Military member 1st time home buyer question.

[Anonymous]

I'm currently active duty navy and I bring in around $4500 a month. I have been in the navy for 6 years. My credit scores are 801, 786, 730 and I have no collection and I have paid off all of my credit cards. The only thing I have on my credit report is 2 car notes that runs me around $700 a month.  I just got orders to Florida and I'm planning on buying my first home. I was wondering do any one know if there are any first time home buyers programs that I qualify for. I went down there to visit the area and saw a couple of homes I was interested in. So what is the first step to take in order to buying a home. Do I need to get a agent, mortgage broker, go directly to the bank I want the loan through, call the number from the homes for sale. This is a big decision and I'm very lost and don't know the first step in this process. So please help because I don't wanna get ripped off.

[ShanetheMortgageMan]

Are you planning on staying in Florida for awhile?  I would caution about buying there now, as if you do, you likely will have to hold onto it for ~5 years in order to ride out the "down market" it's currently in.  I know being in the Navy that sometimes you are moved around, so just something to think about before buying a permanent residence in an ailing real estate market.

Since you are in the Navy I'd definitely check out a VA Mortgage.  VA can do 100% financing without monthly mortgage insurance, which is something that conforming & FHA will have in the payment.  Conforming loan programs require 5% down in Florida (solely because it's in a declining market), and FHA requires 3% down (which can be from down payment assistance such as www.getdownpayment.com).

Since you already know the price range of homes you are interested in I'd consult with a mortgage broker & mortgage lender (Navy FCU is a good one for you) on what options you'd have.  If you want to get preliminary numbers from this website feel free to share what price range you are looking in, where in Florida you are looking, and if your car payments have 10 months or less on them.

After you have your financing in place I'd get with a real estate agent to scope out potential homes.  You do not pay your real estate agent, the seller does.  The real estate agent's commission is built into the sales price.  You will definitely want to have your own real estate agent and not use the one that represents the seller (even though that is a possibility), the reason being is you want a real estate agent who solely has your interest in mind... not trying to represent both sides of the coin.  These are often referred to as "buyer's agents", but it doesn't mean that someone who doesn't specify they are a "buyer's agent" won't do a good job for you either.  Do you have friends/family in the area you are buying in?  If so, I'd ask them if they have recommendations/referrals for a good real estate agent. 

[Anonymous]

Many, many military choose 'home' to be states with no income tax...if you buy near a base and then have to PCS it can be rented to another military family (BTDT).

Yes, you will have to hold the proerty beeofre you will see an increase in equity.However - BAH is not taxable and if you can keep within your BAH amount you will fare well long-term.

[Anonymous]

Most active duty military do not need DP assistance as a VA loan guarantees 100% of the loan up to a certain amount.  Be sure to look into this.  Because of this, if you are using VA you most likely will not be approved for DP assistance.

[Anonymous]

Wantd to add that if you use your VA benefit, don't be suckered into PMI.  Your loan is guaranteed and there is no need for it.  EVEN for a first time homebuyer.