Home Buying in Orange County>Question Details

John, Renter in 11418

Does anybody have experience dealing with VA Loans?

Asked by John, 11418 Tue Jan 1, 2013

I plan on buying a home in Orange County, NY this year (2013) and I am a Veteran (USMC Semper). I would only like to put 10% down. If VA Loans have rates that are on par to a Conventional Mortage I would like to go the VA route since there is no PMI.

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That's a great point John and definitely the reason I would put 10% down instead of 20%. The thing is, property taxes on homes in Orange County, NY are $6,000-$10,000 a year. So to keep my PITI payments more manageable that extra $100+- per month makes a difference. I appreciate your input. Definitely something to think about if I find a home on the lower end of my price range. (Which happens to be about $250k-$300k so your example was right on).
1 vote Thank Flag Link Wed Jan 2, 2013
Hi John,

Thank you for your service.

You will get a better rate and a lower payment going with a VA mortgage compared to a conventional mortgage.

I would also consider keeping your money in your pocket instead of doing a down payment and here's why.

Let's say you're looking at a purchase price of $250,000. 10% down would be $25,000.00. Now let's look at your break even point by taking the difference in the monthly payment with 10% VS no money down and dividing the down payment by the difference in the monthly payment.

The principle and interest payment on a $250,000 VA loan at 3.25% is $1,111.14 and $1,000.27 for a VA loan of $225,000.00 so that's a difference of $111.14 per month.

Now divide the down payment of $25,000 by $111.14 and you get a break even point of 224.94 months or 18.74 years. This means you're paying $25,000 now to save $111.14 per month for the next 18+ years. Another way to look at it is you can borrower $25,000 for $111.14 per month.

Once you sink money into you home it will be difficult to get it out if you need to so instead of putting money down find some other investment vehicle that will allow you access to your money while it's still working for you.

I have a lot of experience closing and funding VA loans. Take a look at my recommendations here on Trulia from some of my past VA clients.


Please feel free to contact me for more information or help. You can also find info on my VA Mortgage website by clicking the link below.

John Burke
Senior Mortgage Banker
Peoples Bank & Trust
1 vote Thank Flag Link Wed Jan 2, 2013
Hi John,
Getting a VA loan is a smart idea for anyone who is eligible. Have you talked to a lender who does VA loans yet. I've lived in the area for over 40 years so if you have any questions please feel free to ask.
Thank you,
William SMith
Keller Williams Realty
0 votes Thank Flag Link Fri Jan 4, 2013
The VA loan will give you a lower rate plus no PMI. The rates on government loans (VA, FHA & USDA) have been lower than conventional rates or several years. Let's talk on Wednesday.

Tom Gildea
0 votes Thank Flag Link Tue Jan 1, 2013
Thanks, but I was wondering how much sense it would make rate-wise. I was a loan officer too for about 4 years, but never did a VA Loan deal. From what I read online the rates are supposed to be competitive with a Conventional Mortgage. My mid FICO score is 700. Would getting 90% financing through a VA Loan with my credit score be worth a slightly higher rate and NOT paying PMI or going conventional and paying PMI??
0 votes Thank Flag Link Tue Jan 1, 2013
Well John, you sound like you're like you're on the track. That fellow, Tom Gildea who answered first is a good man to call for mortgage assistance.
If you need a REALTOR to help you in your home search and you're not already working with someone, call me on my cell:914-805-9053, I'd be happy to help.I've been in Orange County for 35 years,originally from Brooklyn & Queens, and I've worked with a lot of military and gov't. personnel.
Thank you for your service,Good Luck and happy New Year.
Bob Rullo
0 votes Thank Flag Link Tue Jan 1, 2013
Hi John,

I have been originating VA loans for over 10 years. I can help you. I can talk late this afternoon or this evening if you would like. I live in Orange County.

Tom Gildea
Hudson United Mortgage
0 votes Thank Flag Link Tue Jan 1, 2013
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