VA Loan Not Worth It

Jon is thinking about going for a VA loan, but Dave thinks he's better off going some other route to getting a mortgage and owning a home.

QUESTION: Jon, calling from Kuwait, is working on his debt snowball. There are some good deals on mortgages out there. He knows he’s still a while away from that, but his home state gives VA benefits on that. Should he go that route?

ANSWER: The Veterans Administration has a series of benefits available to people who have served, but as far as the home ownership benefit, you qualify for a veterans loan, and I wouldn’t fool with that, because you can get a Fannie Mae loan cheaper. The only benefit that a VA home loan has is that you can get nothing down, and I call that a danger. I don’t want to do nothing down, I want you to get your act together, get out of debt and save an emergency fund, and then save up a big down payment for a house.