What advice to you have for a first-time homebuyer in the military? I was thinking about using the VA home loan and have been saving for a down payment, but I don’t really plan on buying immediately. I was thinking sometime in the next five years. I do plan on using resources available on base for homebuying classes and financial counselors, but I’d like to know what people’s personal experience has been with buying a home in the military. Any advice is really appreciated!
First time home buying advice on active duty
byu/Distinct-Stuff-1772 inMilitaryFinance
Posted by Distinct-Stuff-1772
2 Comments
VA loan sweet, I’ve used it three times. I’d wait to buy until the holidays, that’s when houses are the cheapest as sellers get desperate.
Before you buy a house that will probably turn into a rental property when the military moves you make sure you have a large nest egg for maintenance issues, tenant issues etc.
Frankly if you do the math unless you hit timing perfectly, you will usually be lucky to break even after 3-5 years at a duty station. Probably better renting and trying to pocket a little BAH than buying.
You will gain on appreciation, but you will have the initial cost to purchase (closing costs and realtor fees) and then you have to hope home prices have gone up more than the initial costs, any maintenance issues, and all of the closing costs on the back end.
I have done it on multiple duty stations, but timing was good and with the latest run up in home prices since COVID and interest rates I would not try it now or in the near future (unless you get stationed somewhere you want to end up living in OR know you want to become a real estate investor and if that is the case look at duplex-quadplexes for better scales of economy).