USE your BAH to BUY a HOUSE | MILITARY HOME BUYING | JORDAN DENNIS
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- čas přidán 23. 01. 2021
- VA loans and Basic Allowance for Housing (BAH), in my opinion, is the greatest opportunity given to active duty military to build wealth through home ownership.
Owning a home is not for everyone, so please get advice from a financial planner, family, mortgage lender and your real estate professional to determine if it is something that you should do. This video is all about my personal experience using my own BAH to buy a home and why the hundreds of military families I have helped did the same.
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As a lender who’s worked with active duty military/veteran clients for almost 20 years I can honestly say Jordan has some great info here that could greatly benefit military buyers.
Assuming you’ll be at the same duty station for several years, it’s absolutely a wise financial decision to consider buying a home using your VA entitlement and then using your monthly BAH to cover the mortgage. It’s a great way to provide stability for yourself and your family and start building long term financial wealth because the equity you build over time is yours.
I appreciate the comment. Thank you! As a veteran myself, I would have loved this info when I bought for the first time
"Assuming you'll be at a duty station for several years"...that is the whole point. Military members are not at the same duty station for a long time.
2 to 5 years is the significant majority. In a good housing market where prices go up like we are currenlty in it is hard to argue against your logic even at 2 to 5 years...i admit, but if you have been lending for 20 years you know it is not always a good market. In my opinion, the only ones that really benefits from the high buy and sell turnover a
of AD military members are real estate agents and lenders.
Now if someone is going to keep the house and rent it out after they move...fine. Hopefully that renter does not listen to Jordan's video because he made it sound like giving your bah to a landlord is just plain ridiculous.
I just have an issue with the whole "don't pay rent to a landlord you are just giving it away"
it is an inaccurate sales pitch and I have seen several Airmen barely making above the poverty line get in over their heads. There are safer ways to build wealth.
Thank you for your service!
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Quick question if I use BAH to pay for my mortgage does that mean the military owns my home and they can take it? Or not?
No. The bank would hold the mortgage. So if you don't pay, obviously the bank takes it back. The military are just the ones paying the monthly entitlement of your BAH.
coming from san diego i get $2619 bah during bootcamp
How did you get bah if you’re coming from boot camp?Does everyone get that or have you served for more than 3 years alread
@@j_t3995 married
@@j_t3995 if your married you already get bah when you join in boot camp. Yes it sucks but that’s the way the system works.
So did you get family separation pay while u was at boot camp ?
I have a Question I live in Oklahoma, I’m buying a house and family already if I go to the army do I have to rent another property or should I sell it and buy another one or what I have to do
Good question. Find out if you have equity in the home. You may choose to sell and keep the cash as a nest egg. Just be sure you have the mortgage spoken for when you buy a hew house using your BAH. And I mean, make sure you can either afford to make the payment or have it rented. I hop that answered your question.
This will only help pay ypur mortgage for 3 years once u PCS to another duty station your BAH will change and u will have to pay rent there. So this only helps if u plan to do 3 then get out or if u plan to rent out ur house the rest of ur time in the military in which BAH wouldn't matter.
Not true actually. You can have up to 3 VA loans at one time as long as you have sufficient entitlement to guarantee the loans. The current VA entitlement covers $766,550 in loans with no down payment. You can also use rental income from a departing residence to offset the mortgage when qualifying for a second VA loan at a new duty station.
your line about "giving it to a landlord" is true...but why did you skip over "amortized mortgage payments" where during the first 5 years only fraction of your mortgage payment is going to principal while the rest goes to paying "interest" to mortgage company. It is almost the same thing as giving your money to a land lord. Definitely not the 60k equity your referenced!
Plus what are the closing cost. additionally according to surveys, being conservative, the average house needs 2 to 6k in maintenance a year.
At 5 years you are essentially breaking even.
There are tax benifits...but how much if you are making a junior enlisted salary?? They get lots of tax breaks already
What if the market goes down or it takes you a couple of months to sell a house. Your margin of error for coming out a head is slim
I believe fSNCOs and officers probably have the salary to cover risk..but E4s /E5s...it is super risky. Not saying it is a bad option...just wish you would give full risk vs benifits
Great comment, and thank you for watching my video. This video is meant for for quick information on how it all works taken from data available. Like I mentioned in the video, talk to a realtor and a lender first, always first. Those big details can for sure be explained better in a one-on-one conversation. Good info, sir. You are appreciated.
great video! I have a question. Can i use my bah to pay for my mortgage back home and still use some of it to pay for where i will be stationed? If It is not enough to cover both my mortgage and where I am temporarily stationed can i apply service member relief act?
BAH to buy or BAH to pay your mortgage once you have purchased the home? I’m slightly confused
Use your VA loan to buy assuming you're a veteran or active duty and use your BAH if you're active duty to make the payments. BAH is tax free so essentially, it's the military paying the mortgage.
@@JordanDennisLeadingYouHome what if I have a house in a city in Texas that I’m paying off. Then I get stationed somewhere in Colorado for say. How would I do it to pay off my house & have housing payed for since I’m married. Slightly confused
Do you use VA loan while stationed then use BAH to pay mortgage?
Zex
I am reserve will be deployed soon,but I am devoce no kids,can i still get BAH? if yes what doc i should fill out
BAH would be for active duty members but you can still buy a house with zero dollars down.
Depends on your rank, Branch and where you’re stationed, you also wouldn’t get as much as as those with dependents and with the economy it may not be enough.
@@JordanDennisLeadingYouHomeso even if I’m not deployed
I am looking into joining the Air Force and I have a 1 year old son so I’m not wanting to always rent a home. If I want to buy a home is it possible that I can be stationed in that area for however long I enlist or do I have to move to different states every time I reenlist?
Great move. I joined the Air Force before I joined the Marines. I would suggest buying a house at every base you're stationed at. Like the video says, the BAH is tax free and many active duty military have a very nice nest egg after they retire from being able to sell the properties for all that equity. I, myself rented a home I owned in California when the Marines moved me to Florida. Sold it for profit a few years later.
@@JordanDennisLeadingYouHome wow okay thanks for your feedback:)
@@JordanDennisLeadingYouHome I’m confused. Do you get the VA loan and then use BAH or
If I buy a house before join to the army? Can I get help to pay the mortgage? I mean can I get extra money plus my basic pay salary for active duty? Because with 1,600$ a mount I CAN'T pay my mortgage
Bah money for rent is separate from basic pay salary google the bah and it will tell you what you will get
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