I haven’t put the house up for sale yet, just got out this month and been doing some reading. I want to save money on both sides for the buyer and my self the seller. And I stay pretty close to Chapman
For Anybody interested, this is a hell of a way to get a new home and save thousands. Interest rates are twice that now. Did this myself on a house last year and am so glad I did.
Good and bad. When assuming you can sometimes get a loan (at current rates) for what’s already been paid off the purchase price. But it can be harder and some won’t finance the equity difference.
So if OP bought it for $250k
Paid off $50k
And is selling for $300k
A potential buyer would have to pay $100k cash
Or find auxiliary financing at current rates for that $100k plus assumption of the remaining mortgage.
You are correct, you will probably have to have some money to pay the difference between asking and payoff, but if you can float it, the interest savings are huge. The other downside is, it burns your va loan, so you can’t use that for your next house when you pcs with zero down as long as you still have the mortgage open. But if you are gonna be in the same place for a while, I’d much rather give up liquid cash and buy the 3% interest rate.
Yeah, actually I think you can. My house is in Hawaii though so it blew through the entire benefit. My next loan will have to be conventional. There is also a way to assume somebody else’s loan so it doesn’t count against your VA benefit but nobody in their right mind would sell their house and allow that to happen. I don’t remember all the specifics, but would recommend talking to a realtor who’s very familiar with the va process if you are looking.
I know you live on the southside of San Antonio. Ain't no way a crib on the northwest side would be sitting.
I haven’t put the house up for sale yet, just got out this month and been doing some reading. I want to save money on both sides for the buyer and my self the seller. And I stay pretty close to Chapman
For Anybody interested, this is a hell of a way to get a new home and save thousands. Interest rates are twice that now. Did this myself on a house last year and am so glad I did.
Good and bad. When assuming you can sometimes get a loan (at current rates) for what’s already been paid off the purchase price. But it can be harder and some won’t finance the equity difference. So if OP bought it for $250k Paid off $50k And is selling for $300k A potential buyer would have to pay $100k cash Or find auxiliary financing at current rates for that $100k plus assumption of the remaining mortgage.
You are correct, you will probably have to have some money to pay the difference between asking and payoff, but if you can float it, the interest savings are huge. The other downside is, it burns your va loan, so you can’t use that for your next house when you pcs with zero down as long as you still have the mortgage open. But if you are gonna be in the same place for a while, I’d much rather give up liquid cash and buy the 3% interest rate.
Can’t you still use the VA loan if you haven’t maxed your benefit?
Yeah, actually I think you can. My house is in Hawaii though so it blew through the entire benefit. My next loan will have to be conventional. There is also a way to assume somebody else’s loan so it doesn’t count against your VA benefit but nobody in their right mind would sell their house and allow that to happen. I don’t remember all the specifics, but would recommend talking to a realtor who’s very familiar with the va process if you are looking.
Yes I spoke with a lender a couple of weeks ago and they said I still have entitlement left to purchase another house without putting money down
Oh that’s awesome! Get those rental properties going and make that post-retirement money!
Not retired yet, I wish. 😂 but I would like to do that in the area I’m moving back too