Randy Pomfrey

I agree with Tracy. Find a local lender, probably not your bank, someone that specializes in home loans. Because while you may be able to get a loan, the rate might be crippling. Doing a few things to fix your credit beforehand can help. Plus the VA does help! thanks for your service!!

Unfortunately you can't borrow money to borrow money. Meaning you can't borrow money from one source to get a loan from another source. It's complicated, but it raises your debt ratios and they will know it. They see everything. Today's lenders have a ton of resources available to them to help you when you don't have 20%. Don't wait until you save 20%. The few bucks you will save on Mortgage Insurance (the "tax" you mentioned) will be undone by the thousands you will have missed out on by waiting years to buy the home. I have connections in your area, so let me know if you want a trusted referral :)

Keep in mind there are some other great financial advantages to buying, such as: your home will grow equity over time, you'll qualify for tax deductions, and your profit will be tax free. You won't get any of that with renting. Without knowing your specifics, I would recommend you get a starter home. My first was 2 bed 2 bath condo in the middle of nowhere. You've just gotta start. Your home will actually be the vehicle to help you save money faster than you ever could on your own.