Hi all,

I have a question that's been plaguing me for a few months now. I want to buy my first house in Reno, NV, but the cheapest homes I can find are somewhere in the low 200,000s. There are others that are cheaper but most look like they are about to fall apart any minute. Anyway, here's my question.

I am currently hovering at a 650 credit score and I am eligible for a VA loan. I make a little over $41,000 dollars a year after all benifits are paid to me. I can't come up with anything more than $6000 within the next few months for closing costs. Is there any possible way for this to work? The only other debt I have is my car payment of 336 a month. I have noticed that debt to income ratios are supposed to be at 36%, which would disqualify me instantly. Any thoughts?

You are good. VA loan limits may restrict you but if you tell me your county I will look it up for you.

You could do no money down at a great rate on FHA. It works like VA but there is no requirement in most cases for money down if the seller will allow concessions and authorize a down payment assistance company to contribute. The fee for this service "DOES NOT" have to be paid by the seller from their cash.
Based on your information I can tell you if putting 6k down or not would be a benefit in a reduced rate and payment. Less money financed is better as long as you still have funds left over for emergency.

VA does allow a great down payent loan against your pension, TSP I think. It is at around 5.25%. Up to 20% or more sometimes.

36% is fine.

I'm in Washoe County. I'm not really set on VA, I just was saying it is one of my options available to me. I will take whatever works really.

How much would I be looking at for emergency? I am willing to wait a few months to build up some money but I would like to get a home this year, which kind of limits my time limit to save.

1-Family 2-Family 3-Family 4-Family
WASHOE NEVADA $332,500 $374,500 $455,000 $525,000

Wow you are ok!

You have enough but I just do not want you to spend all your money. I would say a good rule is 6 months of reserves or 2 months most say. Just in case the unexpected happens.

Reserves as in what your living expenses are on a monthly basis. All of them.