Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
Go with the loan that has the best interest rate and overall terms, including fees.
Putting cash down is the same as earning whatever rate, less the tax deduction, you will pay. By hanging on to the funds, you have options to pursue other investments which may have larger returns.
The main advantage you may have in using some of your cash would be to purchase a more expensive home than you might qualify for with a down payment. If you plan to be in the area medium to long term, this may be a good consideration.
Speak to a full service mortgage broker who can go over your options and discuss the pros and cons of your situation and help you decide.
I am a retired Army officer and have used the VA loan in the past and helped many clients with the use of the loan. It is a great advantage to use the loan now. It is one of a very few programs that allow you to purchase a home with no money down.
On your question as to whether you can put money down the answer is yes. I do not recommend you put money down if you do not have to. Interest ratesd are at historic lows that have nto been seen since the great depression era. I advise my clients to put as little down as they have to.
However; I do not know the circumstances surrounding your home search. If the home you want to purchase is more than the VA will qualify the two of you for then you can put money down to meet the guidleine requirements.
If you are going to put money down then see what percentage you are going to put down. Once you hit the 10% or greater down it may nto be advantageous to do a VA loan. the VA charges a premium that is rolled into the loan amount. (basically it is there insurance premium). On most loans you are required to pay it until your down payment exceeds a certain percentage.
So, if your down payment is goign to be 10% or greater have themortgage professioanl do a comparison for you on the monthly payment and the cost over the time you expect to be lving there.