Military Homebuying Resources: Your Complete Guide to Becoming a Homeowner

Becoming a homeowner is a major milestone, but the process can feel complicated—especially for military families. Frequent moves, deployments, property management decisions, and navigating VA loan benefits can make buying a home more complex than it is for many civilian buyers.

Fortunately, military families have access to unique homebuying resources. Programs such as VA loans can help eligible service members and Veterans purchase homes with no down payment, competitive interest rates, and no private mortgage insurance (PMI).

Here at AHRN, we are a one-stop resource for all your homebuying needs, offering VA loan information, PCS assistance, military housing education, and an unparalleled database of homes for sale nationwide.

If you are a military service member or Veteran looking for homebuying resources, look no further. Below, you’ll find everything you need to know about buying a home and accessing your VA loan benefits.

Is it better to rent or buy? Because military families relocate frequently, deciding whether to rent or buy can be even more difficult.

In many situations, homeownership can help build long-term financial stability. Owning a home is a great way to build long-term wealth, establish residency for retirement, and establish a stable financial future.

Buying a home means investing in the future. Instead of paying a landlord each month, you pay down a mortgage instead and build equity over time. Thirty years from now, you could still pay rent every month, with no equity to your name, or you could own your home free and clear. Imagine the financial freedom of living without a mortgage or rental payment!

Of course, it takes many years to build equity and pay down a mortgage. For military families, that often means purchasing a home, living in it for a few years, and then PCSing somewhere new. To build equity, homeowners must keep the home and rent it out to someone else – a process that can be complicated and stressful.

Becoming a landlord means managing your property, and most military families take on that task from hundreds or even thousands of miles away. Managing a rental property remotely isn’t easy, but the payoff is clear: a long-term investment that is worth the effort.

Historically, real estate has tended to appreciate over time, although housing markets can vary by location and economic conditions.

VA loans are among the best homebuying options for military and Veteran homebuyers. Before applying for a VA loan, it’s important to understand the benefits and entitlements and know how the process works.

What is a VA Loan?

VA loans are mortgages guaranteed by the U.S. Department of Veterans Affairs but financed through private lenders. VA loans are available for service members, Veterans, and qualifying military spouses.

The VA loan program began in 1944 to provide service members returning from war an opportunity to purchase a home without a large down payment. Today, the program works in much the same way, helping service members, Veterans, and their families become homeowners.

There are multiple advantages of using your VA loan benefits:

• No down payment needed: While a down payment reduces the monthly mortgage payment, VA loans do not require one.
• Lower qualifying credit scores
• No private mortgage insurance (PMI) requirements: With a conventional lender (non-VA loan), buyers who do not provide 20% of the home’s value as a down payment must pay private mortgage insurance (PMI) until the total equity in the home reaches 20%. Typically, PMI runs about 0.5% to 2% of your loan balance.
• More competitive interest rates than a conventional loan
• Ability to reuse VA loan benefits over time if eligibility and entitlement remain available.
• Full restoration of benefits after paying off a mortgage or selling a home

Who Qualifies for a VA Loan?

Active-duty service members, Veterans, National Guard members, Reservists, and certain surviving spouses may qualify for VA loan benefits. Applicants must meet at least one of the following requirements to qualify for a VA loan:

• Must have at least 90 consecutive days of service during wartime
• Must have at least 181 consecutive days during peacetime
• Six years of service in the National Guard or Reserves (Guard or Reserve members who have active duty service time may qualify under the active duty time requirements)
• Spouse of a service member who died in the line of duty or as the result of a service-related disability

Borrowers must also meet lender requirements for credit, income, and debt-to-income ratios. Additionally, either the service member or a dependent must live in the home as a primary residence. You cannot purchase a rental property with a VA loan.

A qualified loan professional can help you determine whether you qualify.

Applying for a VA Loan

Accessing your VA benefits is a fairly straightforward process:

1. Apply for a Certificate of Eligibility (COE) through the Department of Veterans Affairs or have your lender help you obtain your COE.
2. Choose a lender familiar with the VA loan process. Access a list of verified, trusted lenders through the AHRN website.
3. Choose a real estate agent who understands the military and Veteran homebuying process.
4. Start looking for a home using the AHRN homefinder tool.

While homeownership is typically a good investment for service members and Veterans, a mortgage is a significant financial commitment. Before taking the plunge, examine your finances carefully and determine whether you can responsibly afford to become a homeowner.

Check Your Credit

Lenders carefully examine your credit reports when considering whether to approve you for a home loan. Because of this, check your credit score before applying to ensure everything is correct.

If you find any errors in your credit history, contact the credit reporting agency and request corrections.

Use Your BAH as a Guide

Buy a home within your financial means. Check your Basic Allowance for Housing (BAH) as a guide to determine your budget, and then stay within those limits.

Pad Your Savings

Purchasing a home can be a strong long-term financial step, but it also comes with upfront and ongoing costs. Preparing for these expenses – and padding your savings account to cover them – will prevent unpleasant financial surprises.

Expenses during the homebuying process might include:

• Closing costs
• Appraisal
• Inspection

After closing, you should maintain a healthy emergency fund to cover maintenance costs and potential repairs, including insurance deductibles.

Financial Readiness Checklist

Becoming a homeowner takes some financial planning. Ensure you’re ready to buy and maintain a home by:

• Checking your credit and correcting any errors
• Making a budget, using your BAH as a guide
• Saving money to cover homebuying expenses
• Creating and maintaining an emergency fund to cover home maintenance and repair costs

As a military service member or spouse, you’re well aware that PCS timelines can (and often do) change. Timing is everything when purchasing a home as a military buyer.

Buying a home before receiving written orders can carry additional risk. Once you sign at the closing table, you own the home whether you move to that location or not.

Purchasing a home in the middle of a PCS can be equally stressful. PCSing is chaotic in its own right, between sorting, packing, and determining move logistics. Purchasing a home amidst that chaos can bring significant challenges. However, going through the homebuying process during a PCS means you can move into your new home as soon as you arrive or soon after.

The other option is to wait until after you PCS to purchase a home at your new location. This option allows you to settle into your new community, determine which neighborhoods are the best fit for your family, and avoid some of the stress from buying a home while moving.

However, buying a home after a PCS means you will have to secure temporary housing. At the same time, you will likely need to wait and arrange temporary storage for your household goods, which will incur additional expenses. You will receive reimbursement for some temporary lodging costs, but depending on the location, this may only cover a few days’ pay.

Learn more about temporary lodging options and reimbursements.

There is no single right approach. Some families purchase a home before a PCS and risk changes to their orders. Some choose to buy a home during the PCS process. Others wait, ensuring they find the ideal home once they arrive at their new station. Carefully weigh the pros and cons before buying your next home.

You should also consider the length of your next assignment before purchasing a home. At the beginning of your mortgage, most of your payment covers interest. But as time passes, more of your payment is applied to the principal balance. The longer you stay in your home, the faster your equity grows.

With that in mind, consider how long you will be at your next duty station, and whether you intend to sell or rent out your home when you PCS again. If you aren’t going to own the home for at least three years, it might not be financially beneficial to become a homebuyer.

Check out AHRN’s PCS housing guide and checklist to help you plan your next move.

Now that you plan to purchase a home at your next duty station, it’s time to start looking for a house. Large online real estate search sites are helpful, but they don’t consider military service history.

Even if you decide to rent your next home, AHRN can help you find verified landlords familiar with military service and its commitments.

AHRN’s database is the go-to home search tool for military and Veteran homebuyers. Our home-finder tool allows you to filter by specific military installations to find the best homes near your next duty station, many of which are PCS-ready.

How to Use the AHRN Database to Compare Listings

AHRN makes it easy to find the perfect home at your next duty station, taking the stress out of your next PCS.

• Set up a free AHRN profile to help narrow your search results.
• Find homes for sale and rent near your next installation and save your favorites – both on- and off-base.
• Input anticipated move dates and location to receive tailored emails with relevant resources.
• Determine BAH for your next location.
• Access free PCS resources to make your next move a little easier.

Need help navigating AHRN? Check out our user guide.

Once you have received your COE verifying VA loan eligibility, you can move forward with the homebuying process.

Preapproval

First, contact a reputable lender familiar with the VA loan process. You will fill out financial paperwork, and the lender will issue a prequalification based on preliminary data. Prequalification is not an assurance of a loan; it’s merely the lender’s estimate of your mortgage amount and interest rate. Sellers typically require a prequalification letter before considering your offer.

Over the next few weeks, your loan officer will closely examine your credit history, employment background, and salary information. If the loan officer finds everything to be in order, you will receive preapproval, which establishes you as a low-risk homebuyer. Sellers are more likely to accept an offer from preapproved buyers.

A preapproval is not the end of the mortgage lending process. Nothing is finalized until closing day. It’s essential to refrain from any large purchases, job changes, or other actions that impact your credit before closing.

Finding the Right Home

Once you have prequalification or preapproval, you can start the search for your next home by working with an experienced and reputable real estate agent. Ask for recommendations from service members or spouses at your next location, and interview real estate agents to find the best fit.

Your real estate agent can help you search for a home that meets your needs and budget. The

AHRN home search tool can help you find the right home in the right area.

Next, your agent will schedule private showings at each property. Once you find the right property, it’s time to make an offer.

Making an Offer

When you find a home that meets your needs, your real estate agent will help you make an offer. An experienced agent can effectively review current market conditions and recent sales, then suggest an offer that is acceptable to the buyer and fair to the seller. Sellers may wish to negotiate on the initial offer, reject it, or accept it. If the seller accepts your offer, you’ll officially be under contract.

Inspection and Appraisal

Once under contract, you will schedule a home inspection, and your lender will order an appraisal.

VA loans require a VA appraisal to confirm the home’s value and ensure it meets Minimum Property Requirements (MPRs). While a home inspection is not required by the VA, it is strongly recommended for buyers.

The home inspector will inspect everything from plumbing and electrical systems to signs of termite damage. The inspector should notify you immediately of any significant issues. After the inspection, you’ll receive a detailed report of the findings. If necessary, you can ask the sellers to make repairs. You can also back out of the deal at this time, typically without any penalties. After the buyer and seller agree on an inspection resolution, your lender will order an appraisal of the property to determine fair market value. This process protects both you and the lender from making a bad investment.

To qualify for a VA loan, a home must meet Minimum Property Requirements (MPRs), which ensure the home is safe, structurally sound, and sanitary.A VA appraiser will review the home to ensure it meets safety, sanitation, and structural standards under VA Minimum Property Requirements (MPRs).

Your lender will order an appraisal of the home. The VA loan appraisal step confirms that the home is worth the purchase price and meets the VA’s standards for safety and livability. A certified appraiser visits the property and compares it to similar homes in the area. This process allows the appraiser to determine the home’s fair market value, which in turn helps your lender verify that the home qualifies for VA financing.

If the appraisal comes back higher than expected or repairs are needed, you’ll typically work with the seller to address those issues before closing.

Underwriting and Closing

After the appraisal and inspection, your lender will start the underwriting process to confirm your loan. You will work closely with your loan officer to finalize the details of your mortgage. You will also work with the title company that handles all the legal paperwork to transfer ownership of the property.

After the lender and title company determine everything is in order, you will receive a clear to close, or final approval of your loan. Your lender, title company, and real estate agent will work together to schedule a closing date, time, and location. After signing all documents and paying all necessary fees, you will get the keys to your new home.

Congratulations! You’re now officially a homeowner.

Make sure you keep physical and electronic copies of all documents, including VA loan paperwork, inspection and appraisal reports, and closing documents.

Becoming a homeowner doesn’t stop at the closing table. Now that you own your home, you are responsible for all maintenance, upkeep, and repairs, which can be costly.

You can limit your expenses by purchasing a home warranty. Your real estate agent might be able to negotiate a short-term warranty into the purchase agreement. These warranties often cover items such as water heaters, kitchen appliances, HVAC systems, sewer systems, and other large-ticket items.

Even with a home warranty, homeowners should plan for the unexpected. Set aside money every month as an emergency fund to cover unplanned expenses and regular maintenance costs.

Immediately after closing, you will need to transfer all utilities to your name. Typically, you arrange this transfer before closing day. The seller’s agent should provide you with the names and contact information for local utility providers.

You will also need to secure homeowners’ insurance and must provide proof of this policy to the lender before closing.

Some service members are required to register their housing with the installation’s housing office, even when living off-base. Check with your local command office or base housing office to determine if you must register.

The Next PCS: Should You Sell or Rent?

When it’s time to PCS again, you have a choice: sell your home or rent it out to tenants.

You will need to consider many factors when making this decision. The longer you own your home, the more equity you build, so keeping your home and renting it out can be a good financial decision. However, renting out your home comes with its own challenges, such as finding reliable renters and managing your property from another state or overseas.

Military and Veteran homeowners who choose to rent out their homes can post their available properties and seek out military renters through AHRN’s listing platform.

Read more at Military Homeowners — Should You Rent or Sell Your Home?

Whether you recently purchased your first home or are a seasoned homeowner, AHRN is your one-stop resource for homebuying resources and PCS-related information.

If anything is certain in the military, it’s that military life is uncertain. Be prepared for the unexpected by building financial literacy and reading available housing-related resources.

AHRN has everything you need to make your next PCS run smoothly, from real estate and rental listings to PCS checklists. Our housing resources are updated regularly, including some of our most popular links:

• PCS Toolkit
• Home search tools with installation-specific search filters
• VA Loan Finder, connecting military and Veteran homebuyers with reputable and experienced lenders
• BAH Calculator

You can also stay up-to-date on VA homebuying programs and policies through the VA’s website.

Finally, utilize the housing and relocation assistance offices at your gaining military installation. These offices can provide detailed information about your housing options both on- and off-base and connect you with other PCS resources.

Military and Veteran homebuyers have access to powerful resources that can make the path to homeownership easier. Programs like VA loans, along with trusted tools and guidance from AHRN, help simplify the homebuying process for military families. Whether you’re purchasing your first home or are a seasoned homeowner, using your VA loan benefits can save you thousands of dollars over the life of your mortgage.

AHRN has everything you need to become a homebuyer, including VA loan resources, PCS guides, installation information, and tips for being a military landlord.

Ready to take the next step toward homeownership? Explore verified homes near your duty station and start your journey with AHRN.