Being in the service and buying or selling a home can bring it's own set of challenges. I know. I was a military brat for my first 20 years and was privy to my father's dilemmas during his 36 year career. I've also helped military and federal employees into their first homes and handled the sale of their home when they were rotating out of San Diego. I am here to help you every step of the way.
If you're new to Southern California and have been looking at listings on the Internet, you've probably been going through some form of sticker shock. You're not the only one. Even those of us who've lived here for some time are amazed at the rapid rise of home prices in the last several years. Those people who have owned a home are smiling at the amount of equity they've accumulated.
Now you're probably wondering if you can even afford a home and what type of loan will help you the most. There are lots of calculators for this on the Internet including my site right here. If you don't like crunching your own numbers STOP RIGHT HERE and GIVE ME A CALL. However, if you do like numbers the following explainations below will calculate what the maximum payment allowed would be for 3 different loan types, FHA, VA and Conventional. The formula is the same for each. Only the "factor/multiplier" changes. After doing the calculation you might think some of the numbers are a little high for your personal situation, but remember these are the max numbers a lender will accept.
VA - Take your total income before taxes, including any extra pay you currently receive like BAH, hazard, sub etc. ... now multiply that number by .41. Now add up all your MINIMUM required payments on credit cards, car payments, court ordered alimony and secured loans and subtract it from your first answer. Viola! That is the max monthly payment VA will allow. (Total Pre-Tax Income X factor) - debt.
FHA - FHA is also a government insured loan like VA. To calculate this loan type do the same math but substitute the factor .41 for .45. Notice how much more they will allow for a payment.
Conventional - There are lots of different loan types here, but generally the number to use in the equation can be anywhere from .42 to .55. Try it at .55 and see what you get.
If you read this page before looking at my Buyers page, click here now to get some more insight. If you are selling your home, the military may be providing you with a relocation service like Cendant or someone else. You can request a specific Realtor to work with your Relo service. You can feel comfortable referring me. I have the knowledge and experience to make it a smooth transaction.
Now it's time to contact me or my wife Lori. We can help you translate that number into an actual house price, tell you what your tax break will be and help you find your new home.