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Hi Tim,

I'm in the military and ideally I will live in the house for at least three years, after I transfer I would like to rent the house.
What would be the best way to finance?
What kind of downpayment should I put down?

Do you qualify for VA financing? If so, you can get FRMs and ARMs that are pretty much the ongoing deal of the century (at least they are right now.)

Would a combo loan be advisable?

If you do NOT qualify for the VA, then sure, a combo to avoid PMI is generally far better to taking the PMI.

How do you figure the payment on a 5/1 type loan?

Same as for any other 30 year loan (or 40 year if you were to take that option.) Plug you data into a loan calculator, and it will spit out your monthly amortized payments.

Of course, if you select "interest only" then the calculation is exponentially simpler;
Principal X Interest Rate / 12 months.

Is there a book or a website I should look at to get this type of info?

Yer looking at it RIGHT HERE mah friend! Damn near everything that COULD be imagined in homebuying questions has been asked here... and then either answered, or heavily argued about until SEVERAL workable answers emerged.

Seriously, there are some good books to read... an excellent starter would be Homebuying for Dummies.

I have about 6 months to figure what I want to do and how to go about it.

That's just about enough time to hunker down, go through the old FAQ's (linked in the upper right corner of the page your looking at,) and then supplement further questions with the search function on this message board.

PLUS, if you get LAZY (which is totally acceptable,) you can just post your questions here, and the gang will jump in to help you (and all other lurkers) out!

Dave Donhoff
National Mortgage Broker/Banker
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