subject: San Diego VA Loans Provide Investment Opportunity For BAH [print this page] San Diego VA Loans Provide Investment Opportunity For BAH
Active duty stationed in San Diego are finding that their BAH when applied to a VA loan will allow them to purchase their dream home. For a limited time, interest rates are low, home prices are low, and BAH is high. This combination allows service members to purchase a home in San Diego for the same amount that they use for base housing.Active duty military receive BAH (Basic Allowance For Housing). Due to recent circumstances, purchasing a house in San Diego can now be less (per month) than living in base housing. Currently in San Diego, the average BAH (basic allowance for housing) is $2,527.50 with dependents and $2,008.00 without dependents. This same BAH can purchase a home up to $390,000 (with dependents) and $300,000 (without dependents).The current median home price in San Diego is currently $368,750. What this means is that instead of living in housing or renting an apartment, you can own your own home for the same monthly cost. In fact, you can actually upgrade when purchasing (as compared to housing) for the same BAH / payment.As a homeowner, you can deduct the interest of your mortgage payment. For some homeowners, this is a bigger check refund check from the IRS. For others it means more money each month. By adjusting your tax withholding, you can realize the tax deductions instantly and throughout the year. To change your withholding, ask an accountant for the right adjustment and then request this from your personnel officer.The benefits to home ownership include the freedom to choose your neighborhood, the ability to decorate as you wish, and most importantly, you will not be throwing money away each month.Buying right now means buying a foreclosure and having the lowest fixed interest rate available. Because of the housing crisis, many banks are selling foreclosures below market value. These homes often need minor cosmetic repairs (paint, carpet, landscaping). Many buyers want homes in new condition. This means there is less competition for certain foreclosures that need minor repair. Repairs like paint and carpet while minor turn off some buyers. The lack of competition means you can get a great deal. Even better is the ability to have the repairs added into the transaction.Other first time home buyers may prefer a house that is new or new condition. That's fine too! The VA loan is designed to buy any property that is habitable. The VA will however, inspect the home to ensure it is a fair deal for the buyer. Most new construction projects welcome VA loans as a financing type.Another really great feature about VA loans is that the buyers closing costs are limited (as compared to a conventional loan). In fact, as per law, buyers who use VA loans are not allowed to pay escrow fees and certain title fees. This means it costs less to buy a home using a VA loan than it does to buy a home using a conventional or FHA home loan.What happens if I get deployed or relocated? With a VA loan, you are able to rent your property. But understand that the VA loan program is not designed for the sole purpose of buying a home to rent out.Finally home ownership is affordable once again to San Diego military buyers. With the above points to consider, it's clear why buying your own home is now smarter than living in base housing.
