Tips For Buying And Keeping Your Home In The Military

Guest Writer Chase Porter

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It is not uncommon for service members to consider purchasing a home, especially if they are starting a family and looking for stability and long-term investment. But, while the process of doing so is by no means easy, it can be even more complicated for military members due to the nature of their work. So, to help shed some light on the subject, we're going to explore what buying and keeping your home in the military entails.
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Before buying your home
For most people, a home is the most significant investment they are going to make. Unless you also plan on buying a business, your home will be your most considerable expense. So, it makes sense that you research it as much as possible before you start looking.

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Buying and keeping your home in the military should never be a spur-of-the-moment decision.

​Every would-be homeowner needs to take careful stock of their life in order to see whether buying a home is the right choice. And, as a service member, there are certain extra aspects that you need to consider.

Consider your finances
First and foremost, you need to analyze your budget and your finances. Financial advisors recommend that you spend no more than 28% income on your housing cost. This included mortgage, property taxes, and insurance. While you may hear otherwise, we recommend that you keep this number in mind when deciding whether or not you can afford a home.

VA loan
Luckily, there are upsides to buying a home as a service member. One of the major ones is that you may be eligible for a VA loan. With it, you can buy your first home at competitive rates with no down payments, which makes it much easier to afford a new home. But, to qualify for a VA loan, you need to meet one of the following qualifications:

• You are a veteran with an honorable discharge and who served 24 continuous months of active duty.
• You are an active service member who has served 90 continuous days.
• You're a member of the National Guard who has served for 90 continuous days or got discharged honorably or retired after six months of service.
• You're a member of the Reserve who has served for 90 continuous days or got discharged honorably or retired after six months of service.
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If you believe that you are eligible, you can apply for the Certificate of Eligibility at VA. If you manage to get a VA loan, know it will be your best available financing option. You'll need to pay a funding fee for the loan, which ranges between 2.15 and 2.40 of the total loan.

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All things considered, a VA loan is your best financing option

Finding the right realtor
As a service member, you probably don't have much time to find a home to purchase in the new area. So, you must find a good realtor to help you out. In most cases, you want to focus on a realtor that has previous experience with the military staff. They can give you helpful advice and guide you through the purchase process, which can often be tricky. Delays and drawn-out negotiations are just some of the things that service members don't have time to tackle. So, you ideally want a realtor that is:

• Communicative.
• Experienced.
• Has a good record of previous sales.
• Has a pleasant personality.
• Understands your needs and requirements as a service member.
• Understand the local market where you plan on buying.

While it may take you a while to find a good realtor, we suggest that you take your time as doing so is well worth it.

Keeping your home in the military
Besides financing and finding a real estate agent, you need to ask yourself one crucial question. Why do you want to own a home as a service member? In most cases, military personnel has to relocate frequently. And while you can create a military moving checklist and organize the process of relocation so that it is relatively easy, it doesn't make much sense to buy a home. In essence, purchasing a house only makes sense if you plan to:

• Retire soon.
• Rent out your home.
• Resell it for a profit.
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Renting out your home
Renting out your home might seem like a great idea. You get tax benefits, and you yield some income. After a couple of years, you can move back into your home and enjoy your retirement. Great, right?

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Before you become a landlord, make sure that you know what your responsibilities are.

While this sounds like a great idea, know that it comes with its own set of troubles. First off, being a landlord comes with an inherent cost. You are expected to repair and maintain your property, even while you have tenants. Furthermore, you need to ensure that you find reliable tenants who won't wreck your home. All of this takes time and can often be quite stressful. You can look to outsource the landlord aspect, but this takes away from your rent profit.

Reselling
Another option is to resell your home before relocating to a new area. If you can make a profit while doing so, this can be a good idea. But, this endeavor is easier said than done. First, you need to consider the resale value of your home and how likely it is to increase. Sure, some upgrades can be cost-effective. But, tackling them takes time and energy, which you probably won't have during your service. Besides this, the process of selling your home can take longer than you'd hope. This might lead you to lack funds for a new home while waiting for revenue from the current one.

Final thoughts on buying and keeping your home in the military
Buying and keeping your home in the military can be a viable idea. But, you must take careful stock of your life, explore your financing options, and find real estate agents. Unless you are truly adamant about purchasing a home, we recommend that you consider renting. It could be a much more viable solution for young service members.

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Author bio:
Chase Porter is a former real estate agent and a freelance contractor. Ever since he got married, he has focused on raising his daughters and writing helpful articles about real estate and homeownership.