Written by: The ADPI Team
While some may see it as just a job, being in the military requires tremendous dedication and commitment. The physical and mental toll is a lot to handle and is worsened by other concerns of living. Deciding whether or not to buy a house, for example, can be a headache that leads to frustration and worry.
Luckily, there are enough positives of doing so that can put your mind at ease. In this article, we’ll take a look at the various benefits of buying a home while you’re in the military, as well as various tools that’ll help you accomplish that dream. So, keep reading to learn more.
Having a Sanctuary
No matter what your special duties are, working in the military can wear down even the strongest of individuals. When the times get tough, having somewhere you can call “home” is far from overrated. Psychologically, your house can be more than just a literal shelter, but also a shelter from all the stressors in your life.
Set up in a way catered to your needs, your home can be an essential part of your life and will be there when you need it most. Away from all the stress of the workplace, a house is yours and only has what you give it. While you don’t have to be isolated, it’s nice to have the option to clear your head after a stressful day.
Starting a Family
While your home is yours, it does not have to be yours alone, of course. When you want to settle down with someone, it can be tough to do that when you’re traveling and working a lot. This lifestyle is not perfect, but it can be helped.
By having a home, you can help add a foundation and sense of security to your relationship. Even if you’re away for a while, you and your significant other can still share the same house, adding to the strength of your relationship. These feelings could not be created in a rental house.
The same goes for if/when you decide to have children. Providing a place of stability is important for you, but also your kids. By giving them a place to learn and grow, you’ll be able to thrive as a complete family.
Personalization and Independence
The military is a brotherhood and sisterhood that relies on cooperation and uniformity from each of its personnel. Everyone in your unit, platoon, or branch has your back, and you have theirs. Having said that, you’d like to carve your own life here and there.
In addition to being an escape, your house can offer you the chance to be independent that the military may not be able to offer. When you’re renting a house, on the other hand, it gives you little and restricts your freedom to be who you want to be.
Buying a house gives you control with:
- Maintenance and construction
- Location and community
- Pets and guests
- Equity-building and tax-deductibility
Renting a space leaves you with:
- Landlord rules
- Chance of eviction
- Invasive neighbors
- Lack of control over building and utilities
While some may argue that the cost of buying a house is too high, there are ways for you, a member of the military, to get around it and achieve your happiness. Also, buying real estate is one of the best wealth builders for military members.
Military Support Organizations
You’ve probably learned from your time in the military that no man or woman is an island and needs help from time to time. This is certainly true when buying a house, and that’s where our groups like Active Duty Passive Income come in.
ADPI offers a network of military real estate agents and an in-house lending team. Each agent is interviewed and vetted exclusively by Active Duty Passive Income’s Realty team — giving you access to top-quality real estate professionals across the country.
Their in-house lending team is an exclusive branch of American Mortgage Network and provides loan professionals that are experts in the VA Loan process. Available in 27 states (and adding more!), our lending team offers assistance in loans, refinances, and more.
In addition to the help of those in the community, the government can also step in and give you a leg-up when buying a home. Whether you are currently serving or have already served your time, the government is ready to return the favor.
VA home loans help those that are eligible, with some assistance that caters to your needs, ensuring that quality standards of property and competitively low-interest rates are given to you. You should be aware of the different types of VA home loans that may be available to you.
|Loan Type||Eligibility Requirements||Potential Benefits|
|Purchase Loan||Certificate of Eligibility (COE)
Meet standards of credit and income from government and lender
A live-in home bought by loan
|No down payment
Better terms and rates
Fewer closing costs
No penalty fee
|Native American Direct Loan||Native American Veteran or Veteran married to Native American
Memorandum of Understanding with tribal government
Meet credit standards and prove that income can cover payments
Live-in home that loan will be used for
|No down payment
No private mortgage insurance
Limited closing costs
Potential to get another loan
|Interest Rate Reduction Finance Loan||Already have a VA home loan
Use a new loan to refinance an old loan
Prove you live/lived in the house covered by the loan
|Lower mortgage payment through lower interest rates
Stabilize monthly payments with a fixed interest rate
|Cash-out refinance loan||COE
Meet government and lender’s standards of income
Live-in home that’ll be refinanced by loan
|Use the cash from equity to pay off other needs and concerns
Refinance a non-VA loan into a VA-backed loan
Before you pull the trigger on any of these options, you may want to ask around or use any of your connections for additional information. Nevertheless, using the information and resources above will give you a good idea as to how you can refinance your home.
Plan Ahead For Your Future
No matter how young or active you may be at this moment, you’ll have to slow down eventually. Even if you’re the bravest soldier or fiercest warrior, there’ll come a time when you’ll have to ease your pace in life. At that point, you’ll want a house to match your new lifestyle of ease and comfort.
However, if you spend your younger years switching between rented spaces, you won’t be able to truly learn the skills necessary to properly maintain a house. Even without a family, knowing your way around a house is more than useful and comes with the territory. While these days may be far away in the future, it can’t hurt to try it, especially with everything mentioned above to help you on your journey.
Ability to Invest in Real Estate
While planning for your future, investing in real estate can provide a great way to start your path to financial independence. Tools like the VA Home Loan make it possible for service members to participate in real estate investing. By buying low, occupying the home, and renting out the property when it’s time to PCS, military members can create passive cash flow to work toward a possible early retirement.
You also may not know that the VA Loan allows borrowers to purchase properties with up to four units. With this advantage, you can buy a multifamily property, live in one of the units, and have the ability to pay most–if not all of your mortgage by renting out of the remaining units.
Buying a home is not by any means an easy decision, especially when you have an incredibly important job, such as your own. However, this should not discourage you from understanding the options you have at your disposal. You’ve joined the hard fight for your country, and there’s no reason not to enjoy its benefits.
If you’re still unsure, take the time to look into the sites and programs mentioned above, as well as anything else you may find in your research. Make use of your peers and superiors, as they may have insight or connections beyond your own. Most importantly, think about what will make you happy and meet your needs to guide your decision-making as you make a life for yourself.