Buying a home is a major life decision, and the stress of that decision can be exaggerated by the uncertainty that comes with a life dedicated to service in the military. We have highlighted three special areas of concern for military families considering a real estate purchase.
As a member of the armed forces, your day-to-day life is dictated by a strict set of regulations. You probably want to spend your off-duty hours enjoying your freedom to act as you wish. If you have a large dog, two cats or more, several children, or smoke cigarettes, you may run into major difficulty finding a landlord that will rent to you and your family. Even if you do find a rental, an exorbitant security deposit may be required, and you’ll have to remain vigilant to ensure that the deposit isn’t lost. Homeownership is the only option that lets you live life as you choose in the space you choose.
Nothing Ventured; Nothing Gained
The sacrifices made by military families are not limited to the dangers encountered in the line of duty. Permanent Change of Station orders can arrive any time, with or without advance warning. As a renter, this can create an unfortunate need to break a long-term lease. But that discomfort can be compounded when a newly purchased home suddenly has to be placed on the market. And if you can’t sell your property before relocating, then you may have to travel across the country (or an ocean) multiple times to finalize the sale of what you thought was your dream home. With all those risks being taken into account, if you are in a financial position to build equity with your Basic Allowance for Housing, rather than spend cash you’ll never get back – buying a home can be a great investment. Property often rises in value when evaluated long-term, and there are many tools online for military families to re-sell their homes to other service members.
VA Home Loans
Veterans Affairs Mortgages, commonly known as VA Loans, are one of the few real estate financing options for buyers who cannot afford or do not wish to make a significant cash down payment. While the Department of Veterans Affairs does not act as a direct lender, they do serve as a guarantor, securing your financing through a private institution at a favorable interest rate, and saving you the additional cost of mortgage insurance. The savings on mortgage insurance alone can save a family hundreds of dollars a month, depending on the purchase price of your home.
Every real estate purchase includes an amount of calculated risk, but an experienced real estate professional can help you find a home that fits your lifestyle and your budget. Contact Jessica & Sarah today to learn about the best options for you and your family.