Military personnel sacrifice enough with the meager financial reward that often accompanies a career in the U.S. armed forces. Too many families cut corners on their financial future by not understanding the rewards of homeownership. Understanding the rules for military housing doesn't have to be confusing. Most service members do not realize that there is a way to abandon the renter mentality and actually own a home paid for entirely or largely by their BAH.
It's well known that salaries in the service are not the best in the world. It's usually necessary to take advantage of all available tricks at your disposal to purchase a home. One of the best resources is the BAH, combined with a VA loan.
It is possible, particularly in parts of the country where real estate values have come down significantly since peak real estate prices in 2006, to buy a home using your BAH. There are some basic rules that apply when you choose to receive a Basic Allowance for Housing. The regulations differ according to which branch of service you are a member of, but basically, married military personnel living off base are entitled to a housing allowance that goes a long way toward buying a house.
When military spouses are separated, or both spouses are members of the military, they may qualify to get a loan paid for by their housing allowance. While each branch of the military is slightly different in its regulations and their application, a real estate agent who specializes in providing military relocation services can help you navigate the regulations and formulate an approach that fits your family.
BAH rates change according to three primary factors:
- Your military pay grade
- What base you're one
- Dependents status
With these three pieces of information, you can get the official BAH rates for free and you'll know how much money you can count on each month to qualify for a VA home loan.
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