For active-duty military members and their families, purchasing a family home is a complex and weighty decision. Following their Permanent Change of Station (PCS) move, the decision to buy a piece of the American dream they fought to protect could be affected by numerous financial and personal factors.
Here are some things military members and their families should consider before deciding to buy their next home:
Financial Considerations
#1 Cost and Monthly Payment
Among many active military families, there is a great debate regarding the cost of renting vs buying a home and paying the monthly mortgage. Rental costs and average home prices may vary greatly depending on where you are moving in the US.
#2 Market Prices
Aside from mortgage and down payment, military homebuyers must also consider other factors such as the average price within the local area, the rate of foreclosure, and the condition of the local market.
#3 Tax Benefits
When you own a home, you get to deduct the mortgage interest you pay on your loan from your taxes. This tax benefit lowers your monthly home expenses.
#4 Using Your Basic Allowance for Housing (BAH)
Many military members receive a monthly housing allowance, and what most of them don't know is that they can use this money to qualify for a home loan.
#5 Eligibility for a VA Home Loan
If you've chosen to finance your home using Veterans Affairs (VA) home loans, be aware of the eligibility requirements and how it may impact your future relocation.
#6 Expected Time in Current Duty Station
Because military members may be called upon to deploy or change duty stations at any moment, there should be a compelling reason to buy a home.
#7 Potential For Renting Or Selling The Property
There is a need to ensure that a purchased home is one that can be very marketable for the purposes of selling or renting.
Personal and Emotional Considerations
#8 Personal Concerns
Even before all financial considerations, you should know yourself whether you are ready to buy or not.
#9 Proximity to Family and Friends
Your family, friends, and loved ones are your support system.
#10 Retirement Considerations and Future Plans
If you are stationed in an area where you may soon want to retire, consider the state tax rates, treatment of military pay and benefits, and whether your potential home is near any military healthcare facilities.