Short answer: BUY! Your home is the biggest asset you will posess. Also, you qualify for the VA loan, which is wonderful.
A VA Loan is one of the only loan programs that still allows the borrower to finance 100% of the home's value and purchase with $0 down. Now more than ever banks are requiring large down payments for conventional loans. In many cases they require 10-20% down, putting home ownership out of reach for many prospective buyers.
Military families using a VA Loan offers two benefits that will substantially lower your monthly payment. PMI, or private mortgage insurance, is not required on a VA loan. PMI is an added monthly expense required for conventional loans where the borrower finances more than 80% of the home's value.
Interest rates are also lower with a VA Loan, typically 0.5%-1.0% lower than a conventional loan.
The qualification guidelines are less stringent for VA Loans. Because the loan is backed by the government, banks have relaxed the often strict lending rules for VA Loan applicants making them easier to obtain.
The Department of Veteran Affairs requires those who offer VA Loans go through a stringent approval process. We are proud to be a VA approved lender.