Jeannette Karis, ABR,CRS,GRI,SRES

Hello Samantha - first off, thank you for your service. Such a good question as many good ideas can have a downside. As a military wife my husband and I used VA to purchase our first home and it turned out to be a good idea but it is not for every VA buyer. If you want to go the route of the least money out of pocket then VA can work well. I you are planning to stay in the home for at least 3-4 years then you most likely will be able to recoup the full amount of the loan plus the sellers closing costs - but only if you buy smart. This means buying a home that is going to appeal to the average local Spokane buyer which will sell in a reasonable amount of time even in a slower market and getting that home at a great price.

To achieve the least money out of pocket will also require the seller to pay some if not all of your closing costs. In different markets a few years ago, the closing costs could be added to the purchase price with little concern. However in the current market appraisers are being more conservative and some homes are not apprasing at the contract price which then presents a big problem .

However if you have some cash but would prefer not to use it unless you have to you are in a better position as you have more options.

VA and FHA loans tend to have a slightly higher interest rate than conventional so if the smallest monthly payment is most important to you conventional may turn out to be better.

All in all you will do best if you select a REALTOR who is very experienced with VA loans and the conditions the appraisers are concerned about so that problems can be headed off in advance and also so that impossible deals are not started. Also the other most important thing is that when talking to loan officers you select one that is doing a lot of VA loans so that they can best advise you whether VA is best for you based on your financial situation and not their own preference. A good experienced loan officer can also combine VA with First time homebuyer programs if that is advantageous for you and only a small number of loan companies can do the WA State bond money for instance. I just had a VA buyer be ecstatic when his lender was able to do just this and save him a lot of money.

So as in a lot of situations - are there any drawbacks - it depends on what you need to achieve, little out of pocket or small monthly payment and how long you expect to be in the home. - Thu Jul 24 2008, 23:06

One last thought - if an agent is quick to give up part of the fee that they might usually charge you might wish to consider how toughly they will be negotiating on your behalf when you receive offers. When you are considering price don't forget experience, education and results are the best way to evaluate your agents. A personal referral from a very satisfied customer or a referral from another agent who can can see inside the industry can also offer great results. - Fri Apr 18 2008, 18:44

Hello Tobias
The answer will vary according to price range and of course the credit history of the individual client. My relocating clients are generally using the conventional loan products - however those who are not able to put 20-30% down and have credit scores around 700, may find that the PMI requirements will affect the interest rates they are offered right now. VA has been utilised less often by repeat buyers as the increased VA funding fee has been a turn off. FHA limits have been increased so more buyers will be able to consider this option. I always advise clients to consider an experienced loan officer in the area they are purchasing as the best source for detailed, correct loan info plus excellent customer service. Especially right now with lending criteria changing. Clients who are most frustrated with their lenders are not able to see them face to face as they have "found" them on the internet. Not that you cannot have a good internet lender, just get that company from a friend or REALTOR via a referral. - Wed Apr 2 2008, 14:35

Hello Tyler

I can understand your caution re buying/renting with a proposed move to this area. Real estate is a very local market and what is happening in Seattle is not necessarily what is happening in Spokane. As Chris so rightly said we cannot see into the future but can look at the history. In the Spokane area, real estate has cycled on a 10-12 year period for high spikes in increase in property values. We are now entering a new cycle of slower growth. Having said that we are still seeing an increase year to date 2008 compared to 2007 for both average and median prices. We are seeing increasing numbers of properties on the market which offers buyers greater choice than in recent years. Our rental market of single family homes is not large and is described to me by relocating military families as disappointing. First there is not a central location for rental information and many people have to decide if they must have a certain area (for example a particular school is driving the purchase) then see what is available or look for the best home matches and see where they are. In WA state the closing costs for a seller run around 3% due in part to the state excise tax, plus a realty fee. This means a seller needs to get that amount of appreciation to break even. Buying at this point in time gives a buyer with an agressive buyers agent the opoortunity to get a good if not a great deal which will help when you sell. This strategy will mean putting the value any given home can be purchashed at over buying the "dream house". The more choices of homes there are that will be acceptable to you the tougher you can negotiate and the more vulnerable the sellers are. Having your loan in place with a local lender (so that the listing agent can reassure the seller) will also help put the balance in the buyers favor.

As far as best neighborhoods, as licensed agents we are not allowed to describe neighborhoods as good or bad as this is considered "steering" telling people where to live. So if you have school age children, you might want to investigate school reports (my website has a direct link for WA state report cards http://www.spokanehomes4u.com) or maybe you have a preferred commute distance from where you will be working or perhaps you have a preferred syle or age of home. In Spokane 85% of our homes have basements which may or may not be finished with living space. Also our home inventory includes properties built from the 1890's to the present. Your preferences may determine the areas you consider for a home. Typically when working with relocating clients I take them on tours of different areas so they can appreciate the many wonderful features of living in Spokane. With the absence of grid lock and the recreational opportunities all around us in the lakes and mountains allow us to enjoy a fabulous quality of life. No wonder we have no problem living up to our byline Near Nature, Near Perfect. From our parks and The Centennila trail, to the shopping , opera, jazz and symphony orchestras, the travelling Broadway shows, we enjoy a bit of everything at a little less hectic pace. You might also want to check out http://www.visitspokane.com - Mon Mar 31 2008, 12:27