in a planned community where all of the yardwork is done by the home owners association. From there they will move to a home in a senior community, with on-site health care assistance.
By the way, you can use your VA loan over and over again. You can use it to buy a house. Then sell that house and buy another house VA no money down. It's not one-and-done. You can use it over and over again. You can even have it tied to two houses. Yep, you can buy two houses VA no money down so long as the combined value doesn't exceed the VA loan limit.
To find out how you can buy a house with a VA loan in Northern Virginia, pay no closing costs, and get cash back at closing, call Erick Blackwelder now at 703-677-1120, or contact Erick at his website.
The typical real estate sales person is kind and friendly, but it's highly likely they won't know how to maximize your VA loan potential. You need a VA loan specialist. Erick Blackwelder specializes in VA loans and he's helped over 1,500 vets buy homes with no money down and no closing costs in Northern Virginia. You can chat with Erick at 703-677-1120, or send him a message at his website.