Question

Curious on peoples' thoughts: We currently rent our house from my stepmom and dad (very reasonable rent - we severely underpay). My husband is deployed and when he comes home, we want to buy our first home together. Our options are to either buy the house we're currently renting - about $50K owed on it, 100+ years old, in an okay but not ideal area - or to buy elsewhere. We, of course, want a quieter street/nicer neighborhood and good school system for our daughter when the time comes (she's 3). Homes in such areas where we love are anywhere between $160, 000-250, 000. I'm not sure what we'd get approved for in regard to a mortgage, as we want to wait when my husband gets home to look into it. What would your preference be? Buy the house we're already in and put in the time and money to make it what we want OR buy a house in a nicer neighborhood and make it what we want, knowing it may take longer to do so (or not, depending on what we could get) because we'd take on a larger mortgage? We'd be taking out a VA Loan, if that makes a difference. :)

Answer 1

Are you wanting to find your forever home? If yes, take advantage of the low rent and start saving to buy elsewhere. I can see staying and fixing your current house if you loved the area but sounds like you don’t.  

Answer 2

I’d take that $50K home in a heartbeat! You can always do upgrades. $50k home you could pay that off in no time and have no mortgage.  

Answer 3

Personally I’d ask if the monthly rent payments you are making now can start to be considered as a down payment and keep the house you are in but if you’d be that unhappy in your area then the other option. But for me I’d stay put Best of luck to you! Thank your husband for his service please!  

Answer 4

Since he is in the military, how likely are you to stay in the area? I ask, because if you are there long term, hell go with the cheaper home and apply sweat equity. If you are likely to move in a couple years, its easier to rent a family home with good schools.  

Answer 5

I do not recommend buying while in the military

Answer 6

Honestly if I'm BUYING a house, I'd want one I'm happy with. With the neighborhood and area concern you're talking about. Also definitely buy a house only if you intend to come back to it when he gets out. Live on base to save money too when you're away from it

Answer 7

Contact the VA now and get the ball rolling they are amazing to work with and will gather the info and let you know what you qualify for and that way you know how to proceed

Answer 8

Is it an option to buy the one you are in and fix it up? Then sell it down the road and you will have quite a bit of equity in it to put down on a different house in the neighborhood you want.  

Answer 9

Where would that house be?  

Answer 10

I wouldn’t buy until your husband retires from the military. You could end up overseas. My husband was in the Air Force & we moved overseas twice! We just rented or lived on base until he retired. Then we bought our forever home in a great neighborhood!  

Answer 11

With the VA Loan, the house has to pass certain requirements to be approved. I'm not sure what they all are because we've only bought new homes so they all passed. Just something to think about! The VA Loan will let you buy with $0 down but there is a funding fee that you can pay OOP or wrap into your loan amount.  

Answer 12

Girl, I would buy that current home for $50k in a heartbeat as a starter home. Once you have 15- 20% so no PMI saved you can consider a different location for next home and rent the First our for passive income. Make sure to check out your VA/ active military benefits! Congrats!  

Answer 13

I'm in agreement with the wait till retirement tribe. We have been in 24 years now. Bought back in 06 and ended up moving/renting it out. We lost our a$$ in damages, bad tenants and shady management companies. Finally got rid of it in 2015 (and lost another 10k just to get out from under it). We are now in his 12 months before retirement phase, and are looking to buy for our retirement home. I wish someone would have talked me out of buying back then, I feel we would be so much further ahead now!