Why rent when you can own your home? Make your Basic Allowance for Housing (BAH) and the additional temporary increase in funds for 2021 for select service members,  work for you by creating equity and potentially provided tax* advantages. With the VA Loan, you could be putting these BAH dollars towards a home mortgage, instead of paying a landlord.

If you’ve ever considered owning a home, a VA home loan may be the perfect option for you.

Below are a few details about this home loan option:

• 100% financing with full VA entitlement**
• Limited closing costs
• VA financing fees that can be rolled into the loan amount
• Fixed and Adjustable rate loan terms
• A variety of eligible property types, including townhomes and VA-approved condos.
• No prepayment penalties
• No private mortgage insurance (PMI)

According to the department of defense, for a complete listing of BAH rates, see BAH Rates for All Locations. Service members can calculate their individual BAH rates using the BAH Calculator.

BAH 2021 Temporary Increase Information

If you’re buying a home in 2021, good news is there is an increase in BAH for some qualified Service Members. The Department of Defense has temporarily authorized increases in the 2021 Basic Allowance for Housing (BAH) rates for 56 housing markets (commonly referred to as Military Housing Areas, MHAs) across the U.S. Uniformed service members who have incurred increased housing costs above their current BAH may be eligible to apply and receive BAH at the temporarily higher rate. 

Below is information and links regarding the temporary increases:

• The DoD press release for your information is available here: (https://www.defense.gov/News/Releases/Release/Article/2788871/dod-authorizes-a-temporary-increase-to-2021-basic-allowance-for-housing-rates-f/) 
  
• The temporarily increased BAH rates for the 56 affected MHAs can be found here:
  https://www.defensetravel.dod.mil/Docs/BAH_Temporary_Increase_Rates_Changes_Only.pdf
  
• Questions and answers are available here: https://www.defensetravel.dod.mil/Docs/QAs_Temporary_Increase_in_2021_BAH_Rates.pdf 

Service-specific procedures on how to apply for the increased BAH rates, additional information, and guidelines can be found in the links below provided by the DOD:

• Army:  See supporting S1/personnel office for further guidance and application procedures.
• Navy:  https://www.mynavyhr.navy.mil/References/Pay-Benefits/N130C/
• Air Force:  https://usaf.dps.mil/teams/RMSO/rmportal/rmf/SitePages/FunctionalAreaPage.aspx  
• USMC:  https://www.manpower.usmc.mil/     \
• Space Force:  https://usaf.dps.mil/teams/RMSO/rmportal/rmf/SitePages/FunctionalAreaPage.aspx 

What to do when you’re ready to buy a home

Getting into a home after renting doesn’t have to be a stressful experience, it can be a fun time for you and your family. If you have an upcoming PCS Move, that is a great time to consider buying a home. Contact one of our loan officers today to take advantage of your VA Loan Entitlement. To prepare with your first meeting with your Loan Officer (L.O.), we’ve prepared a great list of questions for you to ask your L.O.

Disclaimers

* This Advertisement does not constitute tax advice. Please consult a tax adviser regarding your specific situation.

** A down payment is required if the borrower does not have full VA entitlement or when the loan amount exceeds the VA county limits. VA loans subject to individual VA Entitlement amounts and eligibility, qualifying factors such as income and credit guidelines, and property limits.

*** Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency