Stop renting and buy a home using your military housing allowance

Military service members sacrifice enough with the hectic lifestyle that often accompanies a career in the U.S. armed forces. Too many military families cut corners on their financial future by not choosing to buy a home. Understanding the rules for military housing doesn't have to be confusing. A majority of members of the armed forces do not realize that there is a technique to abandon the renter mentality and actually own a home paid for by their BAH.

We all know that salaries in the U.S. military are not the best in the world. It's often essential to take advantage of all available resources to qualify for a loan. One of the best available resources is the BAH, which stands for the military's Basic Allowance for Housing, paired up with a V.A. loan.

It is possible, particularly in markets where home values have eased significantly since peak real estate prices in 2006, to buy a house using your Basic Allowance for Housing. There are some specific military regulations that apply when you choose to receive a Basic Allowance for Housing. The regulations change depending upon which military branch you are a member of, but essentially, married personnel living in off-base housing are able to get a housing reimbursement that goes a long way toward buying a house.

When spouses in the military are separated, or both spouses are members of the military, they may qualify for even more of a loan to buy a house paid for by their BAH. While each branch of service is a little different in its regulations and their application, an agent who specializes in military relocation can help you navigate the regulations and formulate a strategy that is right for your family.

Military housing allowance rates are assigned differently according to three primary factors:

• Pay grade
• Your location
• Dependents status

If you know these three pieces of information, you can look up your official BAH rates for free and you'll know how much money you'll have to apply toward qualifying for a VA loan.

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