Military Housing - Buy a Home Using Your BAH

It's true: Military families sacrifice enough with the hectic lifestyle and financial hardship that sometimes accompanies a military career. There are far too many families in the armed forces who unknowingly sacrifice their financial future in addition to all the other sacrifices they make by not pursuing their dream of home ownership. In fact, many service members in the armed forces just don't realize their situation is not hopeless. There is a way to get out of the renting lifestyle and actually buy a home while in the military, and what's more - it can be paid for entirely by their Military Housing Allowance if the property BAH strategy is followed.

Of course, we all are aware that salaries in the military are not the best in the world. They are not competitive with the private sector on many levels - that's why they call it "service." As a results, it's often necessary to put all available resources to work on your behalf in order to qualify for a loan and make the payments. One of the best available resources is the BAH, which stands for the military's Basic Allowance for Housing, combined with a VA loan.

Use your BAH to buy a home

It is possible, especially in markets where real estate prices have eased significantly since the housing peak in 2006, to buy a home using your BAH. There are some basic rules that apply when you choose to receive a BAH housing allowance. The rules differ according to which branch of service you are in, but essentially, married personnel living off base are entitled to a housing allowance that goes a long way toward buying a home.

When military families are separated, or both spouses are members of the service, they may be able to qualify for even more of a loan to buy a house paid for by their BAH. While each branch of the military is slightly different in its rules, a real estate agent specializing in military relocation can help you navigate these rules and develop a strategy that is right for your family.

About BAH Rates

Basic Allowance for Housing rates fluctuate according to three main factors:

Dependent status
Pay grade
Location

If you know these two pieces of information, you can download the official military 2010 BAH rates table for free and determine how much money you have to apply toward qualifying for a VA home loand and making the monthly payments on it.