Being a part of a military family means you may not have a permanent address for some time. It’s common to receive orders to move to another station even if you’ve just settled into a house and neighborhood you love.
To make the experience easier, we share some tips on buying and selling your home as a military family.
When you’re an active service member, you’ll receive a BAH (Basic Allowance for Housing), whether renting or buying. The amount depends on your pay grade, where you’re living, and your dependency status.
Buying a home is a good option if you want lower monthly payments than renting, but if you think you’ll get transferred in a short time, you’ll probably want to hold off a bit. The reason is that when you purchase a property, there are expenses that come with it –even if you are buying with a VA loan.
That means that it will take some time to recoup those costs. Selling too soon will end up costing. Although the idea timeframe can vary, generally speaking, it will take about 3-5 years to recoup purchase costs when buying a home with a VA loan.
You can use this general guideline and your deployment schedule to determine whether buying a home now is a good move.
If you’ve decided to buy a home, you can apply for a VA loan which offers no down payment and no PMI or private mortgage insurance payments. A VA loan can be a good alternative to a conventional loan if you don't have enough for a down payment.
If you get your transfer orders and no one is buying your home, you can always get it rented out and eventually earn residual income once your mortgage is fully paid.
This can also work out in your favor if you believe you’ll be transferred back to your original location.
The only problem you may encounter in this scenario is dealing with problematic renters who live hundreds of miles away. If you are ok with spending on property management, you can always hire firms that can do the job for you.
As a military landlord, you can also offer a rent-to-own proposal to your tenants if you decide to sell later.
Buying and selling a home for military families who are constantly moving can be a hassle. The good news is that you can apply the things we shared to make the process less stressful.
If you need assistance, contact one of our loan experts for advice.
We've been helping homowners understand the smartest way to finance their homes since 1998. And we love doing it!
Personal NMLS: 326032
Company NMLS: 2003179
19776 Waterview Ln.
Huntington Beach, CA 92648
Phone: (714) 743-9909
Gregg Knight, Inc. strives to ensure that its services are accessible to people with disabilities. Gregg Knight, Inc. has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
Gregg Knight, Inc. makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows greggknight.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
Gregg Knight, Inc. accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
Gregg Knight, Inc. continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on Gregg Knight, Inc. website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on Gregg Knight, Inc. website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: email@example.com