Making Your First Home Purchase as a Military Family
Buying a home for the first time is exciting but can feel overwhelming—especially when you’re in the middle of a PCS. As a military family, you face unique challenges that require a specific strategy to get the most out of your purchase. Below are the top 10 questions every first-time home buyer in the military needs to ask, along with insights from my experience working with military clients who’ve been in your shoes.
1. What Are My Options for Using My VA Loan Benefits?
The VA loan is one of the best benefits available to military buyers. It offers zero down payment, competitive rates, and no private mortgage insurance (PMI). Start by verifying your eligibility and getting pre-approved for a VA loan.
Why Pre-Approval Matters
Pre-approval is essential. It gives you an accurate budget and shows sellers you’re serious. I had a buyer once who was eager to find a home but hadn’t yet gotten pre-approved, despite my advice to do so. After a few weeks of searching, he found the perfect home and was ready to submit an offer. Unfortunately, when the seller reviewed his offer, they rejected it and accepted another offer from a buyer who was already pre-approved. Sellers want assurance that buyers can close the deal, so they typically won’t consider offers without pre-approval or proof of funds.
This experience underscored how crucial pre-approval is. Not only does it show the seller you’re serious, but it also places you in a stronger negotiating position. In today’s market, being pre-approved could be the difference between securing your ideal home and losing it to someone who’s better prepared.
2. How Much Should I Spend on a Home to Align With My Basic Allowance for Housing (BAH)?
Your BAH is a valuable tool in figuring out what you can afford without straining your budget. Since BAH is designed to cover housing costs, it’s wise to use it as a guide.
Maximizing BAH
To keep costs manageable, aim to stay within or slightly below your BAH. I’ve had clients who overestimated what they could afford and ended up tight on cash each month. Balancing your BAH with monthly housing expenses helps avoid this. If your BAH is $2,000, consider targeting a mortgage that fits comfortably within that range to leave room for utilities and other expenses.
3. What Type of Home Best Fits My Family’s Military Lifestyle?
Military life is full of moves and transitions. Choosing a home style that can grow with you—or serve as a rental if you’re stationed elsewhere—can be a game-changer.
Consider Your Long-Term Goals
Condos, single-family homes, and townhouses all have unique advantages. One family I worked with bought a single-family home in a neighborhood known for being low-maintenance and military-friendly. They chose it because it had strong rental potential if they needed to move again. The neighborhood’s appeal to other military families meant they could easily rent it out if new orders came up, giving them peace of mind about future flexibility. Think about flexibility, rental potential, and maintenance. Single-family homes may require more upkeep, but they often offer better resale value if you’re looking to sell down the road.
4. How Do I Find a Military-Friendly Realtor?
A realtor with military experience can make a huge difference. Look for someone who personally understands the PCS process.
Why Military Experience Matters
As a retired Marine with many PCS moves under my belt, I know the demands and details of a military move firsthand. Most of my clients are also relocating due to military orders, so I often draw from my personal experiences to help them with timelines and tasks. I’ve even had clients who were completely new to the PCS process, and I stepped in to guide them through administrative steps that go beyond real estate—covering military finance and paperwork requirements they didn’t even know about. Knowing what it’s like to handle all the moving parts of a PCS, I make sure my clients are fully prepared for each step, both in real estate and military logistics. The right realtor can help you avoid stress by understanding the ins and outs of military home-buying.
5. Should I Consider a Fixer-Upper as My First Home?
Buying a fixer-upper can be a great way to get more house for your budget, but military buyers need to consider whether they have the time and resources to take on a renovation.
Weighing the Pros and Cons
Fixer-uppers often have lower purchase prices and, with the right upgrades, can increase in value quickly. However, military life adds some unique challenges. If orders change and you need to move again sooner than expected, unfinished renovations could make selling or renting more difficult. Additionally, VA loans have specific standards for property conditions, so a home in need of extensive repairs may not qualify without substantial upfront work.
For some buyers, a small fixer-upper can be a rewarding project, but it’s wise to consider whether you have the flexibility to manage renovations within your PCS timeline. Consult with your realtor about the feasibility of fixer-uppers in your market and whether they’d make a good fit given your long-term plans.
6. What Are the Hidden Costs of Homeownership Beyond My VA Loan?
The VA loan is fantastic, but it doesn’t cover everything. Hidden costs can surprise first-time buyers if they’re not prepared.
Understanding Additional Expenses
Besides the mortgage, you’ll need to budget for closing costs, property taxes, home insurance, and repairs. I’ve had clients caught off guard by these extra costs. For example, if you’re purchasing a home with an older roof, it may need repairs sooner than you expect. Setting aside a bit for maintenance each month can help you manage unexpected expenses without stress.
7. How Can I Ensure My Home Will Have Good Resale or Rental Potential?
Buying a home that can be resold or rented easily is crucial for military buyers, as a PCS may require you to leave sooner than you planned.
Choosing a Home with Future Buyers in Mind
Focus on homes in desirable areas, close to base, with good schools and amenities. These features will make your home appealing to other military families if you decide to rent it out. My first home was in a desirable area with strong school ratings, which really paid off when I received orders and needed to rent it out. Thanks to the high demand, we had a flood of rental applications, allowing us to choose the most qualified renter and secure top market rates. It was a great reminder of how location can make a home not just a place to live but also a solid investment if you’re ever relocated.
8. How Long Do I Plan to Stay in This Home, and What Happens If I Get New Orders?
It’s essential to have a plan if you’re reassigned sooner than expected. If your timeframe is uncertain, flexibility is key.
Options for Short-Term and Long-Term Stays
If you know you’ll be in a location for only a couple of years, buying a low-maintenance property, like a condo, might be ideal. Alternatively, look for homes that have good rental potential so that if you have to move, you can turn it into an investment property. Keep in mind that even if you plan on a long stay, military orders can always change!
9. What Should I Look for During a Home Inspection, Especially if I’m Not Present?
Home inspections can reveal potential issues that could affect your home’s value and livability. For military buyers relocating from a distance, finding a trusted inspector is vital.
Key Inspection Priorities
Focus on major areas like the roof, foundation, and HVAC. I’ve worked with clients who relied on virtual tours and photo reports from inspectors. A thorough report can give you peace of mind. And don’t hesitate to ask for repairs or adjustments based on the inspector’s findings—your realtor can negotiate these on your behalf.
10. How Do I Prepare for a PCS Move While Buying a Home?
A PCS and a home purchase at the same time can be daunting. Preparation is the key to minimizing stress.
Create a PCS Checklist
Make a checklist for everything from arranging moving services to setting up utilities. One Marine couple I worked with mapped out each step in advance and leaned on family to handle small tasks while they focused on paperwork and financing. Having a realtor and lender experienced with PCS moves can make the whole process smoother, as they can anticipate any unique challenges you might face.
Conclusion
Buying a home during a PCS is possible, but it requires the right questions and preparation. As a military family, you have unique needs and benefits that can work to your advantage. By asking these ten key questions, you’ll be better equipped to make a smart, financially sound choice. Remember: a trusted realtor with military experience, a strong understanding of your VA loan, and a realistic budget aligned with your BAH can make all the difference.
With the right support, you’ll navigate this transition and make a solid investment for your future. Thank you for your service, and here’s to finding the perfect home for you and your family!