Using a VA Loan Multiple Times to Purchase Homes

I want to talk to you about something today that's very, very sensitive and I know that, but we're going to go into it together. Stick with me here. I think you'll see some value in it. The premise is this: so many headlines are out there right now saying home prices have gone up and interest rates are going up, and it's both true. And so therefore, so many people are being just completely priced out of this housing market, sort of.

Let me tell you a story of two different people I've spoken to just recently, both happen to be single moms. The type you really want to help into a house because it's going to help change their whole future, right? Their whole financial future, at least.

And it helps the kids as well, having their own backyard, their own play space, their own space to be a kid in as opposed to an apartment. Hey guys, this is Jim Duffy with Alcova Mortgage. It's interesting, very interesting because they both make about the same money.

They make good money, $70,000 a year, 72,000, somewhere in there. One qualified for the home that she really wanted. $360,000 was the purchase price, but the difference was this basically. It's interesting because the other single mom, I said, what about getting rid of, and I know this is sensitive and here's the sensitive topic.

What about getting rid of that Jeep that you love, but you just bought, is it possible to do that? And I know this isn't a Jeep, but it's a dream car for a lot of people and a lot of people have your dream car and I totally get it. And I want you to have your dream car, but here's the difference. Again, both single moms, both made about 70 some thousand dollars per year.

The only difference was a $672 a month car payment as opposed to no car payment. Now the Jeep is an awesome car. The no car payment, not so awesome a car, but it got them where they want to go. Here's the difference: the mom with the car payment qualified for about a $290,000 loan making the same income. The one who didn't have a car payment, because that doesn't exist in the debt ratio, qualifies for about a $400,000 home.

Oddly enough, both we're looking for about a $360,000 purchase. The one without the car payment qualifies. So the big difference is the one single mom that we were talking to has the Jeep that she absolutely loves, it's an odd time right now because cars tend to depreciate. They go down in value, right? The odd time is her Jeep is actually appreciated in value.

You can sell a used car right now for more than you paid for it oftentimes. And so she could actually get out of it without owing the bank anything else. I know it's an odd time, but it's a great time to take this into account and say, what is more important? Because a home appreciates in value, right? It goes up in value.

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So it's the decision sometimes. I know it's a tough decision, I know that we love our cars, we're Americans, right? But don't we love our houses more and don't we love building our net worth more? Wouldn't you love to be in the house that is comfortable for you and your family, as opposed to when you're just. Stretching to get into, but doesn't really meet the family's needs? That's my point, the decision is yours, but I'm here to just to help guide in the options. Hope that helps.