Rent vs. Own - Another Reason for a VA Loan
Buying beats renting in many spots across the U.S. See why zero-down VA loans combined with low rates make now a great time for veterans to buy almost anywhere.
Veterans already have many great reasons to use their zero-down VA loan benefits. But new rent vs. own data makes buying a home with a VA loan even more attractive. Now, it's cheaper to own than rent in all 100 U.S. metro areas referenced in top home price indexes. According to the Trulia Rent vs. Buy Report – Summer 2012, owning a home is 24% to 70% cheaper than renting one.
No matter where veterans live, it's likely the average mortgage payment is less than the average rent for a comparable property. We've created a table to show you just how affordable it is to buy a home in metro areas near major military bases in California, Texas and Florida – three states well populated by veterans:
|
Metro Area |
House Payment |
Rent Payment |
Owner Savings $ |
Owner Savings % |
|
Fresno, CA |
$672 |
$1,333 |
$661 |
50% |
|
Los Angeles, CA |
$1,379 |
$2,020 |
$641 |
32% |
|
Oakland, CA |
$1,331 |
$2,321 |
$990 |
43% |
|
Orange County, CA |
$1,610 |
$2,423 |
$813 |
34% |
|
Riverside-San Bernardino, CA |
$853 |
$1,495 |
$642 |
43% |
|
Sacramento, CA |
$898 |
$1474 |
$575 |
39% |
|
San Diego, CA |
$1,314 |
$1,981 |
$667 |
34% |
|
San Francisco, CA |
$2,327 |
$3,226 |
$899 |
28% |
|
San Jose, CA |
$1,819 |
$2,646 |
$827 |
31% |
|
Ventura County, CA |
$1,516 |
$2,274 |
$759 |
33% |
|
Austin, TX |
$938 |
$1,545 |
$607 |
39% |
|
Dallas, TX |
$812 |
$1,501 |
$689 |
46% |
|
El Paso, TX |
$719 |
$1,202 |
$483 |
40% |
|
Fort Worth, TX |
$716 |
$1,360 |
$644 |
47% |
|
Houston, TX |
$850 |
$1,726 |
$876 |
51% |
|
San Antonio, TX |
$809 |
$1,370 |
$562 |
41% |
|
Jacksonville, FL |
$642 |
$1,355 |
$713 |
53% |
|
Miami, FL |
$1,032 |
$2,003 |
$971 |
48% |
|
Orlando, FL |
$607 |
$1,345 |
$738 |
55% |
|
Palm Bay-Melbourne-Titusville, FL |
$576 |
$1,133 |
$557 |
49% |
|
Tampa-St. Petersburg, FL |
$594 |
$1,393 |
$799 |
57% |
|
West Palm Beach, FL |
$723 |
$1,764 |
$1,041 |
59% |
VA Loans Make Buying vs. Renting an Easy Decision
Affordable home prices, low mortgage rates (around 3.5% to date) and the benefits of VA loans, make buying vs. renting an easy choice for many VA-eligible borrowers. VA loan rates are typically in-line with the national average, but qualifying standards for VA loans can be more relaxed than conventional loans. More generous requirements for debt-to-income (DTI), residual income and credit scores as set by the VA (lenders guidelines may vary) all help make VA loans a solid mortgage option. The VA backing allows lenders to offer zero down purchase loans up to $417,000. And, VA borrowers never pay private mortgage insurance.
If you've been contemplating trading your rent payment for a house payment, contact a dedicated VA lender today.
Table data courtesy of Trulia
Related Topics |
VA Loan Home Ownership Rental Property |
Contributor
About
VA Specialty Lender
iFreedom Direct®, a top VA-approved lender, has served America's brave men and women by providing quality VA loans since 1996. These zero-to-low down mortgages, backed in part by the Department of Veteran Affairs, help eligible borrowers purchase and refinance homes at competitive interest rates. Pre-qualify at www.directvaloans.com or 800-211-9024.
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