Understanding Your VA Loan and Basic Allowance for Housing (BAH) Benefits

Active-duty service members and veterans living near Dobbins Air Force Base and Fort McPherson are making the best of their VA Loan and Basic Allowance for Housing (BAH) benefits. How? 
Through the two programs, veterans and active-duty members are able to buy homes for low rates and little out-of-pocket cost. At the same time, active-duty folks who qualify can defray their monthly mortgage costs -- if not cover them entirely -- using their BAH stipends. 
 
The BAH program gives service members on permanent duty within the U.S. housing compensation when government lodgings are not available.  The amount awarded is based on pay grade, location and dependency status.  BAH rates can go as high as $2,800 in some counties and usually can cover all of the service member’s expenses. Permanent duty soldiers with dependents get more than singles.

The VA Loan 
BAH rates do not have to be used solely for rental situations. Military members can use their BAH stipends to cover mortgage costs.  At the same time, they can accumulate or save more money with the VA loan. Why? 
Lenders readily approve the loan due to its low risk factor. The Department of Veteran Affairs covers most of the potential loss a lender might take.  Therefore, rates are low, closing costs are reasonable and veterans save money. 
Qualified veterans in the Atlanta area can obtain a loan up to $417,000 without a down payment. Bad credit scores are not as big of a deal with VA loans as with conventional loans.  Qualified VA lenders will look at the whole picture—credit history and debt to income ratio.  
A lending counselor can help a service member gather all the necessary documentation needed for a VA loan.  The VA website provides a detailed list of what’s required as well.

Eligibility 
Eligibility for the VA program is determined through proof of service and a certificate of eligibility. A military member must be able to prove that he or she served 90 days during wartime and 181 days during a time of peace.
 
Fewer Financial Obligations 
Combining the benefits of these two programs could leave a veteran and his or her family with little financial obligation per month. They will be able to save beyond their imagination or put money toward other opportunities, such as college, vacation or retirement.  Speak with a VA counselor today about options.

This post contributed by guest publisher James Kelley