12. PCS Investing - The VA Home Loan Is A Moral Hazard - a podcast by John Payne

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So I’m going to be the guy that says it, and likely you’ll think I’m crazy for saying it.
The VA loan for home purchasing is a moral hazard… so is a FHA Loan
I know what you’re thinking, how can a normal person afford a house at these prices without saving 20% down…
If the government tells you its good for you and provides a tax incentive, just assume that it can benefit you, but it’s meant to benefit the lobbyists and industries that asked for the tax code to be written in a way. The banks make a killing off of separating you from your earned income. The government gets a run at your paycheck first, then your bank gets a run at your housing costs (whether you’re renting or not) and makes money every month on mortgage payments but incentives you to become an owner (as many people as possible with programs and tax incentives), but many of those incentives you’ll only see as adjusted taxes at the end of the year. Which when comparing yourself to the Jones next door that are renting….SEEMS like a great thing in comparison…but it’s a false comparison because you’re both getting screwed by the banks and the government that have incentivized spending/borrowing or saving/investing.
YES, YOU HAVE AGENCY TO CHOOSE SOMETHING DIFFERENT AND FIND A WAY THAT DOESN’T KEEP YOU IN THE TURMOIL OF DEBT but it will directly go against the incentives that have been laid out for you.
Some may say that at least I’m gaining equity, but remember you are relying ON A MANIPULATED market to determine this unless you are willingly running the numbers as an investor, making a solid plan, and accepting the understood & unknowable RISK.
Just like your retirement and your medical benefits as a veteran or retiree…. YOU DON”T CONTROL THAT STREAM of income NOR the benefits you are allowed to get
But because you thought it would be there…. YOU sacrificed good decisions yesterday for the promises they gave you for tomorrow…..and the question is, how well do you think the government holds its financial promises?
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