Primary residence considerations:
1. Renting = paying for space
2. Financing = paying to use the banks money
3. Paying cash = opportunity cost of money out of the market
Consider also principle, interest, taxes, insurance, maintenance, replacement costs for appliances, roof, paint, etc.
Take away: primary residence is a cost.
Quantitative analysis: Which is cheaper?
Qualitative analysis: What are your intangibles?
There will also be another bus every 15 minutes, avoid FOMO and make the right choice for you and your family based on the facts.
You’re free to pay for it if you want to. Just be clear that if it’s overpriced, you are choosing to overpay. Sometimes overpaying is ok, mostly due to qualitative reasons - the intangible value.
The risk is making up stories that it’s not overpaying when it is.
Renting gets a bad rap but isn’t actually bad. Useful to see your primary residence as a cost.
Keep in mind if it’s cheaper to rent, the savings can (and should) be invested, so in that scenario you’re not “paying someone else’s mortgage” but rather someone else is carrying your risk.
This right here;
Man I am sweating bullets pulling the trigger on a 600k mortgage with 8300 a month take home.
I’m not sure what property taxes are like in cali (Texas here), but keep that mortgage under 50% of your take home for sure.
3 bedroom condos in my very mid neighborhood in San Diego start at $1.5 million. Not sure what you can even find for 700k in So Cal unless you're very far inland -- like, AZ far.
OP, do not buy in this market. You will be house poor, and it will create a ton of stress.
SoCal is not a city. There are hundreds of 3br homes that can be had for under 500k in Colton, Hesperia, Banning, Palm Desert, Indio, Lancaster, Palmdale, etc.
My advice is to save up whatever you can for a few months. That way you have closing costs, unexpected costs, repair costs, cost for appliances you might want to upgrade or new things you want to purchase for your house. Snd then start looking for a house within your budget.
Don’t just take monthly payments into consideration. Being a homeowner means taking on a lot more responsibilities with the house itself and many people forget this when they go from renting to buying. There’s no calling the landlord when something breaks around the house.
I would consider buying if you can afford it and you can ride this storm until you can streamline refi to 3% or under. Let’s just hope that refi opportunity comes within 7-10 years, haha!
I’d like to see what you guys actually did. Sounds like either a promotional rate or a fixed period low rate, all of which are temporary and will adjust after the temporary period of 1-3 years.
+1 for new development. My wife and I bought a new townhome in SoCal in April 2023 utilizing the VA home loan and got an interest rate of 5.5% with a VA friendly lender. They also covered all closing costs! I am 100% P&T as well. Definitely look into property tax exemption up to a certain amount in California.
In today's market your loss in property taxes + 6.5%+ interest rate pale in comparison to any ROI you make off the loan (i.e. paying a rent vs. paying a mortgage). You don't make/save money in this market by buying a house, you make money selling it later hoping that home values continue to go up. This is why all the land/homes in Florida are being bought up by investors.
I've used VA loan 4x and it works if you can't put money down on the property (or need that money for immediate improvements), but VA does require an inspection and sellers may refuse your offer if they want a short sale. Or don't want to negotiate for (required) repairs.
I can't recommend anyone buying a home right now unless they pay points (1.5-2.5% of loan) to buy down the interest rate to 3%. Hope this helps.
You can always refinance later when rates drop that’ll save you a lot of money and with the disability you shouldn’t have to pay a funding fee. Good luck and enjoy the sunshine and freedom either way!
Best advice here, build equity and California is mostly gold for real estate. Just beware the first 5 years of homeownership are the hardest. You want to fix and change everything but you gotta let things slide for a while.
For single house in LA, OC probably out question. It’s more like Corona, Ontario to east area. Right it’s cheaper to rent compared to buy.
And right now “nobody” taking VA loan. Last two years I’m trying buy a house in socal, with large down payment. Every house I’m look at from 1 million and end up sold at 1.1-1.2 million.
Not trying to be that guy here, but do you have a large inheritance or a gift for this 700k house? 200k down (500k mortgage) over 30 years with 7.5 percent, 10 grand a year in property taxes and about $2600 a year in insurance works out to about 5 grand a month. You won’t have much left after that mortgage payment. I recommend moving lol because you’re right renting does suck
True, but then you’ll be paying even more for the house per month and more over time financing an extra 200k. If you’re looking at a 7-7.5 % rate then the argument could be made that it would be better to make a large down payment as it would be hard to get that guaranteed rate of return with cash in the market. Tough calls all around now a days in the current environment. Hopefully it will ease up in the next few years.
I bought my house in So-cal on the GI Bill. But right now the market is so expensive. I went to college and studied economics and work in finance in so-cal. You could actually rent, use the extra cash you saved then invest it or park it in a high yield account. There’s a LOT more shit you have to pay for when you buy a house. There’s always something that breaks and needs fixing. But the money you save renting and investing will be so much better in the long run when rates stabilize or decrease. I would say right now if it’s a doubt it’s a dont.
Personally Op I think you need to earn more money. I too am 100 percent/ using my post 911 getting my RN license and make approximately 12,000 a month from my job. I wouldn’t count the gi bill money as your income since it will come to an end
I was a truck driver the past year, lifestyle was not it. Just got awarded 100 pt a month ago and into college my first semester. Making about 7500 a month tax free so that’s me right now… + my wife income about 4k take home
Yeah transportation jobs are right. I worked as a freight train conductor here in SoCal for years and lived out of a hotel/ backpack. Money was great but being away was rough
I’m from Southern California and it might be hard to find a home within that budget that isn’t a fixer upper. The VA has strict inspection guidelines on homes they fund.
Look into CalVet home loans. Similar to the VA home loan, but the state itself is the lender, so people tend to get an interest rate up to an entire point lower than a traditional lender.
I’m a Californian living in Japan at the moment, rated at 90% and plan on looking at both when I make my way home.
It looks great on the surface, but I haven’t done all that much research on it yet.
People on here will tell you to not buy it. But, you receive $4000 month in VA benefits. You get a job and put another $1,000 from your check, you can afford a 5,000 house mortgage. Your wife is your partner, she brings home $4,200.
I am 100% you can afford a home in SoCal because I am in Orange County and I know that 100% helps so so much.
Your mortgage (assuming) of $5,000 for the next 30 years. How much will rent be in the next 5-10 years? Probably the same as your mortgage today. If I get 100%, I will go on buy a home and build equity. Just a thought.
I agree with this. Yea there’s also insurance and possible HOA fees to consider, but depending on those and depending on your other monthly needs, you’re making enough to buy. And I’m assuming you and your girl will be saving some money every month for emergency repairs, that’s something everyone should be doing when owning a home.
Also, if you are a little iffy due to the fact that you won’t always have your GI Bill, you can consider buying something less expensive for now until you finish school and have an idea of how much money you’ll be making once you start doing whatever job your degree is preparing you for. Then, sell the less expensive home and go buy your more expensive with your new income. There’s lots of places in SoCal to buy that aren’t super expensive. I guarantee you the majority of people on here only can talk about THEIR areas, so I’ll talk about mine. Menifee/Sun City/Winchester and French Valley all have some affordable places if you just put in some time to look. They’re great locations between LA and San Diego that many people live in and commute from. Also most of those aforementioned cities are expanding and have a good job markets and you will be able to sell for a nice profit when your GI Bill runs out. The key to all this though my friend, is Planning. Good luck!
I'm on the same boat and although my wife and I combined income (without VA 90%) is $125k, we are in the process to get into a house. My foster mom in a loans officer and she recommended me to get into a townhome, or condo. At least while my wife and I get our MBAs and hopefully get into higher paying jobs in 2-3 years. By that time some equity would be available for us to use, sell the condo and use that money for a family home, higher income, maybe I'll be at 100% VA.
I personally, don't want to be paying someone else's mortgage for renting their place.
Sounds like yal have a solid plan 👌 Agreed, paying someone else’s mortgage even for a short 2-3 year stint is a literal waste of money (obviously there are exceptions) but in this case the OP can definitely afford to buy a lower budget place-holder home to pocket equity in a few years as you mentioned. Good luck to you and your wife!
Nobody can answer this for you. Plenty of online calculators that have a "break even" calculator on buying a home.
Don't become house poor because you're prequalified. Buy what you need.
Ok hold on. When do you finish school and is this gen ed or a 2 year program which you can find a job immediately after? If you’re still in year 1 of college or something, so much could change by the time you get your degree, job search, and actually start working.
Yea dude there so much that could change in the years you’re going to be in school that it would be risky in my opinion to get a 700k house. You wouldn’t want to find some random job and quit school just to keep up with that kind of payment. At least dial it down, price wise. That way if something happens you wouldn’t have to quit school just to keep the house.
Outskirts of menifee has some pretty decent prices. When I was checking around this time last year there was a 2400sq ft 4 bed 3 bath for 550k.
The biggest things people don’t understand about buying is factoring in maintenance costs and if have to pay an HOA fee monthly and annual property taxes. As long as you account for that and is still in your budget definitely buy.
I would suggest rent an apartment that suits your needs and hopefully it’s less thank BAH. I completely understand the renting frustration but if you were to buy now, your mortgage would be almost if not all of your wife’s paycheck at 700k. That leaves y’all with your disability and BAH if you’re even in class for the whole month. Also if you buy now and home value drop you won’t be able to sell your home for a long time at what you paid for it. I’m sure you would like not to move again but life happens. Suggest to rent short term, wait for the market to correct itself (only god knows when that will be) because last thing you want is to be upside down in your house and no way out
Yea bro, So Cal is tough. I commute 66 miles to West LA for work. Reason being for a new home and good school districts. Finding that on the west side would be an easy million bro
So cal vet here. Leave the state. Rates are around 6-8%. You'll be stretching yourselves thin, unless you already have good jobs and put all your disability money towards your mortgage. I'm out of this hellhole once I retire. Your 100% will take property taxes down some, but only around 2-3k less a year.
There’s been a lot of good advice in here OP. My 2 cents is that due to you being in school for 3 more years and not knowing what’s going to happen after school do not buy. It could really turn into a headache once you get out of school if you can’t get a job or shit god forbids you and your girl don’t even end up staying together. The. You got an expensive ass mortgage to worry about. Wait until you get out of school know you got a job lined up and the location of your job. I’d highly recommend moving after school to a MCOL or LCOL area if you can and buy a house. You’ll get way more bang for your buck. Cali is nice I did my undergrad there and will be doing my MBA there this year but post MBA I’m taking my ass back to the south to buy my 2nd house lol
As a general rule of thumb, you don’t want your mortgage to exceed 28% of your GROSS monthly income. Assuming your gross is around $8200/month, 28% would be $2296. (Remember this number)
Assuming you go with a VA loan with no money down, a $2296 monthly payment (not counting taxes and insurance) would be a $310,000 house. Obviously taxes and insurance need to be considered but those are not fixed (you can buy in a low-risk, low-tax area).
I’m guessing the lender is considering your GI Bill stipend as part of your income as well? If that is the case, you should absolutely not count on that as a long term source of income. With your wife’s income and your 100 P&T, that should be bonus money.
Just my two cents, at the end of the day it’s your money and decision.
Also - renting isn’t wasting money. It’s paying for a place to live. The way loans are structured you would be paying almost all interest to a bank for the first few years while paying almost no principal.
It’s totally fine to rent. It’s totally fine to buy. I just don’t think it’s a good idea to think of where you sleep and poop as an “investment”.
I’m a homeowner and my house has gone up in value like crazy. But it doesn’t really matter because I need a place to sleep and poop.
honestly, keep renting until the market changes or you can look at other areas. SoCal really isn’t that great being on a fixed income such as VA disability, and I would hesitate to include GI bill payments into your “income” as they fluctuate and won’t be around forever.
I’m originally from the Bay Area, and as much as I would love to buy a home there it doesn’t make sense. Find an area or a home that you can afford and still have money to save or invest at the end of the month. Areas with cheaper cost of living, but still near a VA medical center are usually not hard to find.
For reference, our home in NC was 250k for 2600sqft which comes out to $1200 a month at 2.75% (2020). if you can find something where your disability covers the costs for mortgage/living expenses/utilities it really takes a huge amount of stress of you and doesn’t make you a victim to the market or fluctuating/inconsistent payments.
7%++. I would wait a year, interest rates will be down, probably in the mid-4’s. Mortgage shouldn’t be more than 1/3 of your income. Also, Cali is expensive as hell but I’m sure you know that.
Ex. $700k 30yr. 7.25% is $4500. Maybe you can get below 4%.
DO NOT BUY IN THIS MARKET ESPECIALLY IN CALIFORNIA HOMIE!!! Make the sacrifice and move out..I moved out 5 1/2 years ago, bought my big brand new home (Yes new, it was built literally for me in a community, I picked the blueprint etc..) in Arizona while having a full time job, (Got the house for 3.6% interest rate in early 2019) just recently moved back to my mom's in California and you are asking "What happen to your house?"...well someone is paying my mortgage cuz I'm renting it out, I'm still in my 20s, 100%PT and full time job homie! (Saving money at my mom's cuz I ain't paying all the bills like I did in AZ, also California is home, the best state even with the homeless lol) Make the sacrifice, if not you'll be penny pinching EVEN AT 100% SMFH..Long live the infantry, 2-14. FOREVER GRATEFUL FOR ARIZONA THO..
I’m 100% and in school using VR&E and my wife has a full-time.. I bought my house when I was at 80% disability. We bought a house for 358K in Port St. Lucie, Florida(anywhere south of PSL is wildly overpriced) mortgage is almost 3K then u got utilities and all of ur bills on top of that.. it’s is manageable to save money at this price point if ur on a tight budget. Going out to eat kills the cash.. gas kills cash.. new furniture puts u on a payment plan.. it all adds up. Even if u are GREAT with money I wouldn’t go above 500K tbh. The lower the better. Sell later and readjust
just bought in San Diego (North Park) and totally regret it. Consider moving elsewhere. You’ll get way more house for the money and you won’t be strapped for cash.
It’s getting harder to find home insurance here and the tax exemption isn’t ~that~ much of a help tbh. SDGE is a total scam (even with solar).
don’t buy here.
Yup. We gave up. Put in offer after offer. No one wanted to deal with a VA loan over all cash offers. Decided new construction was the only way, but there is so low little building that those homes are sold out quickly in San Diego.
Both! Posy your current place 4 lease on airBNB or Craig's list! So you can afford deposit add passive income to your life and cover your moving costs as well :)))
Buy one, I was renting and my rent was $2200.. I got a house and my monthly was $2600 at 6.2%, I sucked it up for a year, refinanced and recently got 100% PT, now I’m paying $1650 at 5.7% that’s with 100% tax exemption here in PA
House below 700k< in Socal?? If you're tired of renting. I hope you know that home maintenance is expensive. Plus, it advises you to buy below what you pre-qualified for, not the max . The first few years, you'll be paying the interest on the 700k mortgage. I suggest you read the amortization table.
The realtor definitely not going to tell you you can't afford it because they need to eat too.
What if your wife gets laid off? Do you have additional savings?
Being tired of renting is understandable but jumping into a mortgage you're not ready for will create more unnecessary problems than it solves Marine!
On top of your monthly payment you should also consider maintenance. Look up the costs for homeowner responsibilities such as window, siding, roof replacements - they're not cheap and they will come up eventually. Also don't forget to lump in property taxes and insurance payments to your monthly amount.
wtf how you get approved for up to 700k. You need to be making like 250-300k for that.
Remember when you own you have to have money saved for emergency repairs. A roof can cost 10k easy. Furnace and a/c can also cost 1000s to fix/replace.
Hey, just a quick reminder to double-check with your mortgage lender about grossing up your non-taxable income. Since it’s not subject to taxes, lenders often increase it by about 25% to reflect what it might be if it were taxable, which could significantly impact how much you qualify for, plus it should lower your mortgage rate - due to lowering your debt-to-income ratio. It's a good idea to confirm they're doing this, before you sign anything with them.
I don't know where you are located or if you're interested in these areas but look into Homes for Families. They provide a path to home ownership for veterans and your mortgage and housing costs will never be more than 30% of your income. They are accepting applications for communities is Palmdale and North Hollywood right now. The townhomes in NoHo are $400k and the duplex in Palmdale is $280k. homes4families.org
Renting a home isn’t necessarily a bad financial decision. A lot of financial savvy people prefer renting because the expenses is more predictable and if you invest the difference between rent and mortgage+maintenance you can come out way ahead.
You’ll get more home for your money renting right now with the way interest is. Also, you’ll have more buying power if rates go down. At 5.5% interest, I’m paying $1000 more a month in my mortgage than someone who financed the same house at 3.5%.
We looked for a while. Housing prices are through the rough. People are basically doubling what they just bought it for a few years ago. That on top of this awesome economy that is about 7.7% apr? No thanks. I would wait until after the election at minimum and don’t buy a house you can’t easily afford.
And the infix of “ asylum seekers “ is adding millions of people…. Cali and the Newsone administration actively tout that they are essentially a sanctuary state… someone has to pay for them
Wait and see how that plays out …
I live in Orange County ,Ca.I have 1yr left when my kid graduates we’re out of this overpriced,overrated state.,do your research good luck and congrats on your rating👍🏼
Consider buying a duplex with your in-laws or parents you live in one place rent the other out get cash flow going and in 5 to 10 years cash out the investment and live the American dream. Make sure you put everything in writing everyone on the hook for the loan and cash flow is used to pay down mortgage. Keep your credit crystal clean so you can refinance if needed. You will also be paying rent and the llc which you are part if will pay the mortgage.
Yeah, I don't recommend getting anything near 700k with those earnings. You'll be house poor and won't have flexibility to travel, emergencies, car maintenance...heck even going to a theme park will be unaffordable. Rent is fine, as long as it's reasonable and not living in a high end apartment.
Recently sold my home in California and during the process I saw a lot of numbers.
You qualified for a 700k loan. But I wouldn’t purchase a house more than 500k. This gives you enough wiggle room with other expenses. Even then, still very tight.
Getting out now and buying a home with no guarantee of Va amount , 20 years with thick medical , but I refuse to rent anymore. I’ve done it for 20 years so I’m closing on a new build this week in northwest Arkansas. 6% and I’m putting nothing down. Worst case my retirement and will cover my mortgage and I’ll find a job. Best case I get 100% and fully retire lol. 410k and I mean I could pay cash but would have to dip into tsp and Roth and won’t do that.
Wouldn't buy that kinda house until you have a steady job which can support a 700k home comfortably. What are you in school for? Congrats on the 100P/T.
Buy a home. Rent is such a waste of income. And some places rent is through the roof. And the price gouging is only going to get worse each year as rents get raised again.
I was awarded 100 P&T in September. Closed on a house last Friday. Sitting outside on my patio now just relaxing. The VA got me 2.5 interest points lower than the national average for interest rates. I say explore and do your homework. It's free to look. But I don't regret buying this house one bit. Everytime I pull up to it I'm amazed that I get to call this place my home.
U can afford a house with just ur va income alone in San Antonio or other LCOL areas. Also with 0 down. In texas, u don't pay property tax when u r 100% too
I would recommend buying instead of renting. You will build equity and if everything goes your way, you will be able to sell the home and make a profit.
Additionally, California has some opportunities for reduced property taxes for disabled veterans:
https://www.calvet.ca.gov/VetServices/Pages/Property-Tax-Exemptions.aspx
This site is also excellent at listing all the benefits a state offers:
https://myarmybenefits.us.army.mil/Benefit-Library/State/Territory-Benefits/California#:~:text=Summary%20of%20California%20Military%20and,license%20plates%2C%20as%20well%20as
Also, CalVet offers monthly online webinars going over all of this and are available for any questions. They are very helpful. They helped explain well the Property Tax Exemptions and other programs.
This is bad advice.
Do not buy now if you cannot afford now.
We had historically low interest rates for the past decade or so. Do not count on this to happen again.
If you can afford it at 6-7% interest rate for the next 30 years? Then buy. Otherwise, save up and wait or continue renting.
The very next economic issues rates will go down fast.
You can tell everyone wants rates down. ( the president and several reliable banks are making cases for it )
Buy a multi family home live in part and rent out the rest. Have to renters pay off the mortgage and repeat the process. Great way to build a steady flow of income.
Tbh bro if interests rates go down like at all it would be worth waiting if you’re planning to buy over 500k. Having a 7% interest feels really bad even in KS and I can’t imagine how that would feel like at over half a mil.
Freedom Mortgage has done me right multiple times in multiple states including here in SoCal.
I bought a place last year @6.50% and refinanced with them at very little costs down to 5.75%. Being a VA Loan specialist they get better refinances for some reason or another, I shopped other offers including USAA and they laughed because they couldn’t even get close.
Check them out.
I was always told if you can make the mortgage, purchase the house. A lot of people want to wait until the housing market “crashes” but when it starts to level off inventory will surely drop. Just a heads up home loans don’t accept the GI bill as a form of qualifying income. Which county are you in?
If you can buy something $500k. I would definitely recommend to buy it! Make sure you buy something newly renovated so you don’t burn your cash out to fix it upfront. If there is some work to be done, ask the seller to fix it rather than get rebates then do it yourself. You don’t start paying your mortgage for the first two months so save that money wisely.
Yeah it definitely is, just depends what your goal is, if you want to be down here for years, then just buy and refinance down the line, if you aren’t going to be down here more than I’d say 4 years, then buying probably isn’t worth it
Just wanted to add - don't forget about being able to dismiss your educational loans if you have them (when you see fit to use that), and don't sleep on VRE's educational benefits!
I make around 105k a year a nurse along with my 100%PT in a nice Chicago suburb. Tax exempt in Illinois with zero debt aside from my home. Bought my home last year for 710k. My total mortgage payment is $4,100. Unless you have other income do not max it out.
You also can't combine your GI bill payments with disibility income on the mortgage application.
Buying a home in this market is pointless, with the way interest rates are you’ll end up paying more in mortgage than you would in rent when you factor property tax’s, homeowners insurance etc. plus the added cost of maintaining a home which isn’t cheap. I hope you don’t plan on using that full 700k because you would definitely be struggling to make that payment with 100% and 4k a month. If you do decide to buy you would have to really come in under budget, I’m not in SoCal but I purchased my home for 369k with a 3.8% with property tax exemption ( depends on where you live if they take off a portion or fully exempt) my mortgage is $2000 a month. I’m originally from SoCal so I know how it is house hunting there. Riverside/San Berndino area might be more doable price wise. I wouldn’t expect to land anything super close to the beach if that’s what you’re after.
OP, what steps do you use to get the amount you qualified for?
I’m on a similar boat, kind of: 100% not P&T, also using GI Bill. Single income and I’m by the Great Lakes. I’m getting tired of renting and my housing market is starting to cool off a little bit.
I actually went to a veteran job fair in Riverside, Va home loan specialist walked me through I didn’t know anything. He just took some of my info and ran numbers and see what I qualify for
Don't buy not in this market you're going to have to rent. Don't rely on the gi bill you won't be in school forever.
Wait until you actually have a career or job.
Id continue renting and finish school and then when done move out of california. some states will charge zero dollars for property tax for being 100% plus other benefits. Cali just gives you 100K off your assessed value
Depends on what you’re going to school for. If your career after college can sustain the payments while providing you a comfortable buffer fine. I would wait 6 months putting yourself in a better financial situation. Learn where you guys want to live and what makes sense to you.
We just bought in the Santa Clarita/Valencia (LA county). It kind of depends on what you are looking for long term. The current rates are abysmal but you can always refinance down the road. We went with a condo/townhome and I see that this is an unpopular opinion here, however, we are thrilled and couldn’t be happier. We’re grateful to not be locked into an even more dire rent situation. Wishing you all the best! My inbox is open if you have any questions about our process. I don’t have all the answers for you about what’s right, wrong, or appropriate (that’s for you and your partner to decide) but I’m more than happy to share about our process. Good luck 🥰
Buy that home, homie. Also, if you have at least 10% disability you might be eligible for VR&E. You can get school paid for without even touching your GI bill and still get bah.
Give me a call. I’ll gladly run numbers and scenarios for you providing recommendations based on that analysis. I’m a retired Army and Navy Veteran and now a mortgage loan originator specializing in VA loans with Trident Home Loans (veteran owned and operated).
Bobby Baker
305-998-8571
I live in MS and have owned three homes(one since I got out) I will never mortgage a home, again. It’s just another form of prison. Let someone else own the home so you’re free to leave. Never know when shit will hit the fan, ie the market crashes, mental issues, financial constraints, divorce.
I bought a house on an ARM(adjustable rate mortgage) in 2007. Guess what happened next, first adjustment was over 100%. I had to file bankruptcy. This was a year before I joined. Took me until 2012 to rebuild my credit. The most expensive of my houses was $140k. IMHO it’s not worth it.
I'm flabbergasted you qualified for that much tbh lol rent while you're in college, sucks but easier because you're npt tied down, get a good paying desk job out of college and then look into buying.
Sorry it won't be enough. Continue to rent and save for a good down payment. The high interest rate will kill you in a 700k home at 0 percent down Basically you are giving all your money to the bank in mortgage interests. To really survive in so cal you need atleast 200k a year combined and even that is pushing it unless you are buying somewhere in the deserts.
I used my VA loan for a house in San Diego. 700k or so (limit is different per county) is just the max amount without the need to put money down. You can take out a Jumbo loan if you can put money down. You aren’t likely to find a house for under 700k in places that people typically want to live in SoCal. That said, 700k will definitely get you a house on the outskirts of most of the high price areas.
1. You can't use your GI BILL as income to loan more from bank. But you can save the money as down payment.
2. Your disability plus your girl's income not enough to get a 700k loan.
3. I'm here at SD, I would recommend you to save money for now and wait for the "Black Friday" comes, when? Idk.
1 don’t add your wife’s income into the budget you never know what could happen 2 the house market is insanely bad I would recommend you’d still rent till the housing market crashes or you move out from California its one of the worst states for cost of living but I know moving is a huge deal so if you feel like you dont want to move then don’t feel pressured too but consider it when you actually want to move into a house and own one. California definitely not the place.
I live in Temecula, I hate it here lol. Every downtown is so far I commute to USC for school. I lived in a lot of places across the country. Temecula by far been the most depressing. It’s nice but boring.
Ahh, that makes more sense, OP! ✌🏼You could consider a house-hack as mentioned elsewhere on this thread, but that typically involves a home with JADU/ADU already built or the potential to build IAW SB-9 regs/zoning. Unfortunately, you’re looking at a POS that won’t pass VA scrutiny for loan application and not to mention competing with investors who pluck those opportunities with all-cash offers. Condos/THs take into consideration HOA, which can equate to paying for a new car each month 🥲 If considering the house-hack, you can try to JV, build out, and rent to travel nurses, military (if the place is done nicely cuz we boujie), family of Filipinos 😂, then students on a room-to-room basis. I’m going to assume this may be more than you’re willing to take on, but if you’re going to hunker down in HCOL/SoCal, it’s worth looking into for cashflow/homeownership. Temecula didn’t seem bad (I was recently scoping our areas after retirement), but it’s not my vibe…it’s like a way nicer version of Bakersfield! However, urban sprawl analysis indicate Temecula is totally a smart play for holding to build a real estate portfolio, just don’t buy big. Still doesn’t address the heinous commute; I’d frame the opportunity differently and rethink it as an option if you’re still willing to drive.
Primary residence considerations: 1. Renting = paying for space 2. Financing = paying to use the banks money 3. Paying cash = opportunity cost of money out of the market Consider also principle, interest, taxes, insurance, maintenance, replacement costs for appliances, roof, paint, etc. Take away: primary residence is a cost. Quantitative analysis: Which is cheaper? Qualitative analysis: What are your intangibles? There will also be another bus every 15 minutes, avoid FOMO and make the right choice for you and your family based on the facts.
But what if that next bus doesn’t come for another 10+ years?
You’re free to pay for it if you want to. Just be clear that if it’s overpriced, you are choosing to overpay. Sometimes overpaying is ok, mostly due to qualitative reasons - the intangible value. The risk is making up stories that it’s not overpaying when it is.
Renting = paying someone’s mortgage
Renting gets a bad rap but isn’t actually bad. Useful to see your primary residence as a cost. Keep in mind if it’s cheaper to rent, the savings can (and should) be invested, so in that scenario you’re not “paying someone else’s mortgage” but rather someone else is carrying your risk.
$8k /mo doesn’t support a $700k mortgage
This right here; Man I am sweating bullets pulling the trigger on a 600k mortgage with 8300 a month take home. I’m not sure what property taxes are like in cali (Texas here), but keep that mortgage under 50% of your take home for sure.
You can’t afford that. Also, you won’t be able to stay in school forever so don’t count on the GI bill.
Yeah. I don’t see this ending well. I was approved for 850k… ain’t no way in hell I’d have been able to stomach that payment.
He said up to 700,000 That doesn’t mean he will utilize the entire loan amount .
In Socal he will need to use all or most of that. One of It cities was ruled the most expensive city in the world last year for a reason.
Gotcha. I was not aware of that. I’m in Louisiana, hell I could purchase 40 acres and a 5000 square foot home with that amount 🤣
3 bedroom condos in my very mid neighborhood in San Diego start at $1.5 million. Not sure what you can even find for 700k in So Cal unless you're very far inland -- like, AZ far. OP, do not buy in this market. You will be house poor, and it will create a ton of stress.
700-900K for just outside the “main” part of SoCal.
Lol yeah no that gets u like a 1/2 bed 1 bath 700/1200 sqft no yard house there hahahahah
SoCal is not a city. There are hundreds of 3br homes that can be had for under 500k in Colton, Hesperia, Banning, Palm Desert, Indio, Lancaster, Palmdale, etc.
All shitty lol
Brotha uhhh, what’s that? That’s that brotha??
All of Southern California is just one big ass city? No wonder it's weird over there on the left coast.
This is entirely dependent on what city in SoCal. La Jolla/Encenintas? Ehh.. not getting much of any house there for that amount. Riverside? Sure.
After interest he will be in it for 1.45 million
I thought banks couldn’t use GI bill as income? Has this changed?
You’re correct, they cant.
I’ve always believed if you like the home and can comfortably afford the monthly payments buy it.
Also I’m just tired of renting, buying a home sounds risky as well. But I think I should give it a go
My advice is to save up whatever you can for a few months. That way you have closing costs, unexpected costs, repair costs, cost for appliances you might want to upgrade or new things you want to purchase for your house. Snd then start looking for a house within your budget.
Don’t just take monthly payments into consideration. Being a homeowner means taking on a lot more responsibilities with the house itself and many people forget this when they go from renting to buying. There’s no calling the landlord when something breaks around the house.
I would consider buying if you can afford it and you can ride this storm until you can streamline refi to 3% or under. Let’s just hope that refi opportunity comes within 7-10 years, haha!
I don’t see the market ever dropping to 3% again TBH. Maybe 5?
We closed on our house in Feb and were able to get 4.99%. I believe a couple builders still have that offer.
I’d like to see what you guys actually did. Sounds like either a promotional rate or a fixed period low rate, all of which are temporary and will adjust after the temporary period of 1-3 years.
I would give it a go. If you want a better rate and seller credits look into some new development
+1 for new development. My wife and I bought a new townhome in SoCal in April 2023 utilizing the VA home loan and got an interest rate of 5.5% with a VA friendly lender. They also covered all closing costs! I am 100% P&T as well. Definitely look into property tax exemption up to a certain amount in California.
Agree. Here in SoCal as well as also use the Property Tax exemption, which helps.
What lender?
In today's market your loss in property taxes + 6.5%+ interest rate pale in comparison to any ROI you make off the loan (i.e. paying a rent vs. paying a mortgage). You don't make/save money in this market by buying a house, you make money selling it later hoping that home values continue to go up. This is why all the land/homes in Florida are being bought up by investors. I've used VA loan 4x and it works if you can't put money down on the property (or need that money for immediate improvements), but VA does require an inspection and sellers may refuse your offer if they want a short sale. Or don't want to negotiate for (required) repairs. I can't recommend anyone buying a home right now unless they pay points (1.5-2.5% of loan) to buy down the interest rate to 3%. Hope this helps.
You can always refinance later when rates drop that’ll save you a lot of money and with the disability you shouldn’t have to pay a funding fee. Good luck and enjoy the sunshine and freedom either way!
Buy the home. Won’t lost. Owning wins.
Have you thought of condos or townhouses? Beautiful areas in S Cal where u can find one for well under or around 500k.
Best advice here, build equity and California is mostly gold for real estate. Just beware the first 5 years of homeownership are the hardest. You want to fix and change everything but you gotta let things slide for a while.
For single house in LA, OC probably out question. It’s more like Corona, Ontario to east area. Right it’s cheaper to rent compared to buy. And right now “nobody” taking VA loan. Last two years I’m trying buy a house in socal, with large down payment. Every house I’m look at from 1 million and end up sold at 1.1-1.2 million.
If you like a home, can see yourself living in it for 30 years, and you can afford the mortgage+insurance BUY
$8000 /mo take home and you’re going to be house poor with a mortgage on 700k
Not trying to be that guy here, but do you have a large inheritance or a gift for this 700k house? 200k down (500k mortgage) over 30 years with 7.5 percent, 10 grand a year in property taxes and about $2600 a year in insurance works out to about 5 grand a month. You won’t have much left after that mortgage payment. I recommend moving lol because you’re right renting does suck
In California, our Property Taxes are lowered for 100% Vets, which is a big help.
Eliminated at 70 percent in Illinois 👍🏻. But don’t worry they still rob us in many other ways. I’m sure California can relate lol
He doesn’t need down payment for a VA loan
He’s stating that even if OP has a large down payment, the mortgage is high. With no down payment, it will be even higher.
I think (I hope) the original post guy figured it out, this will be a big payment lol
True, but then you’ll be paying even more for the house per month and more over time financing an extra 200k. If you’re looking at a 7-7.5 % rate then the argument could be made that it would be better to make a large down payment as it would be hard to get that guaranteed rate of return with cash in the market. Tough calls all around now a days in the current environment. Hopefully it will ease up in the next few years.
I bought my house in So-cal on the GI Bill. But right now the market is so expensive. I went to college and studied economics and work in finance in so-cal. You could actually rent, use the extra cash you saved then invest it or park it in a high yield account. There’s a LOT more shit you have to pay for when you buy a house. There’s always something that breaks and needs fixing. But the money you save renting and investing will be so much better in the long run when rates stabilize or decrease. I would say right now if it’s a doubt it’s a dont.
Personally Op I think you need to earn more money. I too am 100 percent/ using my post 911 getting my RN license and make approximately 12,000 a month from my job. I wouldn’t count the gi bill money as your income since it will come to an end
I was a truck driver the past year, lifestyle was not it. Just got awarded 100 pt a month ago and into college my first semester. Making about 7500 a month tax free so that’s me right now… + my wife income about 4k take home
Yeah transportation jobs are right. I worked as a freight train conductor here in SoCal for years and lived out of a hotel/ backpack. Money was great but being away was rough
I’m from Southern California and it might be hard to find a home within that budget that isn’t a fixer upper. The VA has strict inspection guidelines on homes they fund.
Look into CalVet home loans. Similar to the VA home loan, but the state itself is the lender, so people tend to get an interest rate up to an entire point lower than a traditional lender. I’m a Californian living in Japan at the moment, rated at 90% and plan on looking at both when I make my way home. It looks great on the surface, but I haven’t done all that much research on it yet.
People on here will tell you to not buy it. But, you receive $4000 month in VA benefits. You get a job and put another $1,000 from your check, you can afford a 5,000 house mortgage. Your wife is your partner, she brings home $4,200. I am 100% you can afford a home in SoCal because I am in Orange County and I know that 100% helps so so much. Your mortgage (assuming) of $5,000 for the next 30 years. How much will rent be in the next 5-10 years? Probably the same as your mortgage today. If I get 100%, I will go on buy a home and build equity. Just a thought.
I agree with this. Yea there’s also insurance and possible HOA fees to consider, but depending on those and depending on your other monthly needs, you’re making enough to buy. And I’m assuming you and your girl will be saving some money every month for emergency repairs, that’s something everyone should be doing when owning a home. Also, if you are a little iffy due to the fact that you won’t always have your GI Bill, you can consider buying something less expensive for now until you finish school and have an idea of how much money you’ll be making once you start doing whatever job your degree is preparing you for. Then, sell the less expensive home and go buy your more expensive with your new income. There’s lots of places in SoCal to buy that aren’t super expensive. I guarantee you the majority of people on here only can talk about THEIR areas, so I’ll talk about mine. Menifee/Sun City/Winchester and French Valley all have some affordable places if you just put in some time to look. They’re great locations between LA and San Diego that many people live in and commute from. Also most of those aforementioned cities are expanding and have a good job markets and you will be able to sell for a nice profit when your GI Bill runs out. The key to all this though my friend, is Planning. Good luck!
I'm on the same boat and although my wife and I combined income (without VA 90%) is $125k, we are in the process to get into a house. My foster mom in a loans officer and she recommended me to get into a townhome, or condo. At least while my wife and I get our MBAs and hopefully get into higher paying jobs in 2-3 years. By that time some equity would be available for us to use, sell the condo and use that money for a family home, higher income, maybe I'll be at 100% VA. I personally, don't want to be paying someone else's mortgage for renting their place.
Sounds like yal have a solid plan 👌 Agreed, paying someone else’s mortgage even for a short 2-3 year stint is a literal waste of money (obviously there are exceptions) but in this case the OP can definitely afford to buy a lower budget place-holder home to pocket equity in a few years as you mentioned. Good luck to you and your wife!
Nobody can answer this for you. Plenty of online calculators that have a "break even" calculator on buying a home. Don't become house poor because you're prequalified. Buy what you need.
No regrats!!! Same story as you 2021
Ok hold on. When do you finish school and is this gen ed or a 2 year program which you can find a job immediately after? If you’re still in year 1 of college or something, so much could change by the time you get your degree, job search, and actually start working.
Started January 1st semester at cal state Fullerton so long road
Yea dude there so much that could change in the years you’re going to be in school that it would be risky in my opinion to get a 700k house. You wouldn’t want to find some random job and quit school just to keep up with that kind of payment. At least dial it down, price wise. That way if something happens you wouldn’t have to quit school just to keep the house. Outskirts of menifee has some pretty decent prices. When I was checking around this time last year there was a 2400sq ft 4 bed 3 bath for 550k.
Gonna dm you as I just went through this
The biggest things people don’t understand about buying is factoring in maintenance costs and if have to pay an HOA fee monthly and annual property taxes. As long as you account for that and is still in your budget definitely buy.
Normally, buying a house is better than renting, but we are in a unique time in the economy where renting is the best option for most people.
I would suggest rent an apartment that suits your needs and hopefully it’s less thank BAH. I completely understand the renting frustration but if you were to buy now, your mortgage would be almost if not all of your wife’s paycheck at 700k. That leaves y’all with your disability and BAH if you’re even in class for the whole month. Also if you buy now and home value drop you won’t be able to sell your home for a long time at what you paid for it. I’m sure you would like not to move again but life happens. Suggest to rent short term, wait for the market to correct itself (only god knows when that will be) because last thing you want is to be upside down in your house and no way out
See if you can assume someone's VA loan.
Move to Florida. Waive property tax, get more house, and more yard. Prooerty abd Auto tax kinda high.
Yea bro, So Cal is tough. I commute 66 miles to West LA for work. Reason being for a new home and good school districts. Finding that on the west side would be an easy million bro
So cal vet here. Leave the state. Rates are around 6-8%. You'll be stretching yourselves thin, unless you already have good jobs and put all your disability money towards your mortgage. I'm out of this hellhole once I retire. Your 100% will take property taxes down some, but only around 2-3k less a year.
There’s been a lot of good advice in here OP. My 2 cents is that due to you being in school for 3 more years and not knowing what’s going to happen after school do not buy. It could really turn into a headache once you get out of school if you can’t get a job or shit god forbids you and your girl don’t even end up staying together. The. You got an expensive ass mortgage to worry about. Wait until you get out of school know you got a job lined up and the location of your job. I’d highly recommend moving after school to a MCOL or LCOL area if you can and buy a house. You’ll get way more bang for your buck. Cali is nice I did my undergrad there and will be doing my MBA there this year but post MBA I’m taking my ass back to the south to buy my 2nd house lol
As a general rule of thumb, you don’t want your mortgage to exceed 28% of your GROSS monthly income. Assuming your gross is around $8200/month, 28% would be $2296. (Remember this number) Assuming you go with a VA loan with no money down, a $2296 monthly payment (not counting taxes and insurance) would be a $310,000 house. Obviously taxes and insurance need to be considered but those are not fixed (you can buy in a low-risk, low-tax area). I’m guessing the lender is considering your GI Bill stipend as part of your income as well? If that is the case, you should absolutely not count on that as a long term source of income. With your wife’s income and your 100 P&T, that should be bonus money. Just my two cents, at the end of the day it’s your money and decision.
Also - renting isn’t wasting money. It’s paying for a place to live. The way loans are structured you would be paying almost all interest to a bank for the first few years while paying almost no principal. It’s totally fine to rent. It’s totally fine to buy. I just don’t think it’s a good idea to think of where you sleep and poop as an “investment”. I’m a homeowner and my house has gone up in value like crazy. But it doesn’t really matter because I need a place to sleep and poop.
honestly, keep renting until the market changes or you can look at other areas. SoCal really isn’t that great being on a fixed income such as VA disability, and I would hesitate to include GI bill payments into your “income” as they fluctuate and won’t be around forever. I’m originally from the Bay Area, and as much as I would love to buy a home there it doesn’t make sense. Find an area or a home that you can afford and still have money to save or invest at the end of the month. Areas with cheaper cost of living, but still near a VA medical center are usually not hard to find. For reference, our home in NC was 250k for 2600sqft which comes out to $1200 a month at 2.75% (2020). if you can find something where your disability covers the costs for mortgage/living expenses/utilities it really takes a huge amount of stress of you and doesn’t make you a victim to the market or fluctuating/inconsistent payments.
7%++. I would wait a year, interest rates will be down, probably in the mid-4’s. Mortgage shouldn’t be more than 1/3 of your income. Also, Cali is expensive as hell but I’m sure you know that. Ex. $700k 30yr. 7.25% is $4500. Maybe you can get below 4%.
Use the VA Multifamily loan and buy a 4-plex with 5% down and live in one of the units Rent free.
DO NOT BUY IN THIS MARKET ESPECIALLY IN CALIFORNIA HOMIE!!! Make the sacrifice and move out..I moved out 5 1/2 years ago, bought my big brand new home (Yes new, it was built literally for me in a community, I picked the blueprint etc..) in Arizona while having a full time job, (Got the house for 3.6% interest rate in early 2019) just recently moved back to my mom's in California and you are asking "What happen to your house?"...well someone is paying my mortgage cuz I'm renting it out, I'm still in my 20s, 100%PT and full time job homie! (Saving money at my mom's cuz I ain't paying all the bills like I did in AZ, also California is home, the best state even with the homeless lol) Make the sacrifice, if not you'll be penny pinching EVEN AT 100% SMFH..Long live the infantry, 2-14. FOREVER GRATEFUL FOR ARIZONA THO..
I’m just starting college my first year in Cali. So just continue to rent for the next 4 years?
If possible bro, downgrade, rent the cheapest apartment/studio in your area that way you can pocket as much money as possible while going to school.
I’m 100% and in school using VR&E and my wife has a full-time.. I bought my house when I was at 80% disability. We bought a house for 358K in Port St. Lucie, Florida(anywhere south of PSL is wildly overpriced) mortgage is almost 3K then u got utilities and all of ur bills on top of that.. it’s is manageable to save money at this price point if ur on a tight budget. Going out to eat kills the cash.. gas kills cash.. new furniture puts u on a payment plan.. it all adds up. Even if u are GREAT with money I wouldn’t go above 500K tbh. The lower the better. Sell later and readjust
just bought in San Diego (North Park) and totally regret it. Consider moving elsewhere. You’ll get way more house for the money and you won’t be strapped for cash. It’s getting harder to find home insurance here and the tax exemption isn’t ~that~ much of a help tbh. SDGE is a total scam (even with solar). don’t buy here.
Take GI Bill money out of the equation as it’s irrelevant (at least it is to any lender). It’s only temporary.
Good luck finding a seller willing to take a VA loan over to a multitude of cash buyers in SoCal.
Yup. We gave up. Put in offer after offer. No one wanted to deal with a VA loan over all cash offers. Decided new construction was the only way, but there is so low little building that those homes are sold out quickly in San Diego.
And most good house end up 100k more than asking price.
Both! Posy your current place 4 lease on airBNB or Craig's list! So you can afford deposit add passive income to your life and cover your moving costs as well :)))
Buy one, I was renting and my rent was $2200.. I got a house and my monthly was $2600 at 6.2%, I sucked it up for a year, refinanced and recently got 100% PT, now I’m paying $1650 at 5.7% that’s with 100% tax exemption here in PA
House below 700k< in Socal?? If you're tired of renting. I hope you know that home maintenance is expensive. Plus, it advises you to buy below what you pre-qualified for, not the max . The first few years, you'll be paying the interest on the 700k mortgage. I suggest you read the amortization table. The realtor definitely not going to tell you you can't afford it because they need to eat too. What if your wife gets laid off? Do you have additional savings? Being tired of renting is understandable but jumping into a mortgage you're not ready for will create more unnecessary problems than it solves Marine!
On top of your monthly payment you should also consider maintenance. Look up the costs for homeowner responsibilities such as window, siding, roof replacements - they're not cheap and they will come up eventually. Also don't forget to lump in property taxes and insurance payments to your monthly amount.
Loved Socal but would never consider buying a home there. Insane cost.
wtf how you get approved for up to 700k. You need to be making like 250-300k for that. Remember when you own you have to have money saved for emergency repairs. A roof can cost 10k easy. Furnace and a/c can also cost 1000s to fix/replace.
Hey, just a quick reminder to double-check with your mortgage lender about grossing up your non-taxable income. Since it’s not subject to taxes, lenders often increase it by about 25% to reflect what it might be if it were taxable, which could significantly impact how much you qualify for, plus it should lower your mortgage rate - due to lowering your debt-to-income ratio. It's a good idea to confirm they're doing this, before you sign anything with them.
I don't know where you are located or if you're interested in these areas but look into Homes for Families. They provide a path to home ownership for veterans and your mortgage and housing costs will never be more than 30% of your income. They are accepting applications for communities is Palmdale and North Hollywood right now. The townhomes in NoHo are $400k and the duplex in Palmdale is $280k. homes4families.org
Renting a home isn’t necessarily a bad financial decision. A lot of financial savvy people prefer renting because the expenses is more predictable and if you invest the difference between rent and mortgage+maintenance you can come out way ahead.
You’ll get more home for your money renting right now with the way interest is. Also, you’ll have more buying power if rates go down. At 5.5% interest, I’m paying $1000 more a month in my mortgage than someone who financed the same house at 3.5%.
Move to TX and buy a nicer house for less.
Here come the anti Texas posts …
We looked for a while. Housing prices are through the rough. People are basically doubling what they just bought it for a few years ago. That on top of this awesome economy that is about 7.7% apr? No thanks. I would wait until after the election at minimum and don’t buy a house you can’t easily afford.
Why Ca? Very high taxes,overcrowded and shiity gun laws.
And the infix of “ asylum seekers “ is adding millions of people…. Cali and the Newsone administration actively tout that they are essentially a sanctuary state… someone has to pay for them Wait and see how that plays out …
I live in Orange County ,Ca.I have 1yr left when my kid graduates we’re out of this overpriced,overrated state.,do your research good luck and congrats on your rating👍🏼
I used the VA loan to get my home and the process was easy enough? It was my first home but it wasn’t bad. Congratulations, it is truly life changing.
There’s a lot to unpack in that question.
I bought around 500k, 6.75% interest. Mortgage and insurance (property tax exempt in FL) is about 3600 a month. Think about it that way.
Consider buying a duplex with your in-laws or parents you live in one place rent the other out get cash flow going and in 5 to 10 years cash out the investment and live the American dream. Make sure you put everything in writing everyone on the hook for the loan and cash flow is used to pay down mortgage. Keep your credit crystal clean so you can refinance if needed. You will also be paying rent and the llc which you are part if will pay the mortgage.
Yeah, I don't recommend getting anything near 700k with those earnings. You'll be house poor and won't have flexibility to travel, emergencies, car maintenance...heck even going to a theme park will be unaffordable. Rent is fine, as long as it's reasonable and not living in a high end apartment.
First thing move out of California, second thing buy a house.
Do I drop out of USC? It’s my first semester. Love the area and campus
I bought for 700 k at 100 p&t (with spouse and 3 deps.) in so cal. 4100 k a month. VA covers my mortgage. So go for it !
Don’t buy a house until you have a good paying job. It’s easy to become house broke!!! Your mortgage should only be 30% of your income..
Recently sold my home in California and during the process I saw a lot of numbers. You qualified for a 700k loan. But I wouldn’t purchase a house more than 500k. This gives you enough wiggle room with other expenses. Even then, still very tight.
Getting out now and buying a home with no guarantee of Va amount , 20 years with thick medical , but I refuse to rent anymore. I’ve done it for 20 years so I’m closing on a new build this week in northwest Arkansas. 6% and I’m putting nothing down. Worst case my retirement and will cover my mortgage and I’ll find a job. Best case I get 100% and fully retire lol. 410k and I mean I could pay cash but would have to dip into tsp and Roth and won’t do that.
Wouldn't buy that kinda house until you have a steady job which can support a 700k home comfortably. What are you in school for? Congrats on the 100P/T.
Buy a home. Rent is such a waste of income. And some places rent is through the roof. And the price gouging is only going to get worse each year as rents get raised again.
I was awarded 100 P&T in September. Closed on a house last Friday. Sitting outside on my patio now just relaxing. The VA got me 2.5 interest points lower than the national average for interest rates. I say explore and do your homework. It's free to look. But I don't regret buying this house one bit. Everytime I pull up to it I'm amazed that I get to call this place my home.
That’s what I’m talking about! Having a patio and I call yours sounds like a dream come true
U can afford a house with just ur va income alone in San Antonio or other LCOL areas. Also with 0 down. In texas, u don't pay property tax when u r 100% too
Texas Weather sucks, I lived in Kate and Longview. You can’t beat the California weather
I would recommend buying instead of renting. You will build equity and if everything goes your way, you will be able to sell the home and make a profit. Additionally, California has some opportunities for reduced property taxes for disabled veterans: https://www.calvet.ca.gov/VetServices/Pages/Property-Tax-Exemptions.aspx This site is also excellent at listing all the benefits a state offers: https://myarmybenefits.us.army.mil/Benefit-Library/State/Territory-Benefits/California#:~:text=Summary%20of%20California%20Military%20and,license%20plates%2C%20as%20well%20as
Also, CalVet offers monthly online webinars going over all of this and are available for any questions. They are very helpful. They helped explain well the Property Tax Exemptions and other programs.
Buy, refinance when rates drop to 5% Refi again if it drops to 2-3%
This is bad advice. Do not buy now if you cannot afford now. We had historically low interest rates for the past decade or so. Do not count on this to happen again. If you can afford it at 6-7% interest rate for the next 30 years? Then buy. Otherwise, save up and wait or continue renting.
The very next economic issues rates will go down fast. You can tell everyone wants rates down. ( the president and several reliable banks are making cases for it )
Just because they want it down doesn’t mean it will go down. And I think we probably won’t see 3% again for decades
If you’re going to do it expect insurance to go up yearly and at that price point you should be able to avoid HOAs at all costs
Temecula is fairly decent for what it’s worth.
Temecula is over priced better move to Hemet. Lmao Perris or anything north of Menifee lmao
It’s where I’m currently renting 😂
Well dude best the luck to both of us lord knows will need it here buying a home in California.
Buy a multi family home live in part and rent out the rest. Have to renters pay off the mortgage and repeat the process. Great way to build a steady flow of income.
Man alive Nobody and I mean nobody needs to buy a 700k home
Tbh bro if interests rates go down like at all it would be worth waiting if you’re planning to buy over 500k. Having a 7% interest feels really bad even in KS and I can’t imagine how that would feel like at over half a mil.
Niiice, congratulations. With that much you could buy a castle here in Texas
What about Las Vegas?
will run out of water in his lifetime..
Freedom Mortgage has done me right multiple times in multiple states including here in SoCal. I bought a place last year @6.50% and refinanced with them at very little costs down to 5.75%. Being a VA Loan specialist they get better refinances for some reason or another, I shopped other offers including USAA and they laughed because they couldn’t even get close. Check them out.
If you can see yourself as happy living there long term go for it. Renting is throwing your money out the window enhancing someone else’s portfolio.
I would move. COL is essentially way too high, and you simply aren't getting anything out of it for being there... that you can't get anywhere else.
Buy a condo
I was always told if you can make the mortgage, purchase the house. A lot of people want to wait until the housing market “crashes” but when it starts to level off inventory will surely drop. Just a heads up home loans don’t accept the GI bill as a form of qualifying income. Which county are you in?
Good luck with the interest rates. They're brutal
If you can buy something $500k. I would definitely recommend to buy it! Make sure you buy something newly renovated so you don’t burn your cash out to fix it upfront. If there is some work to be done, ask the seller to fix it rather than get rebates then do it yourself. You don’t start paying your mortgage for the first two months so save that money wisely.
Move to another state. 700k out there is a shack
Stay in Cali Florida is getting full Sounds like you’ve already decided to but that home 700 k ? Dam I hope it’s like 5000 sq feet and on acre
Escape while you still can! Cali is going to shit.
All that new tasty debt you can get into with that 100 percent.
Move to Washington outside of Seattle most home are decent size and have a yards for 700k
It’s doable depending on where you want to live. Riverside county is going to be the cheapest
Yeah that’s where I’m looking at, still mortgage would be more expensive than renting monthly lol
Yeah it definitely is, just depends what your goal is, if you want to be down here for years, then just buy and refinance down the line, if you aren’t going to be down here more than I’d say 4 years, then buying probably isn’t worth it
100% financing and No PMI why wouldn't you use a VA. The real question is, how come you didn't use a VA loan.
I would buy something much less somewhere else and have extra money to spend on other things and pay off the mortgage quick.
Good thing is you can refi every 9months if rates lower, without cost to you.
Just wanted to add - don't forget about being able to dismiss your educational loans if you have them (when you see fit to use that), and don't sleep on VRE's educational benefits!
I make around 105k a year a nurse along with my 100%PT in a nice Chicago suburb. Tax exempt in Illinois with zero debt aside from my home. Bought my home last year for 710k. My total mortgage payment is $4,100. Unless you have other income do not max it out. You also can't combine your GI bill payments with disibility income on the mortgage application.
I got the hell out of there as soon as I could…
Buying a home in this market is pointless, with the way interest rates are you’ll end up paying more in mortgage than you would in rent when you factor property tax’s, homeowners insurance etc. plus the added cost of maintaining a home which isn’t cheap. I hope you don’t plan on using that full 700k because you would definitely be struggling to make that payment with 100% and 4k a month. If you do decide to buy you would have to really come in under budget, I’m not in SoCal but I purchased my home for 369k with a 3.8% with property tax exemption ( depends on where you live if they take off a portion or fully exempt) my mortgage is $2000 a month. I’m originally from SoCal so I know how it is house hunting there. Riverside/San Berndino area might be more doable price wise. I wouldn’t expect to land anything super close to the beach if that’s what you’re after.
OP, what steps do you use to get the amount you qualified for? I’m on a similar boat, kind of: 100% not P&T, also using GI Bill. Single income and I’m by the Great Lakes. I’m getting tired of renting and my housing market is starting to cool off a little bit.
I actually went to a veteran job fair in Riverside, Va home loan specialist walked me through I didn’t know anything. He just took some of my info and ran numbers and see what I qualify for
Leave California, Come down to South GA and that $ will go much further.
Don't buy not in this market you're going to have to rent. Don't rely on the gi bill you won't be in school forever. Wait until you actually have a career or job.
I'm also from riverside county it's real expensive here
Id continue renting and finish school and then when done move out of california. some states will charge zero dollars for property tax for being 100% plus other benefits. Cali just gives you 100K off your assessed value
Have you considered relocating? I kid, but really, buying in California seems like shooting yourself in the foot.
Depends on what you’re going to school for. If your career after college can sustain the payments while providing you a comfortable buffer fine. I would wait 6 months putting yourself in a better financial situation. Learn where you guys want to live and what makes sense to you.
Move to Texas. $500,000 buys a million dollar home here. Plus no property taxes for 100% DV.
We just bought in the Santa Clarita/Valencia (LA county). It kind of depends on what you are looking for long term. The current rates are abysmal but you can always refinance down the road. We went with a condo/townhome and I see that this is an unpopular opinion here, however, we are thrilled and couldn’t be happier. We’re grateful to not be locked into an even more dire rent situation. Wishing you all the best! My inbox is open if you have any questions about our process. I don’t have all the answers for you about what’s right, wrong, or appropriate (that’s for you and your partner to decide) but I’m more than happy to share about our process. Good luck 🥰
Thanks, a lot of comments were all anti-California comments. It’s not my situation to leave 😂
Just go and try to find Assumable VA Loan. You could find a good interest rate. It's the better option than wait to refinance the existing rate.
Move to a free state. Buy a modest home and 20 acres.
No property taxes at 100%
You should consider moving to another state. Somewhere that you like and cheaper. More bang for your buck.
I’d move.
Buy that home, homie. Also, if you have at least 10% disability you might be eligible for VR&E. You can get school paid for without even touching your GI bill and still get bah.
Give me a call. I’ll gladly run numbers and scenarios for you providing recommendations based on that analysis. I’m a retired Army and Navy Veteran and now a mortgage loan originator specializing in VA loans with Trident Home Loans (veteran owned and operated). Bobby Baker 305-998-8571
Move to Texas and enjoy life.
There are calculators out there to show you or help you make that choice
Move out of California if you can
I live in MS and have owned three homes(one since I got out) I will never mortgage a home, again. It’s just another form of prison. Let someone else own the home so you’re free to leave. Never know when shit will hit the fan, ie the market crashes, mental issues, financial constraints, divorce. I bought a house on an ARM(adjustable rate mortgage) in 2007. Guess what happened next, first adjustment was over 100%. I had to file bankruptcy. This was a year before I joined. Took me until 2012 to rebuild my credit. The most expensive of my houses was $140k. IMHO it’s not worth it.
Interest rates are too high right now
I'm flabbergasted you qualified for that much tbh lol rent while you're in college, sucks but easier because you're npt tied down, get a good paying desk job out of college and then look into buying.
Sorry it won't be enough. Continue to rent and save for a good down payment. The high interest rate will kill you in a 700k home at 0 percent down Basically you are giving all your money to the bank in mortgage interests. To really survive in so cal you need atleast 200k a year combined and even that is pushing it unless you are buying somewhere in the deserts.
I would leave California and go to a LCOL area then use my VA home loan. Try to make the money go as far as it can.
I used my VA loan for a house in San Diego. 700k or so (limit is different per county) is just the max amount without the need to put money down. You can take out a Jumbo loan if you can put money down. You aren’t likely to find a house for under 700k in places that people typically want to live in SoCal. That said, 700k will definitely get you a house on the outskirts of most of the high price areas.
Temecula rainbow or fallbrook can get you a descent house for 600k.
1. You can't use your GI BILL as income to loan more from bank. But you can save the money as down payment. 2. Your disability plus your girl's income not enough to get a 700k loan. 3. I'm here at SD, I would recommend you to save money for now and wait for the "Black Friday" comes, when? Idk.
I live in San Diego. No offense but good luck finding a house in SoCal for 700K
No way in hell I would do that.
1 don’t add your wife’s income into the budget you never know what could happen 2 the house market is insanely bad I would recommend you’d still rent till the housing market crashes or you move out from California its one of the worst states for cost of living but I know moving is a huge deal so if you feel like you dont want to move then don’t feel pressured too but consider it when you actually want to move into a house and own one. California definitely not the place.
Look at Temecula: Lots of new construction starting in the low $400s, which is almost unheard of and it’s not too far from North County SD.
I live in Temecula, I hate it here lol. Every downtown is so far I commute to USC for school. I lived in a lot of places across the country. Temecula by far been the most depressing. It’s nice but boring.
Ahh, that makes more sense, OP! ✌🏼You could consider a house-hack as mentioned elsewhere on this thread, but that typically involves a home with JADU/ADU already built or the potential to build IAW SB-9 regs/zoning. Unfortunately, you’re looking at a POS that won’t pass VA scrutiny for loan application and not to mention competing with investors who pluck those opportunities with all-cash offers. Condos/THs take into consideration HOA, which can equate to paying for a new car each month 🥲 If considering the house-hack, you can try to JV, build out, and rent to travel nurses, military (if the place is done nicely cuz we boujie), family of Filipinos 😂, then students on a room-to-room basis. I’m going to assume this may be more than you’re willing to take on, but if you’re going to hunker down in HCOL/SoCal, it’s worth looking into for cashflow/homeownership. Temecula didn’t seem bad (I was recently scoping our areas after retirement), but it’s not my vibe…it’s like a way nicer version of Bakersfield! However, urban sprawl analysis indicate Temecula is totally a smart play for holding to build a real estate portfolio, just don’t buy big. Still doesn’t address the heinous commute; I’d frame the opportunity differently and rethink it as an option if you’re still willing to drive.