I'm an Airman getting ready to go to my first duty station to Fort Meade, The BAH there is 2k a month. I've heard about different things about buying a house with the VA loan, and having roommates pay me monthly to help cover the price of the house. What would be the most financially beneficial option for me as someone with no dependents, and a 720+ credit score.
Best way to use BAH and VA loan
byu/ThatOneGuy84546 inMilitaryFinance
Posted by ThatOneGuy84546
6 Comments
Are you sure you are going to be getting bah and not in the dorms? Are you married or have dependents? If not, you will be in the dorms for about three years.
Fort Meade is a tricky area to buy a house in. It’s a very HCOL area. I would consider maybe getting an apartment with some roommates to split the rent, save some bah and focus on investing in TSP and Roth IRA.
I don’t know your current financial situation, but in that area it’s gonna cost 500-600k just to get in the door. And that may not even be a decent neighborhood. Again, it depends on a lot of factors. But just be cautious and don’t get in over your head if you choose to buy. Things can go south real quick in the real estate game if you’re not careful.
A good rule of thumb is to make damn sure you can afford that mortgage, plus living expenses if you have no roommates or renters. That may be hard to do if not impossible as lower enlisted with the current interest rates. A healthy emergency fund is a must too in my opinion.
You can’t afford the decent areas in the DMV or Bmore. Rent with friends
You need to be one of the people who finds someone needing a roommate
DC is way too expensive
Do not buy.
Rent first.
Split rent with another junior service member and pocket 30%+ of your BAH