You're in the Military: Should You Buy or Rent a Home?
When buying a home in the military, you have many state and national programs available to help you. Here’s what you need to know.
Should you be renting or buying a home in the military? If you’re a military member, you’re likely wondering what the best decision is in the long term.
Active duty careers may make it difficult to decide whether you should be thinking about buying a home in the military because of the uncertainty surrounding your next deployment.
4 Considerations for Buying a Home in the Military
This decision is a personal choice, as buying a home in the military is not a one-size-fits-all situation. Many factors will influence the decision of renting or buying a home in the military, so walking through some big considerations can help you make the best decision for yourself and your family.
Here are four things to think about as you debate the pros and cons of buying a home in the military.
#1. Start By Thinking About the Financial Investment of Renting and Buying
Depending on where you’re currently living, it might be more expensive to buy, or to rent — or, these two decisions might cost about the same.
Before you begin thinking about buying or renting, start broad by researching the financial aspect of this big decision. Conduct a rough estimation of how much it would cost you to rent and how much you would need to spend to buy a home in your current market.
If you’re currently renting, calculate how much you would spend if you lived in the same place for the next few years. Consider rent payments along with utilities and any other expenses that directly relate to your position as a renter.
Next, you’ll want to conduct a rough estimation to find out how much you might spend if you were to purchase a home.
Since many factors go into calculating the total price you’d pay for your home as a buyer, it could be helpful to use a trustworthy online calculator. Ensure the online calculator you choose takes into account taxes, loan terms, location, interest rates, and insurance costs.
Once you determine the cost of the home itself, you’ll want to budget out expenses for utilities, home maintenance, and upkeep.
These numbers do not necessarily need to be one hundred percent accurate, but it can be a good first step to determine if you’re ready to buy a home or if it simply makes more sense to rent.
#2. Determine Your Personal Wants and Needs
Besides crunching the numbers, it’s important to take your personal feelings into account. Where you live impacts your overall well-being and emotions, so you always want to consider your personal motivators behind renting or buying.
Perhaps you’ve always dreamed of being a homeowner and are eager to tap into the benefits of building equity and having a stable place to settle down. Maybe you’re comfortable renting and don’t feel immediately called to enter into a real estate transaction.
Since this is a deeply personal decision, take your feelings into consideration as you strategically map out your next steps.
#3. Look into VA Loans If You’re Interested in Buying a Home
If you’ve decided that you’re interested in buying a home in the military, you should begin researching the special programs you may have access to.
One of the biggest perks military members have access to when buying a home is the Veterans United Home Loan program. As a military member, this financing option can help make buying a home more affordable.
Some advantages of leveraging a VA loan to purchase a home include:
- Competitively low monthly payment amounts due to reduced interest and waived PMI (private mortgage insurance)
- Lenient qualification requirements make it easier to get approved
- No down payments are required
- Credit score requirements are less strict than other loan types
- Funding fees may be waived
VA loans are beneficial for first-time home buyers in the military since they require zero down payment and have relaxed credit score requirements. In the world of mortgages, the VA loan is one of the most affordable and streamlined loan packages available.
#4. Find the Right Agent
If you’re interested in leveraging a VA loan to buy a home, make sure you work with an expert real estate agent with experience working with military members.
Many real estate agents specialize in working with military families, giving them the skills and expertise to address the unique needs of active-duty households. For example, the National Association of REALTORS® has a special certification and designation for Military Relocation Professional certification.
To take the first steps to finding your perfect agent who’s able to assist you in buying a home by using RealEstateAgents.com.
