We're thinking about buying a $250K house.. we have $60K saved for down paymnt?

We also have VA benefits... do we go conventional or VA? Problem is.. we will only be in area for 3 years. What say you.. I've heard that we should rent.. but we're having a hard time finding a place to rent with our requirements (square footage & fenced yard). I'm at the point where if we break even after 3 years we'd be ecstatic

Oh, we have pets... hard to find place to rent that accepts pets & those that do request big time pet deposits

In 3 years the market should not be such a problem, so selling then probably won't hurt you. Go with whoever offers the best mortgage deal--definitely be very cautious over prepayment penalties because they can bite you. What if you are there longer? What if you want to pay the house off early, etc. Why not keep the option open.
I'd still get a fixed rate mortgage--you can see why and again--you can not know for a fact you won't want to stay on. (I understand military and that's part of why I say you can't know.)
Hopefully you have a buyer's agent (free to you) and they may have a mortgage broker who can get you a great deal--shop for the house AND the mortgage. In a buyer's market, you should be able to get a heck of a deal. As you can put down at least 20%, no PMI, which is a plus.
Make sure you have really good homeowner's insurance (as well as auto if you have one, health, etc) so you can rest assured you'll make your monthly expenses. Then strike a good deal and enjoy--you probably will turn a profit on this deal.

Good luck!

eh breaking even doesnt work for me, think about it? gl. i have a home on an acre and qtr just built 3 yrs ago in sw florida if interested lol.

You haven't said where you're looking to buy a home, and that's a big part of this question. You can use a VA loan, but there's really not much reason for it unless the loan interest rate is much lower than what you can get from a conventional loan (which I don't believe is the case right now, see a mortgage lender).

As for being in the area for only 3 years, see a Realtor who specializes in Buyers - an ABR or Accredited Buyer's Representative - and ask what the market is trending towards. In my area of northern Colorado, the next 3 years look to be very good, so it should be a no brainer to buy. Plus, in most of the country, it's a buyer's market, so there are some good deals to have.

As for breaking even, don't forget about the tax write-offs you get if you buy. The interest deduction alone could be worth up to $6,000 per year of savings in taxes. That's a pretty good chunk of change to factor into your "breaking even" scenario.

Renting is just throwing away your money, you have no tax benefit whatsoever and the landlord could end up charging you tons of money at the end for damages (which could be wear & tear, but there are unscrupulous landlords out there - just look at some of the questions here).

I'd be happy to answer any other questions for you, but I'd say the best bet is to find a good Realtor in the area you're moving to and ask him/her to recommend a good lender, too.

Best of luck to you!

You don't really need to do a down payment. These days oit possible to get the house without one. However it will lower you montly mortage payment if thats something your interested in. 250K for a house is a lot for just 3 years to be there. If possible find something cheaper and use the 60K you have to fix it up and turn a profit on it. Also keep in mind that the market for homes, is really bad and people are having a really hard time selling anything. Not any guarantees that it will improve in 3 yrs. Maybe renting is a wiser choice for your amount of time to stay in the house. Thats a lot of money to be going in on for such a short time.

It definitely is a buyers market, but you are going to want to speak with a local Realtor where you are looking to buy. Ask to see the market analysis of the town and surrounding towns to see if sales and prices have gone up or down in those areas. The market should start to adjust its' self hopefully by the end of next year, so you will start to see appreciation in house values again.

Dependent on your credit would be the main factor of going with a VA or conventional loan. A conventional loan is going to have more attractive terms.

If you have any other questions, feel free to contact me.
I am a loan officer and a licensed Realtor
danadlfinger@yahoo.com

With 60k down there will be many options for financing your. Check on the VA but it probably won't be your best deal. You said you will move in three years so I will assume you are active duty. If so, you should check USAA.

If you don't have a need for cash and put all the money down that will save you money in the long run. You plan on being in the home for only three years so the long run may not be an issue for you. If braking even is a concern the more money you put down the easier it will be to get out of the home.