Buying a home can be an optimal choice for active-duty military. There are a number of benefits and advantages available for military personal for home loans. Before deciding on a home, however, it is important to know all the impacts that come with homeownership while on active duty. Here are some considerations that you should think about.
Where you will be stationed
One of the most important things you have to consider is your location. You could be deployed abroad at any time. In that case, you have to have a contingency plan for your home. You may want to consider renting out your home or having a relative stay at your residence. You will still have to pay the monthly mortgage on your home. Therefore, you will want to make sure that you can bring in some income from your home. You could consider using Airbnb to rent out your home. However, you will want to have a rental manager to handle the guest services while you are away. Perhaps the easiest way to handle your home while away is to have a relative stay at your residence. Your relative can help you pay the mortgage and maintain the property while you are away.
Where your home will be located
You will most likely purchase a home where you are stationed right now. However, you should consider which neighborhood to choose near the base. You are probably better off getting a house in a "military neighborhood" around the base. For instance, you can find homes for sale in Temecula if you are stationed at Camp Pendleton. Living in a military neighborhood tends to be safer which will make you feel at ease while you are on duty. It is recommended that you talk to other homeowners in your unit to see where they purchased their home.
Knowing your pay
One of the biggest benefits of the military is that you have a good idea of what your future salary will be during your active duty career. This will help you budget out your mortgage payments and your expenses. The military usually adds a cost of living increase to help keep in line with inflation. Therefore you can extrapolate what your salary will be over the long term. As an active-duty military service member, your payment will be more stable than working in the private sector. This will be advantageous when it comes to applying for a home mortgage loan.
Knowing your benefits
One of the biggest perks of being an active duty military member is the many benefits offered for homeownership. You can apply for a VA loan that offers more favorable terms than what you will get from other mortgage lenders. Some of the advantages of a VA loan include no down payment required in most cases, no monthly insurance premiums or PMI to pay, limitations on a buyer's closing cost, lower average interest rates, no-prepayment penalties, and two refinance options. It is recommended that you carefully look over all the benefits that the VA offers when it comes to their home loans.
Knowing your mortgage protection as an active duty military member
There may come a time when paying your mortgage becomes a challenge. The good news is that being ab active duty service member allows you some consumer protections. These consumer protections come from the Military Consumer Protection Act. In this legislation, you are protected from eviction from your home, a capped interest rate of 6%, and other homeowner protections. Additionally, the military offers a number of consultation services for those in need. While you may not have any challenges facing you at the moment, it is important to be prepared in worst-case scenarios.
Getting the most out of our home purchase
Being a member of the military can positively impact your ability to buy a home. You can get the VA loan that will offer you a number of advantages versus the civilian loan route. Also, consider what you will do if you are stationed abroad and will not be occupying your home. Finally, know your consumer protection rights as a member of the military. By having the right information, you will be a happy homeowner while on duty.
Katie earned a BA in English from WWU and loves to write. She also adores hiking in redwood forests and photography. She feels happiest around a campfire surrounded by friends and family.