What Can You Buy With a VA Loan?
The VA loan is an incredibly valuable tool for military and veteran home buyers. Rarely does a buyer have the chance to own a home without saving up a cash down payment! But if you’ve served in the military, either currently or in the past, you likely have access to this amazing benefit that helps you build wealth while you serve or because you have served.
Active Duty Budgeting
When moving to a new duty station it’s helpful to know your BAH rate (that’s Basic Allowance for Housing, for you non-military types) so you can set your budget. You can look up the BAH for your new duty station here. Hint: Be sure to use the zip code of your new duty station, not the town where you want to live. The BAH can be considered your monthly payment amount - either in rent or toward your mortgage. You can decide if you want to include your utility payments in that number and spend less than BAH on rent or mortgage, or you can chip in some of your regular pay and increase your budget. I often see single people, childless couples, or dual-military couples opt to spend less than BAH on housing, while I often see large families who need more space spend more than the BAH.
What Can You Buy With a VA Loan?
Check out the sample table below for Ft. Meade, Maryland, which shows the price of home or condo that each pay grade could likely afford if they use their BAH to buy a home. Note also, in that column on the right, how much money is thrown away in rent over a three-year tour if you choose to rent. That’s a significant chunk of change no matter who you are!
Ft. Meade, MD BAH Rate 2020
VA Loan Estimator Tool
Here’s another handy tool. While I have not worked with their loan department, US Bank has a great VA loan estimator tool on their website. Understand, though, if you click on the “Prequalify” button, you’re bound to get some sales calls.
Ask a Veteran!
If you want to know more about how to use your VA loan benefit, ask me! I'm not only a Veteran who has used a VA loan, I’ve helped over 100 clients consider the use of their VA benefits also. I am well connected with lenders who are pros at providing VA loans, and happy to share my resources.