2- Comprehensive Homebuying Guide by Son Nguyen

Disclaimer

This guide is published by USA Homeownership Foundation, Inc., dba the Veterans Association of Real Estate Professionals (VAREP), and is intended solely for general informational and educational purposes. It is not legal, financial, tax, or credit advice and should not be relied upon as a substitute for professional consultation with qualified attorneys, financial advisors, or licensed housing counselors.

While VAREP is a HUD-Approved Housing Counseling Agency and a registered Veteran Service Organization, the content presented herein is based on publicly available information, commonly accepted ﬁnancial practices, and organizational experience as of the date of publication. VAREP makes no representations or warranties regarding the accuracy, completeness, or timeliness of the information. Laws, regulations, policies, and ﬁnancial products are subject to change without notice.

VAREP is a nonproﬁt 501(c)(3) organization and is not a liated with, endorsed by, or sponsored by the U.S. Department of Veterans A airs (VA), the U.S. Department of Housing and Urban Development (HUD), the U.S. Department of Defense (DoD), or any other government agency. The views and information expressed herein do not necessarily reﬂect those of any government entity.

No client-counselor, ﬁduciary, or professional relationship is created by the use of this guide or reliance on its content. Users are solely responsible for decisions made based on this material and are strongly encouraged to seek individualized advice from appropriately licensed professionals.

VAREP expressly disclaims any liability for any loss, harm, or damages arising from the use of or reliance on this publication.

Compliance and Non-Discrimination Notice

Fair Housing and Equal Access Statement

VAREP (Veterans Association of Real Estate Professionals), a HUD-Approved Housing Counseling Agency, is committed to providing housing counseling and ﬁnancial education services in accordance with the Fair Housing Act and all applicable civil rights laws.

We do not discriminate based on race, color, religion, national origin, sex, familial status, disability, age, sexual orientation, gender identity, or any other protected status. We are committed to equal opportunity and equitable access for all individuals and families.

Limited English Proﬁciency (LEP) Access

VAREP is committed to ensuring meaningful access to services for clients with limited English proﬁciency. Upon request, we will provide translation materials or access to interpreter services in accordance with HUD guidelines.

For assistance in another language, please contact us at: info@varep.net.

HUD Disclaimer

The content does not necessarily reﬂect the views or policies of HUD or the U.S. Government.

Privacy and Conﬁdentiality Statement

VAREP protects the conﬁdentiality of all personal information shared during housing counseling or ﬁnancial education.

We do not disclose any personally identiﬁable information to third parties without your written consent, except as required by law or for HUD grant compliance and reporting purposes.

Disclaimer

Compliance and Non-Discrimination Notice

Thank you and Welcome!

Section 1: Understanding Homeownership & Financial Readiness

Section 2: Active-Duty Homebuying Considerations (PCS/TDY)

Section 3: Transitioning Servicemembers Homebuying Considerations

Section 4: Veteran Homebuying Considerations

Section 5: Surviving Spouses & Family Member Eligibility

Section 6: Fraud Prevention & Consumer Protection

Section 7: The VA Loan — You Served, You Earned It

Section 8: Understanding FHA and Conventional Loan Options

Section 9: Finding Support & Financial Assistance

Section 10: The NAR Settlement and Impact on Homebuyers

Section 11: The Homebuying Process

Section 12: Real Estate Savings with the MVP Heroes Housing Network

Section 13: Life After Closing — Ownership, Protection, and Planning

Appendix A: Basic Real Estate Glossary of Terms

Appendix B: Permanent Change of Station (PCS) Move Checklist

Appendix C: Deployment Readiness Checklist

Appendix D: Rent vs. Buy Checklist

Appendix E: Homebuyer Readiness Checklist

Appendix F: VA Loan Pre-Purchase Checklist

Appendix G: Needs vs. Wants Worksheet

Appendix H: Homebuying Process Checklist

Appendix I: Post-Purchase Homeownership Checklist

Appendix J: Transitioning Servicemember Checklist

Appendix K: Obtaining Your

Welcome & Thank You

Welcome to the Military & Veterans Edition of the Homebuyer’s Guide—a resource created to equip you with the knowledge, tools, and support needed to conﬁdently achieve homeownership.

At the Veterans Association of Real Estate Professionals (VAREP), our mission is to serve those who have served. Whether you're active duty, transitioning out of the military, or a veteran, this guide is tailored to help you make informed decisions, avoid common challenges, and fully utilize the beneﬁts you've earned.

Be sure to review Section 12, where we introduce the MVP Heroes Housing Network, a VAREP program o ering exclusive savings and support during your real estate journey.

You can read it cover to cover or jump directly to the sections most relevant to your needs.

And don’t miss the appendices, ﬁlled with helpful checklists and worksheets to guide you step by step on your path to homeownership.

Thank you for your service. Now, let us serve you every step of the way home.

Section 1: Understanding Homeownership & Financial Readiness

Understanding Homeownership & Financial Readiness

Whether you’re transitioning out of service, relocating due to PCS orders, or planting roots after years of military life, homeownership can be a powerful step toward long-term stability and wealth-building. But before entering the market, it’s important to assess whether now is the right time—and whether your ﬁnances are ready to support such a commitment. This section helps military-connected families make informed decisions from the very beginning.

Renting vs. Buying: Making the Right Choice

Homeownership o ers many advantages—equity building, housing stability, and tax beneﬁts—but it’s not always the right move, especially for those in highly mobile or uncertain phases of service.

Renting may be a smarter short-term solution in cases where:

You’re likely to PCS again within the next 2–3 years. You’re unsure about staying in the area long-term. Your credit score or savings aren’t yet mortgage-ready. Buying a home may be more favorable if: You plan to stay in one place for at least 3–5 years. You qualify for a VA home loan and can access favorable terms. You want to build equity and reduce housing costs over time.

Tip: Talk to a VAREP housing counselor to conduct a rent-vs-buy analysis based on your unique military timeline and ﬁnancial position.

Evaluating Financial Stability

Before you apply for a mortgage, take a realistic look at your ﬁnancial picture. The Consumer Financial Protection Bureau (CFPB) recommends reviewing:

Income Stability: Do you have a consistent, reliable income from military pay, retirement, VA beneﬁts, or civilian employment?

Savings: Do you have enough saved for closing costs, emergencies, and ongoing maintenance? Experts recommend having 3–6 months of expenses in reserve.

Debt Load: Are your monthly payments manageable? Mortgage lenders look closely at your Debt-to-Income (DTI) ratio—ideally below 41% for VA loans.reserve.

Spending Habits: Are you consistently able to pay bills on time and avoid living paycheck to paycheck?

Tip: Use a Homebuyer Budget Worksheet to assess where you stand.

Your credit proﬁle is a critical part of home loan approval—especially when using a VA loan, which doesn’t have a set minimum credit score but relies on lender benchmarks (often 580–640).

Key Credit Factors

Payment History – Do you pay bills on time?

Credit Utilization – How much of your available credit are you using?

Credit Age – How long have your accounts been open?

Credit Mix – Do you have di erent types of credit (cards, loans)?

New Credit – Have you opened many accounts recently?

Note: You’re entitled to one free credit report per year from each of the three major credit bureaus: Equifax, Experian, and TransUnion. Access your reports at www.annualcreditreport.com

Tip: If your credit score is low or your history is limited, don’t worry—VAREP o ers HUD-certiﬁed counseling to help you improve your credit and prepare for homeownership.

Budgeting for Homeownership

Owning a home involves more than a mortgage payment. You’ll need to prepare for:

Property taxes and homeowners insurance

Utilities and internet

Routine maintenance and unexpected repairs

HOA dues (if applicable)

VA Funding Fee (for those not-exempt)

Tip: Use a Home A ordability Calculator to estimate what you can a ord, but be conservative. Many ﬁnancial experts recommend that your total housing costs not exceed 28%–31% of your gross monthly income.prepare for homeownership.

Steps to Prepare

Review your monthly income and expenses

Eliminate high-interest debt if possible

Build savings for a down payment or cushion, even if VA doesn’t require it

Factor in move-in costs and furnishings

Section 2: Active-Duty Homebuying Considerations (Pcs/Tdy)

Active-Duty Homebuying Considerations (PCS/TDY)

Military life brings unique challenges that directly a ect homeownership decisions—from frequent relocations to deployment logistics and entitlement-based ﬁnancing. This section explores the most common scenarios faced by servicemembers and military families and o ers best practices for navigating them conﬁdently and in compliance with VA loan rules.

PCS Moves and Temporary Duty (TDY)

A Permanent Change of Station (PCS) can quickly turn a dream home into a temporary address. Since military families move every 2–4 years on average, homeownership must be approached with ﬂexibility and long-term thinking.

Key Considerations

Equity Timeline: Buying only makes ﬁnancial sense if you stay in the home long enough to build equity.

Exit Strategy: Consider how easily the property could be rented or resold if you receive orders.

Market Conditions: Research the housing market’s resale trends and average appreciation rates.

Closing Costs: Be mindful of upfront expenses; frequent moves may mean you don’t recover them quickly.

Tip: Consider homes in areas with strong rental markets to preserve value and allow ﬂexibility if you're reassigned.

Deployments and Homeownership Managementt

Deployments require extra planning to ensure that mortgage, maintenance, and communication obligations are covered.

Steps to Prepare

Assign a Power of Attorney (POA): Choose someone you trust to manage real estate matters during your absence.

Automate Payments: Set up auto-pay for mortgage, utilities, and other recurring expenses.

Communicate with Lender and HOA: Inform relevant parties about your deployment and provide contact information for your representative.

Check Insurance Coverage: Conﬁrm your property is fully insured and your policy covers vacancy periods if applicable.

Tip: Use a Financial Deployment Readiness Checklist to prepare your property and ﬁnances before you deploy.

Utilizing BAH and BAS in Mortgage Qualiﬁcation

Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS) are counted as non-taxable income by most lenders and can signiﬁcantly improve your buying power.

BAH Tips:

Use BAH to budget for your monthly housing costs, but don’t stretch beyond your rate.

Remember that BAH rates vary by duty station—check your local rate at www.defensetravel.dod.mil

Tip: Most VA lenders will include BAH and BAS in your total income calculation—but it must be consistent and veriﬁable.

Tip: VAREP counselors can help you calculate a ordability using your full military compensation.

Using Power of Attorney (POA) in Real Estate Transactions

Deployments, TDY, and training often interfere with in-person closings. The VA allows the use of POA in homebuying, but it must meet speciﬁc criteria:

VA POA Guidelines:

POA must speciﬁcally authorize real estate and loan transactions.

The veteran must sign a statement conﬁrming intent to obtain the loan and occupy the property.

A fully executed POA must be submitted to the lender and VA underwriters in advance.

Tip: Talk to your JAG o ce for help drafting a compliant POA.

Understanding the Servicemembers Civil Relief Act (SCRA)

The Servicemembers Civil Relief Act (SCRA) provides legal protections for active-duty servicemembers, including:

Interest Rate Cap: Pre-service debt is limited to 6% interest while on active duty. Foreclosure Protection: Mortgage servicers cannot foreclose without a court order.

Lease Termination Rights: Allows you to break leases if reassigned or deployed.

These protections extend to mortgages, credit cards, auto loans, and leases. If you're in the process of buying a home or are already a homeowner, these rights can safeguard your ﬁnances.

Considerations for Guard, Reserve, and Dual-Military Households

Reservists and National Guard members may face unique lending or eligibility hurdles:

VA Loan Eligibility: Generally requires 90 days of active service or 6 years in the Guard/Reserve.

Inconsistent Income: Can complicate lender approvals; may require civilian income veriﬁcation.

Deployment Activation: Sudden activations can delay or disrupt real estate closings.

Dual-military couples must plan for

Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS) are counted as non-taxable income by most lenders and can signiﬁcantly improve your buying power.

Combined income (and BAH stacking)

Staggered deployment cycles

Coordinated POA and guardianship planning if children are involved

Summary

Homeownership is possible—and often beneﬁcial—for military families, but it requires additional planning and strategic decision-making. VAREP understands the unique needs of servicemembers, Guard and Reserve personnel, and dual-military families. We’re here to ensure that your service doesn’t become a barrier to your goals.

Section 3: Transitioning Servicemembers

Homebuying Considerations

Transitioning Servicemembers Homebuying Considerations

Transitioning from military to civilian life involves critical decisions—housing being one of the most important. While the VA loan o ers unmatched advantages, purchasing a home during this period requires strategic planning and informed choices.

Employment & Income Stability

Lenders require veriﬁable, stable income—challenging during a transition. Military income may not qualify if separation is within 12 months.

Acceptable alternatives: civilian job o er letters, spousal income, VA disability, and retirement pay (with proper documentation).

Tip: Secure employment before applying to improve approval odds.

Budgeting for Civilian Life

Loss of BAH, BAS, and Tricare coverage can signiﬁcantly alter your budget. Transitioning families should plan for increased housing, healthcare, and living costs.

Tip: Build a detailed post-service budget before house hunting.

Timing Your Purchase

Renting temporarily can help you adjust, explore communities, and avoid rushed decisions. Use this time to save, understand your new ﬁnancial landscape, and improve credit.

Tip: Don’t feel pressured to buy right away—stabilize ﬁrst.

Understanding VA Loan Beneﬁts

VA loans require no down payment, no PMI, and o er favorable rates. Disabled veterans may be exempt from the VA funding fee.

Tip: Meet with a VA-approved lender early to evaluate your eligibility and beneﬁts.

Choosing the Right Location

Consider proximity to jobs, VA healthcare, and veteran support networks. Evaluate schools, cost of living, and community ﬁt for your family.

Tip: Research neighborhoods with strong veteran resources and economic opportunities.

Select real estate agents and lenders who understand VA loans and the challenges of transition. Financial advisors with military experience can help you make informed, sustainable choices.

Tip: Ask your agent if they’ve worked with recently separated servicemembers. Also ask help from veteran service organizations like VAREP for referrals to qualiﬁed professionals.

Section 4: Veteran Homebuying Considerations

Veteran Homebuying Considerations

Veterans face unique considerations when entering the housing market, shaped by their service history, access to beneﬁts, and long-term needs. Understanding these distinctions can help veterans make conﬁdent, informed decisions throughout the homebuying process.

Re-Entering Civilian Life

Purchasing a home after military service often coincides with major life changes—new careers, relocations, or adjusting to a ﬁxed income such as VA disability or retirement pay. Veterans should stabilize their income and budget before pursuing homeownership to ensure long-term a ordability.

VA Loan Underutilization: Why Education Matters

Despite being one of the most powerful homebuying tools available, the VA loan beneﬁt remains signiﬁcantly underused—fewer than 15% of eligible veterans have taken advantage of it.

This underutilization is often due to misinformation, lack of awareness, or outdated perceptions about VA loan complexity. Educating yourself about the VA loan’s true advantages.

Tip: Seek assistance from housing counselors like VAREP to fully understand and maximize this earned beneﬁt.

Despite the strength of VA loans, some sellers and agents mistakenly view them as complicated or inferior. Veterans should work with experienced agents who can dispel myths, such as VA loans being slow or more expensive—and advocate e ectively in competitive markets. VA Loan Misconceptions & Unconscious Bias

Tip: Seek referral from veteran service organization like VAREP to real estate and lending professionals who are savvy working with the VA loan and veterans.

Disability-Related Beneﬁts

Veterans with a service-connected disability rating may qualify for key ﬁnancial advantages:

Funding Fee Waiver: Veterans with a 10% or greater rating do not pay the VA loan funding fee, reducing upfront costs.

Property Tax Relief: Many states o er partial or full exemptions based on disability rating—potentially saving thousands annually.

Specially Adapted Housing (SAH) Grants: Veterans with serious injuries may receive grants to purchase, build, or modify a home for accessibility.

Veterans should consider future needs, including proximity to VA healthcare, one-story layouts for accessibility, and stable communities that support aging in place. For veterans with mobility or health concerns, choosing a home that can evolve with life’s changes is essential.

Avoiding Scams and Predatory O ers

Unfortunately, some companies target veterans with misleading reﬁnance o ers, credit schemes, or “military discounts” that aren't legitimate. Veterans should avoid high-pressure sales tactics.

Tip: Rely on HUD-approved housing counselors like AAREP and VA-recognized lenders for trusted guidance.

Section 5: Surviving Spouses & Family Member Eligibility

Surviving Spouses & Family Member Eligibility

The VA home loan benefit extends beyond veterans—it may also support surviving spouses under certain conditions. For those navigating grief and uncertainty, understanding this benefit can o er a pathway to stable housing and financial recovery.

Who Is Eligible?

You may qualify for a VA home loan as an unremarried surviving spouse if:

Your spouse died in service or from a service-connected disability.

Your spouse was totally disabled (rated 100%) and passed away from any cause after being rated disabled for at least 10 years.

You are the spouse of a veteran who was a prisoner of war (POW) or declared missing in action (MIA).

You remarried after age 57 and after December 16, 2003.

Note: Eligibility is not automatic—you must apply and submit documentation to the VA.recovery.

How to Apply

To use the beneﬁt, obtain a Certiﬁcate of Eligibility (COE) by submitting:

DD Form 214 or equivalent proof of service

VA Form 26-1817 (for surviving spouses)

Death certiﬁcate

Marriage certiﬁcate

Tip: Apply online at VA.gov or work with a VA-approved lender who can assist with your COE request.

Homebuying Considerations

Surviving spouses generally enjoy the same VA loan beneﬁts as veteran borrowers, including:

No down payment or PMI

Funding fee exemption

Keep in Mind

You can’t co-borrow with a non-veteran unless married.

There is no timeline—you can move forward at your own pace.

Budget carefully and seek guidance during this emotionally complex transition.

You don’t have to navigate this process alone. Trusted support is available to guide you:

VAREP Housing Counselors – HUD-approved, survivor-sensitive support VA Survivor Beneﬁts Hotline – 1-800-827-1000

Military OneSource – Grief counseling, legal aid, housing advice Gold Star Family Programs – State and local survivor assistance.

Final Thought

If you're a surviving spouse, you may still access the home loan beneﬁt your loved one earned through service. With the right information and support, homeownership can be a step toward both healing and security.

Section 6: Fraud Prevention & Consumer Protection

Fraud Prevention & Consumer Protection

Military families and veterans are often targeted by scams, fraud, and misleading financial products—especially after purchasing a home. Whether it’s a fake loan o er, a deceptive contractor, or an exploitative refinance scheme, being informed is your first defense. This section highlights key consumer protections, warning signs, and steps to take if you become a victim.

As a homebuyer and veteran, you are protected by several federal laws

Truth in Lending Act (TILA) – Ensures clear disclosure of loan terms and costs

Real Estate Settlement Procedures Act (RESPA) – Prohibits kickbacks and hidden fees in real estate transactions

Fair Housing Act – Protects against housing discrimination

Equal Credit Opportunity Act (ECOA) – Ensures credit decisions are made without bias based on race, gender, disability, or veteran status

Servicemembers Civil Relief Act (SCRA) – Caps interest on pre-service debts, protects against foreclosure during service, and allows lease termination

Note: If you suspect any of your rights have been violated, contact VAREP, the CFPB, or HUD immediately.

Red Flag What It Might Indicate

"Guaranteed approval" without checking credit

Requests for upfront fees or gift cards

O ers to “repair credit fast” for a fee

Pushy salespeople or contractors insisting you act fast

Unsolicited calls, texts, or mail claiming you’re eligible for government housing aid

Keep your personal information safe:

Only use secure websites (https://) and veriﬁed lenders

Shred ﬁnancial documents before disposal

Monitor your credit regularly at AnnualCreditReport.com

Loan scam or predatory o er

Fraudulent services

Illegal credit repair scam

Pressure tactic from dishonest actors

Likely phishing or scam

Place fraud alerts or freezes with the credit bureaus if you suspect identity theft

Never give out login info or wire money without conﬁrming with your agent/lender directly

Tip: Consider placing an Active Duty Alert with the credit bureaus if deployed. It lasts 12 months and requires creditors to take extra steps to verify identity.

Where to Report Scams or Abuse

If you’ve been targeted or victimized, act quickly

Consumer Financial Protection Bureau (CFPB): consumerﬁnance.gov/complaint

Federal Trade Commission (FTC): reportfraud.ftc.gov

State Attorney General’s O ce: Lookup available online for your state

Summary

Scams thrive when buyers are uninformed, isolated, or overwhelmed. As a military or veteran homebuyer, you have the tools, laws, and organizations like VAREP to protect you. If something feels o —pause, verify, and reach out. Protecting your home also means protecting your identity, your credit, and your peace of mind.

Section 7: The Va Loan You Served, You Earned It

The VA Loan — You Served, You Earned It

The VA Home Loan is one of the most valuable beneﬁts earned through military service. Backed by the U.S. Department of Veterans A airs, it makes homeownership more accessible and a ordable for eligible veterans, active-duty servicemembers, and qualifying surviving spouses.

Key Features of the VA Loan

No Down Payment Required – Keep your savings intact.

No Private Mortgage Insurance (PMI) – Avoid costly monthly premiums.

Competitive Interest Rates – Often lower than conventional loans.

Flexible Credit Guidelines – More forgiving for those with limited credit history.

Limited Closing Costs – The VA limits fees that veterans can be charged.

VA Funding Fee – A one-time fee that can be ﬁnanced, with exemptions available.

Tip: Veterans with a 10% or greater disability rating are exempt from the VA funding fee.

Who’s Eligible?

You may qualify for a VA loan if you meet one of the following:

90 days of active-duty wartime service

181 days of peacetime active duty

6 years in the National Guard or Reserves

Are the unremarried surviving spouse of a veteran who died in service or from a service-connected cause?

In addition, you must:

Intend to live in the home as your primary residence

Have su cient income and a satisfactory credit history

Tip: Not sure if you're eligible? A VA-approved lender or VAREP housing counselor can help you obtain your Certiﬁcate of Eligibility (COE).

Preparing for the VA Loan Process

1- Conﬁrm Eligibility & Request COE a. Apply online via VA.gov, ask your lender, or get help from a HUD-approved counselor.

2- Pre-Qualiﬁcation vs. Pre-Approval

a. Pre-Qualiﬁcation: An initial estimate of what you can a ord.

b. Pre-Approval: A lender-veriﬁed review of your credit and income, used to make competitive o ers.

3- Choose VA-Savvy Professionals

a. Real Estate Agents and Lenders with VA experience can guide you around common challenges and ensure compliance with VA guidelines.

VA Funding Fee vs. Private Mortgage Insurance (PMI)

Unlike conventional loans that require PMI when you put less than 20% down, VA loans charge a one-time funding fee—but no monthly mortgage insurance.

Feature

Type of Payment

Purpose Payment Duration

Typical Cost

Exemptions Available

Impact on Monthly Payment

VA Loan Funding Fee

One-time fee

Supports the VA loan program

Paid once at closing or rolled into loan

0.5%–3.3% (varies by usage & down payment)

Yes—for disabled veterans & surviving

Minimal if ﬁnanced

Conventional Loan PMI

Ongoing monthly premium

Protects lender from default

Monthly until 20% equity is reached

0.3%–1.5% annually

Adds to monthly payment

Tip: The funding fee can be ﬁnanced into the loan to reduce out of pocket costs at closing. And unlike PMI, many veterans qualify for a waiver.

VA Minimum Property Requirements (MPRs)

The VA loan program includes Minimum Property Requirements (MPRs) to ensure that homes ﬁnanced with a VA loan are safe, structurally sound, and sanitary. These standards are in place to protect veterans from purchasing properties that may pose health or safety risks. MPRs cover areas such as adequate heating, rooﬁng, water supply, electrical systems, and freedom from hazards like lead-based paint or pest infestations.

While not overly strict, MPRs may limit eligibility for certain ﬁxer-uppers or homes in disrepair. If a home doesn’t meet these standards, the issues must be corrected before the loan can close. Buyers interested in renovation projects should explore the VA Renovation Loan as an alternative solution.

Section 8: Understanding Fha And Conventional Loan Options

Understanding FHA and Conventional Loan Options

Choosing the right mortgage is a pivotal step in the homebuying journey. While VA loans o er significant benefits for military families, understanding alternative options like FHA and Conventional loans is essential, especially when VA eligibility is not applicable or when specific financial situations arise. Below is an in-depth look at these loan types, their requirements, pros and cons, and how they compare.

FHA Loans (Federal Housing Administration)

Overview

FHA loans are government-backed mortgages designed to assist borrowers with lower credit scores and minimal down payments. They are particularly popular among ﬁrst-time homebuyers.

Key Features

Minimum Credit Score: 580 for a 3.5% down payment; 500–579 requires a 10% down payment.

Down Payment: As low as 3.5% for credit scores ≥580.

Debt-to-Income Ratio (DTI): Up to 50% in some cases.

Mortgage Insurance: Requires both an upfront mortgage insurance premium (UFMIP) of 1.75% and an annual premium ranging from 0.15% to 0.75%, depending on loan terms and down payment.

Loan Limits: Varies by location; for 2025, the ﬂoor is $524,225, and the ceiling is $1,209,750 for a one-unit property.

Occupancy: Must be the borrower's primary residence.

Pros:

Lower credit score requirements. Smaller down payments.

Cons:

Mandatory mortgage insurance premiums. Stricter property standards.

Mortgage insurance cannot be canceled unless reﬁnancing into a non-FHA loan.

Note: Ideal for ﬁrst-time homebuyers or those with less-than-perfect credit and limited savings.

Conventional Loans

Overview

Conventional loans are not insured by the federal government and typically have stricter requirements. They are suitable for borrowers with strong credit proﬁles and the ability to make larger down payments.

Minimum Credit Score: 620; higher scores (740+) may qualify for better rates.

Down Payment: As low as 3% for ﬁrst-time homebuyers through programs like Fannie Mae's HomeReady or Freddie Mac's Home Possible.

Debt-to-Income Ratio (DTI): Typically up to 45%; some lenders may allow up to 50% with compensating factors.

Private Mortgage Insurance (PMI): Required if down payment is less than 20%; can be canceled once 20% equity is achieved.

Loan Limits: For 2025, the conforming loan limit is $806,500 for a one-unit property in most areas; higher in designated high-cost areas.

Occupancy: Can be used for primary residences, second homes, or investment properties.

Pros:

Potentially lower interest rates for well-qualiﬁed borrowers.

PMI can be removed once su cient equity is built. Greater ﬂexibility in property types and occupancy.

Cons:

Stricter credit and income requirements. Higher down payment needed to avoid PMI.

Note: Ideal for borrowers with strong credit, stable income, and the ability to make a larger down payment.

Loan Product Comparison Chart Conclusion

Understanding the distinctions between FHA and Conventional loans is crucial in selecting the mortgage that best aligns with your financial situation and homeownership goals. FHA loans o er accessibility for those with lower credit scores and limited savings, while Conventional loans provide benefits for those with stronger financial profiles. Consulting with a mortgage professional can provide personalized guidance to navigate these options e ectively.

Section 9: Finding Support & Financial Assistance

Finding Support & Financial Assistance

Down Payment and Closing Cost Assistance Programs

While VA loans do not require a down payment, buyers may still face signiﬁcant closing costs. Many local, state, and nonproﬁt organizations o er grants or low-interest loans to cover:

Closing costs

While VA loans do not require a down payment, buyers may still face signiﬁcant closing costs. Many local, state, and nonproﬁt organizations o er grants or low-interest loans to cover:

Escrow and prepaid items

Energy-e ciency improvements

Homebuyer education classes

Examples of Assistance Programs

State Housing Finance Agencies (HFAs) often provide military-speciﬁc beneﬁts.

National Homebuyer Fund (NHF) and Chenoa Fund provide down payment support.

Local government programs may o er grants for veterans buying in designated zones or revitalization areas.

Tip: Start your search at DownPaymentResource.com or ask a VAREP counselor to help identify local options.

State and Local Veteran Homebuyer Programs

These may include

Property tax exemptions or credits

Reduced mortgage rates

State-funded down payment grants

Assistance for disabled veterans and ﬁrst responders

Texas Veterans Land Board (VLB) – Low-interest loans and land purchase programs

CalVet Home Loans (California) – State-funded mortgages for eligible veterans

Florida Housing's Salute Our Soldiers Program – A ordable housing and DPA grants for veterans

Note: Contact your State Department of Veterans A airs or visit nasdva.us for a list of state beneﬁts.

Tip: VAREP Counseling and Education Services. As a HUD-Approved Housing Counseling Agency and Veteran Service Organization, VAREP o ers no-cost, mission-driven support designed speciﬁcally for the military and veteran community.

VAREP Services Include

Credit & Budget Counseling – HUD-certiﬁed, 1-on-1 sessions to build ﬁnancial readiness

Homebuyer Education Workshops – Required for many assistance programs

VA Loan Readiness Evaluations – Customized planning to meet loan approval standards

Debt Management Plans – For buyers rebuilding their ﬁnances

Default Prevention Support – Helping veterans avoid foreclosure and preserve homeownership

Note: These services are always unbiased, conﬁdential, and focused on your long-term success—not on selling you a loan or home.

Housing Grants for Disabled Veterans

The VA provides special grants to help disabled veterans modify, build, or buy homes that meet their needs:

1- Specially Adapted Housing (SAH) Grant

Helps veterans with serious service-connected disabilities build or remodel a home for accessibility

2- Special Housing Adaptation (SHA) Grant

Available for certain disabilities (e.g., vision loss, severe burns)

Can be used on a family member’s home

3- Temporary Residence Adaptation (TRA) Grant

For temporary modiﬁcations to a family member’s home while the veteran is living there

Grant amounts vary depending on SAH or SHA eligibility

Tip: Visit va.gov/housing-assistance/disability-housing-grants or contact a VAREP counselor to get help with your application.

Some employers—especially federal agencies, defense contractors, and public safety departments—o er housing beneﬁts such as:

Employer-assisted housing (EAH) grants

Relocation or closing cost reimbursements

Preferred lending or Realtor partnerships

Tip: Check with your Human Resources department or Employee Assistance Program (EAP) to see what’s o ered. If you're a transitioning servicemember, explore Skill Bridge and TAP program partners that include housing support.

Summary

You don’t have to be ﬁnancially perfect to become a homeowner. Many programs exist to bridge the gap between your current situation and your homeownership goals. The key is knowing what’s available—and working with housing professionals who understand your military experience. VAREP is here to connect you to the tools and guidance that will help you succeed.

Section 10: The Nar Settlement And Impact On Homebuyers

The NAR Settlement and Impact on Homebuyers

In March 2024, the National Association of REALTORS® (NAR) reached a $418 million settlement to resolve litigation concerning broker commissions.

Mandatory Written Agreements

Before touring any home, buyers must sign a written agreement with their real estate agent. This agreement should clearly outline the services provided and the compensation structure.

Negotiable Agent Compensation

Buyers now have the opportunity to negotiate their agent's commission. Compensation can be paid directly by the buyer, requested from the seller, or structured as a combination of both.

MLS Compensation Listings Removed

O ers of compensation to buyer brokers are no longer displayed on Multiple Listing Services (MLS). This change aims to increase transparency and reduce potential conﬂicts of interest.

Jean Scott Homes

VA Loan Considerations:

VA loans prohibit buyers from paying certain fees, including real estate agent commissions. Buyers using VA loans should ensure that any agent compensation is structured appropriately, often by requesting the seller to cover these costs.

National Association of REALTORS®

Budgeting for Additional Costs

With the shift in commission structures, buyers may need to budget for potential out-of-pocket expenses related to agent compensation.

Importance of Clear Communication

Open discussions with your real estate agent about compensation and services are crucial.

Ensure all agreements are documented and understood before proceeding with home tours.

Section 11: The Homebuying Process

The Homebuying Process

Embarking on the journey to homeownership can seem daunting, especially for ﬁrst-time military or veteran buyers. However, by breaking down the process into manageable steps, you can navigate each phase with conﬁdence. This guide provides a detailed roadmap from pre-approval to closing, ensuring you're well-equipped to make informed decisions throughout your homebuying experience.

Pre-Approved: Start with a VA-Experienced Lender

Why Pre-Approval Matters

Budget Clarity: Understand how much you can a ord, considering your income and expenses.

Competitive Edge: Demonstrates to sellers that you're a serious and qualiﬁed buyer.

Issue Identiﬁcation: Uncovers potential credit or ﬁnancial issues early in the process.

Pre-Approval Requirements:

Recent pay stubs or Leave & Earnings Statement (LES)

Bank statements

Credit report (soft or hard inquiry)

Certiﬁcate of Eligibility (COE) for VA loan users

Tip: Choose a lender familiar with VA loans and military compensation structures, including BAH, BAS, and disability pay. Check with VAREP housing counselor if you need a referral.

Choose the Right Real Estate Agent

A real estate agent experienced with VA loans can signiﬁcantly streamline your homebuying process.

Key Qualities to Look For

Familiarity with VA loan requirements, such as property condition standards. Understanding of the VA Escape Clause and its importance.

Experience with military timelines, deployments, and Permanent Change of Station (PCS) implications.

Tip: Check with VAREP housing counselor if you need a referral.

Search for the Right Home

When house hunting, align your search with your needs, budget, and military lifestyle.

Considerations

Proximity to base or workplace.

Quality of local schools (if applicable).

Neighborhood safety and amenities.

Potential for future resale or rental, especially considering PCS ﬂexibility.

LendingTree

Note: Create a checklist distinguishing between "must-haves" and "nice-to-haves" to stay focused during your search.

Make an O er and Negotiate Terms

Once you ﬁnd a suitable home, your agent will assist in crafting a competitive o er.

Key Components

Proposed purchase price.

Contingencies, such as inspection, ﬁnancing, and VA appraisal.

Seller concessions, like covering closing costs.

Inclusion of the VA Escape Clause, which allows you to withdraw if the property's appraised value is lower than the purchase price.

Note: Remember, negotiation is part of the process. Don't hesitate to request repairs, credits, or assistance with fees.

Schedule a Home Inspection

A thorough home inspection is crucial to identify any underlying issues with the property.

Inspection Focus Areas

Roof, HVAC, plumbing, and electrical systems.

Foundation and structural integrity.

Signs of mold, pests, or water damage.

Note: The VA appraisal is not a substitute for a home inspection. Always hire a qualiﬁed inspector to conduct a comprehensive evaluation.

Complete the VA Appraisal

For VA loans, a VA-approved appraiser assesses the property to ensure it meets the VA's Minimum Property Requirements (MPRs).

Appraisal Outcomes

Pass: Proceed with ﬁnancing.

Repairs Needed: Seller may need to address issues before closing.

Low Appraisal: You may renegotiate the price or consider other options.

Note: The appraisal protects your investment by ensuring the property is safe, sound, and sanitary.

After your loan clears underwriting, you'll receive a Closing Disclosure outlining ﬁnal costs.

Closing Day Activities

Review and sign loan documents and legal paperwork.

Pay any out-of-pocket costs, unless covered by the seller.

Receive the keys to your new home!

Note: Carefully review all documents and don't hesitate to ask questions before signing.

Understand Your Closing Costs and Fees

While VA loans often waive PMI and down payments, closing costs still apply.

Typical Closing Costs Include Title insurance.

Recording fees.

Appraisal and inspection fees.

Lender origination charges.

VA Funding Fee (unless exempt).

Note: Closing costs typically range from 2% to 5% of the loan amount. Seller concessions and grants can help o set these expenses.

Summary

Navigating the homebuying process requires preparation, trusted guidance, and the right resources. Leveraging your VA loan beneﬁts and collaborating with experienced professionals can make your journey to homeownership smooth and rewarding.

Section 12: Real Estate Savings With The Mvp Heroes Housing Network

What is the MVP Heroes Housing Network?

The MVP Heroes Housing Network (MVPHHN) is a national initiative powered by the Veterans Association of Real Estate Professionals (VAREP). It connects military and veteran heroes with a trusted team of certiﬁed real estate, lending, and business professionals—known as MVP Ambassadors—who are trained to understand and serve your unique needs throughout the homebuying process.

Who Qualiﬁes?

The program is open to:

Active-duty servicemembers

Veterans of all eras

Reservists and National Guard

Gold Star and surviving spouses

To be eligible for MVP program beneﬁts, you must:

Complete the onboarding process

Connect with your local MVP team

Be represented at closing by an MVP Real Estate Ambassador

For additional savings, work with an MVP Lender and MVP Business Ambassadors

Post-closing payments are not available in Alabama, Alaska, Iowa, Kansas, Mississippi, Missouri, Oklahoma, Oregon, Tennessee, and Louisiana. However, a credit at closing is permitted in all 50 states. Actual savings vary based on the services used, home price, property type, and commission structure. Real Rewards Disclosure

The MVP Di erence

The only nonproﬁt HUD-approved Veteran Service Organization focused on homeownership MVP Ambassadors are vetted, trained, and certiﬁed

A portion of each transaction helps fund programs for heroes in need

We advocate for military and veteran housing rights in Washington, D.C.

Your MVP Ambassador will disclose all available savings in writing—no hidden fees, no surprises.

We’ve walked in your boots. We’ve got your six. And we’ll help you ﬁnd your way home.

Section 13: Life After Closing Ownership, Protection, And Planning

Life After Closing — Ownership, Protection, and Planning

Congratulations—you’re o cially a homeowner! But the journey doesn’t end at closing. Now begins a new chapter: maintaining your property, protecting your investment, and navigating your financial and personal responsibilities. For military families, this also includes planning for deployments, PCS orders, and leveraging VA-specific benefits. This section guides you through essential tasks and long-term strategies to thrive as a homeowner.

Setting Up and Settling In

Key First Steps

Set up or transfer utilities (electric, water, gas, trash, internet).

Update your mailing address with USPS and important accounts.

File for your Homestead Exemption (if available in your state) to reduce property taxes.

Tip: Create a “New Home Setup” folder with contact info, utility account numbers, and service providers.

Home Maintenance and Emergency Planning

Preventive Maintenance is Key:

Seasonal Checklist: HVAC tune-ups, gutter cleaning, water heater ﬂushing, pest control, and landscaping.

Annual Tasks: Test smoke and CO detectors, review insurance coverage, and assess big-ticket repair needs.

Tip: Use the VAREP Home Maintenance Tracker to stay organized and ahead of repairs.

Emergency Preparedness

Make a family emergency plan (include military deployment contingencies). Store important documents in a ﬁreproof safe. Prepare an emergency kit with food, water, ﬁrst-aid, and power backup.

Getting Involved in Your Community

Attend HOA or neighborhood meetings.

Introduce yourself to neighbors.

Connect with local veteran resources and community groups.

Explore school district programs or city services available to homeowners.

Tip: Strong community ties provide safety, connection, and support—especially during transitions.

Navigating Financial Hardship

If you're facing payment challenges due to job loss, deployment delays, or unexpected expenses:

Contact your loan servicer as soon as possible.

Explore VA-backed loss mitigation options (e.g., forbearance, repayment plans, loan mods).

Work with a HUD-approved housing counselor (like VAREP) for conﬁdential help.

Tip: VAREP provides foreclosure prevention counseling—free, nonjudgmental, and veteran-informed.

Reﬁnancing Options

To lower your interest rate or monthly payment

To tap into home equity responsibly

To remove a co-borrower or change loan type

Options for Veterans

VA IRRRL: A streamlined Interest Rate Reduction Reﬁnance with no appraisal or income check.

VA Cash-Out Reﬁnance: Turn equity into cash for repairs or debt payo .

Conventional Reﬁnance: Useful when transitioning away from VA loan terms.

Tip: Always consult a VA-approved lender to ensure reﬁnancing aligns with your long-term goals.

VA Loan Assumption

Allows another qualiﬁed buyer to assume your VA loan (including its interest rate).

Ideal in high-rate markets.

Can be a selling advantage.

Ensure your VA entitlement is restored if your loan is assumed.

PCS Planning

Summary If you're relocating, weigh renting vs. selling: Consider market trends, equity, tax impacts, and family needs.

Use the VAREP PCS Seller Decision Worksheet to guide your next move.

Homeownership is a long-term journey—not just a one-time transaction. With proper planning, trusted support, and smart decision-making, you can build ﬁnancial stability and protect your investment. Whether you're planning for PCS orders, considering reﬁnancing, or just need guidance—VAREP is here for you, long after the keys are in your hand.

Appendix A: Basic Real Estate Glossary Of Terms

A: Basic Real Estate Glossary of Terms

Amortization: The gradual repayment of a mortgage loan through regular payments over time.

Appraisal: An expert assessment of a property's market value, often required by lenders.

Assessed Value: The valuation placed on a property by a public tax assessor for purposes of taxation.

Assumption: The transfer of an existing mortgage from the current owner to a buyer.

Balloon Mortgage: A mortgage with low initial payments that require a large lump-sum payment at the end of the term.

Broker: A licensed individual who arranges real estate transactions between buyers and sellers.

Closing: The ﬁnal step in a real estate transaction where the title is transferred to the buyer.

Closing Costs: Fees and expenses, over and above the price of the property, incurred by buyers and sellers during the transfer of ownership.

Contingency: A condition that must be met for a real estate contract to become binding.

Deed: A legal document that conveys ownership of property from one party to another.

Down Payment: An initial payment made when purchasing a property, typically a percentage of the total price.

Earnest Money: A deposit made to a seller showing the buyer's good faith in a transaction.

Escrow: A ﬁnancial arrangement where a third party holds and regulates payment of funds required for two parties involved in a given transaction.

Fixed-Rate Mortgage: A mortgage with an interest rate that remains the same for the life of the loan.

Foreclosure: The legal process by which a lender takes control of a property due to the owner's failure to make mortgage payments.

Good Faith Estimate (GFE): An estimate of the fees and costs associated with a mortgage loan, provided by the lender.

Home Inspection: An examination of the condition of a real estate property, usually performed in connection with its sale.

Homeowners Association (HOA): An organization in a subdivision, planned community, or condominium that makes and enforces rules for the properties within its jurisdiction.

Interest Rate: The proportion of a loan charged as interest to the borrower, typically expressed as an annual percentage.

Jumbo Loan: A mortgage loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency.

Lien: A legal right or interest that a lender has in the borrower's property, lasting until the debt obligation is satisﬁed.

Loan-to-Value Ratio (LTV): A ﬁnancial term used by lenders to express the ratio of a loan to the value of an asset purchased.

Appendix

Mortgage: A legal agreement by which a bank or creditor lends money at interest in exchange for taking title of the debtor's property.

Mortgage Insurance (MI): Insurance that protects the lender in case the borrower defaults on the loan.

Note: A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a speciﬁed period.

Origination Fee: A fee charged by a lender for processing a new loan application.

Pre-Approval: A preliminary evaluation by a lender that determines whether a potential borrower qualiﬁes for a loan.

Private Mortgage Insurance (PMI): Insurance that protects the lender if the borrower defaults on the loan, typically required when the down payment is less than 20%.

Quitclaim Deed: A legal instrument that is used to transfer interest in real property.

Reﬁnancing: The process of replacing an existing mortgage with a new loan, typically with better terms.

Short Sale: A sale of real estate in which the net proceeds fall short of the debts secured by liens against the property.

Survey: A process conducted to determine property lines and locate features of the property.

Title: A legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or equitable interest.

Title Insurance: A form of indemnity insurance that protects the holder from ﬁnancial loss sustained from defects in a title to a property.

Underwriting: The process by which a lender decides whether a potential creditor is creditworthy and should receive a loan.

VA Loan: A mortgage loan in the United States guaranteed by the U.S. Department of Veterans A airs.

Walk-Through: A ﬁnal inspection of a property by the buyer before closing.

Appendix B: Permanent Change Of Station (Pcs) Move Checklist

Initial Steps After Receiving Orders

Review o cial orders for reporting date, entitlements, and dependent status

Schedule a transportation brieﬁng with your local Transportation O ce

Choose your move type: Government-managed or Personally Procured Move (PPM)

Notify chain of command and inform family members

Create a PCS Binder with

Orders, IDs, passports, birth/marriage certiﬁcates

Medical/dental records, insurance policies

Car titles/registrations, housing documents

Travel reservations, inventory lists

Housing Transition

Research and apply for on-base or o -base housing at the new duty station

Schedule move-out inspection and notify landlord if renting

Set up utility disconnection/connection as needed

Consider pros and cons of on-post vs. o -post housing (BAH, commuting, waitlists)

Moving & Shipment Logistics

Inventory household goods (photos, serial numbers, condition)

Schedule movers or coordinate your PPM with the Transportation O ce

Understand shipment options:

HHG (Household Goods)

UAB (Unaccompanied Baggage)

NTS (Non-Temporary Storage)

Book temporary lodging if necessary

Sort and dispose of unwanted items

Vehicle & Pet Logistics

For OCONUS: Coordinate vehicle shipment

(DoD may cover 1 vehicle)

Complete vehicle maintenance and update registration and insurance

Prepare pet documentation and check airline/quarantine requirements

Review your PCS entitlements: DLA, TLE, TLA, per diem

Create a move-speciﬁc budget and track all expenses for reimbursement

Consider advance pay if needed

Update direct deposit and banking details

Legal & Administrative Tasks

Update or create wills, powers of attorney, and other legal docs

Submit a USPS change of address form and update with banks, insurance, etc.

Family & Educational Transitions

Contact a School Liaison O cer at your new installation

Transfer school records and IEPs if applicable

Notify childcare providers and prepare kids emotionally for the move

Medical Readiness

Complete all check-ups and obtain medical/dental records

Transfer prescriptions and enroll in TRICARE at the new location

Packing & Essentials

Clearly label all boxes by room and contents

Pack a “ﬁrst-day” essentials box (clothes, toiletries, important docs)

Personally carry valuables, legal docs, and medications

Properly dispose of prohibited items (cleaning chemicals, perishables)

Final Preparations & Travel

Clean and prepare your home for move-out inspection

Conduct a final walkthrough to avoid leaving items behind Confirm travel plans (flights, hotels, in-processing location)

Gather documents needed for check-in at new duty station

Use Your Resources

Visit Plan My Move to generate a personalized PCS checklist

Reach out to Military OneSource, AAFMAA, or your installation's relocation o ce for support

Appendix C: Deployment Readiness Checklist

Financial Readiness

Review and update your deployment budget (include hazard pay, FSA, etc.)

Set up or conﬁrm automatic bill payments and allotments

Establish or replenish an emergency fund (3–6 months minimum)

Notify your ﬁnancial institutions of deployment to prevent fraud alerts

Enroll in the Savings Deposit Program (SDP) if eligible

Evaluate or update your insurance coverage (SGLI, auto, renters, home)

Plan for tax season; use military tax assistance programs

Ensure spouse/joint account holder has bank access and is familiar with ﬁnancial management

Legal & Documentation

Update or create your Will, Living Will, and Power(s) of Attorney (general and speciﬁc)

Update beneﬁciary designations on life insurance and retirement accounts

Ensure a current Family Care Plan is ﬁled (if applicable)

Secure and organize all important legal documents in an accessible location for your designee

Medical & Health Readiness

Complete all required medical and dental appointments

Ensure vaccinations and immunizations are current

Renew or reﬁll prescriptions and arrange for mail-order delivery if needed

Update TRICARE information and enroll eligible family members

Prepare a Medical Power of Attorney if desired

Housing & Property

Notify landlord or mortgage company of deployment (SCRA protections may apply)

Suspend or transfer utilities and subscriptions as needed

Review and update homeowners or renters insurance

Arrange for property maintenance and notify a trusted neighbor or property manager

Secure your home and check functionality of security systems

Vehicle Preparation

Decide to store or designate someone to use and maintain your vehicle

Complete routine maintenance, top o ﬂuids, and check tire pressure

Ensure registration, insurance, and inspection are current

Provide designated driver with written permission and a copy of insurance

Stock an emergency kit (jumper cables, spare tire, ﬁrst aid, etc.)

Ensure your military ID, passport, and any other required travel documents are valid

Secure personal valuables or store them with a trusted individual

Notify employers, schools, or licensing agencies of your deployment, if applicable

Communication Plan

Create a communication schedule with family and key contacts

Set up reliable communication tools (email, phone, apps, video)

Educate family/friends on OPSEC (Operational Security) guidelines

Share unit contact information, mailing address, and blackout communication policies

Suspend or forward mail using USPS hold/forwarding services

Write down any personal goals or deployment projects

Emergency Planning

Develop and review your family emergency evacuation plan

Provide family with key emergency contacts (unit, Red Cross, support programs)

Make sure family knows the location of essential documents

Conduct practice drills for various emergency scenarios

Deployment Logistics & Practical Prep

Attend pre-deployment brieﬁngs and required trainings

Conﬁrm travel arrangements and deployment orders

Pack personal items: uniforms, toiletries, comfort items, civilian clothes

Suspend or cancel unnecessary subscriptions or services

Store personal belongings securely or with a trusted contact

Appendix D: Rent Vs. Buy Checklist

Financial Considerations

Question

Do I have enough savings for upfront costs?

Can I a ord ongoing monthly costs?

First month + deposit

Rent + renters insurance

Is my credit score su cient? Usually more ﬂexible

Will BAH cover my housing costs?

Are my income and employment stable?

Have I reviewed my VA loan eligibility?

Market Time & Conditions Question

Are rent prices rising in my area?

Are home prices & interest rates high or low?

Is the local housing market volatile?

Often yes

Ideal for variable income

Not applicable

VA loans may require $0 down, but closing costs still apply

Mortgage, taxes, insurance, maintenance

620+ for most VA lenders

Usually, but check local market

Steady income preferred

May o er $0 down, no PMI

A ects a ordability

May make renting better short-term

Easier to exit lease

Might favor buying instead

Favorable buying when low

Buying may carry market risk

Question Rent Buy

Have I evaluated on-base housing availability?

Do I want to live o -base or in the community?

Am I relocating OCONUS or temporarily?

Time & Stability

Question

Do I want to avoid maintenance & repairs?

Do I want to customize or renovate my space?

Do I have or plan to have pets?

Do I value ﬂexibility over long-term investment?

Personal Readiness & Lifestyle Question

Do I want to avoid maintenance & repairs?

Often the most convenient Not applicable

More rental options

Renting likely best

Landlord handles it

May gain home equity

Selling abroad may be di cult

May require approval or fees More freedom

Yes

Landlord handles it

Do I want to customize or renovate my space? Limited

Do I have or plan to have pets?

Do I value ﬂexibility over long-term investment?

May require approval or fees

May prefer buying later

Homeowner is responsible

over upgrades

freedom

Yes May prefer buying later

Question

Have I reviewed the lease for restrictions and penalties?

Do I understand HOA rules or zoning if buying?

Equity & Investment Potential

Question

Do I want to build equity in a property?

Do I want to beneﬁt from rising home values?

Do I want ﬁxed monthly payments?

Tax & Financial Implications

Question

Required

Not applicable

May a ect what you can do

No equity gained

Rent may rise annually

Do I want access to housing tax deductions (e.g., mortgage interest)? No

If renting out a home later, am I prepared to manage rental income taxes?

Decision Tip

Not applicable

Mortgage builds ownership over time

Potential long-term appreciation

Fixed-rate mortgages o er stability

Yes—may reduce tax burden

Must report rental income, expenses

Renting may be better if you need ﬂexibility, plan to move soon, or aren’t ﬁnancially ready to commit.

Buying may be better if you plan to stay 5+ years, and want to build long-term wealth.

Appendix E: Homebuyer Readiness Checklist

Financial Readiness

Rent vs. Buy Analysis Completed

Compared monthly costs, stability, and goals over time.

Credit Report Reviewed and Corrected

Reviewed report from AnnualCreditReport.com.

Disputed errors and addressed any outstanding collections.

Credit Score Meets Loan Requirements

Aim for 620+ for VA loans (varies by lender).

Lower scores may need more documentation or rehabilitation. My credit score is__________

Debt-to-Income Ratio (DTI) Evaluated

Ideal DTI for VA loans: 41% or less, but compensating factors may apply. My DTI is___________

Budget and Emergency Fund in Place

Minimum 1–3 months of expenses saved (6+ months preferred).

Account for utilities, furnishings, maintenance, and move-in costs.

Stable and Documented Income

W-2s, LES (for active duty), or self-employment documentation for 2+ years.

Loan Readinesst

Pre-Approval Secured from VA-Experienced Lender

Conﬁrms loan eligibility, amount, and strengthens o er.

Certiﬁcate of Eligibility (COE) Obtained (VA Buyers Only)

Veriﬁes entitlement to use VA loan beneﬁt.

Understand Down Payment, Funding Fee, and Closing Costs

Even with $0 down, plan for other out-of-pocket costs.

Reviewed VA Loan Beneﬁt Features

No PMI, competitive rates, foreclosure protections, reusable beneﬁt.

Attended Financial Education or Counseling Session

Recommended: a HUD-approved housing counselor (like VAREP). Covers budgeting, VA loan education, and personalized guidance.

Understands Local Market Conditions

Researched prices, interest rates, and property types in desired area.

Identiﬁed Personal Priorities & Deal Breakers

Must-haves vs. nice-to-haves for home size, location, schools, etc.

Discussed Timing and Logistics (PCS, ETS, Family Needs)

Especially important for active duty or transitioning servicemembers.

Legal Readiness (POA, Title, Trusts if Applicable)

Consider Power of Attorney if deployed or unavailable during closing.

Seek Housing Counseling Support

Connect with a HUD-Approved Housing Counseling Agency like VAREP.

VAREP can help with

Budgeting

Credit readiness

Understanding the VA process Gather documents

Finding and applying for closing-costs grants

VA savvy real estate and lending professionals

Navigating PCS moves, deployments, or transitions

Visit www.varep.net

Appendix F: Va Loan Pre-Purchase Checklist

Conﬁrm VA Loan Eligibility

Request your Certiﬁcate of Eligibility (COE) at VA.gov or ask your lender to help.

Who may qualify

Active duty

Veterans

National Guard & Reserves

Certain surviving spouses

Transitioning servicemembers

Some cadets/midshipmen and Public Health/NOAA o cers

Gather Service Documentation

Veterans: DD-214 (Member 4 copy)

Active Duty: Latest LES (Leave & Earnings Statement)

National Guard/Reserves: NGB-22 or Points Statement (RPAM)

Surviving Spouse: Dependency and Indemnity Compensation (DIC) documents

Consider preparing a Power of Attorney (POA) if deployed or unavailable for closing

Check Credit and Strengthen Your Proﬁle

Access your free credit report at AnnualCreditReport.com

Aim for a credit score of 620+, though some lenders may be ﬂexible

Dispute inaccuracies and reduce outstanding debt

Use military-speciﬁc tools (e.g., CFPB's servicemember resources)

Document Income and Assets

Pay stubs (30 days)

ax returns (2 years; or proﬁt/loss statements for self-employed)

W-2s / 1099s

Bank statements (2 months)

Proof of other income (BAH, retirement, disability compensation, etc.)

Explore Your VA Loan Beneﬁts

$0 down payment (in most cases)

No private mortgage insurance (PMI)

Competitive interest rates

Ability to reuse the beneﬁt

Strong protections against foreclosure

Understand the VA Funding Fee

Review current VA funding fee rates

You may be exempt if you receive VA disability, are a Purple Heart recipient, or are a surviving spouse

Ask about options to ﬁnance the fee into your loan

Connect with a VA-Experienced Lender

Get a pre-approval letter to strengthen your o er

Ensure they understand VA appraisal, residual income, and underwriting guidelines

Ask for a Loan Estimate to compare fees

Choose a VA-Savvy Real Estate Agent

Find an agent familiar with:

VA appraisal requirements

PCS timelines and BAH considerations

Local veteran programs and concessions

Ask for referrals from other VA buyers

Plan for Closing Costs & Moving Expenses

VA appraisal

Title & escrow

Optional but highly recommended home inspection

Utility deposits

Moving costs

New furniture or maintenance needs

Seek Housing Counseling Support

Connect with a HUD-Approved Housing Counseling Agency like VAREP.

VAREP can help with

Budgeting

Credit readiness

Understanding the VA process

Gather documents

Finding and applying for closing-costs grants

VA savvy real estate and lending professionals

Navigating PCS moves, deployments, or transitions

Visit www.varep.net

Appendix G: Needs Vs. Wants Worksheet

Instructions

Review each category and feature listed below. Determine whether each feature is a "Must-Have" or a "Nice-to-Have" based on your personal needs and preferences. Use the "Notes" section to add any speciﬁc comments or considerations.

Home Features

Need Want Notes

Category Need Want Notes

Proximity to work/school/base

Public transportation access

Quality of local schools

Low crime rate

Proximity to healthcare facilities

Nearby parks & recreational areas

Shopping and dining options

Noise levels

Walkability score

Financial Considerations

Personal & Family Needs

Category Need Want Notes

Pet-friendly accommodations

Accessibility features

Space for extended family

Proximity to support networks

Childcare facilities nearby

Opportunities for community engagement

Cultural or religious community nearby

Future Considerations

Category Need Want Notes

Low crime rate (based on local crime data)

Sex o ender registry check (Megan’s Law)

Well-lit streets and sidewalks

Active neighborhood watch or patrol

Presence of security cameras or surveillance

Gated community or controlled access

Close proximity to police/ﬁre station

Low tra c speeds/ safety signage

Environmental risk zone (ﬂood/ﬁre/hazard)

Good visibility from surrounding homes

Appendix H: Homebuying Process Checklist

Prepare to Buy

Review your credit report and score (aim for 620+ for VA loans)

Create a budget and determine how much home you can a ord

Build or verify your emergency savings (at least 1–3 months of expenses)

Gather important documents: pay stubs, W-2s, tax returns, bank statements

Learn about the VA loan beneﬁt or other programs you qualify for

Attend a homebuyer education session (recommended)

Get Pre-Approved

Choose a VA-experienced lender (or another qualiﬁed lender)

Apply for mortgage pre-approval and receive a pre-approval letter

Obtain your Certiﬁcate of Eligibility (COE) for VA loans

Understand your potential loan amount, estimated monthly payment, and closing costs

Find Your Home

Hire a VA-savvy real estate agent

Create a list of must-haves vs. nice-to-haves

Tour homes in your target area and compare prices, schools, amenities

Research neighborhoods for safety, commute, and future growth

Make an O er

Review the market with your agent to make a competitive o er

Submit your o er with contingencies (inspection, ﬁnancing, appraisal)

Negotiate terms with the seller, if needed

Sign the purchase agreement

Due Diligence Period

Schedule a home inspection and review the report

Negotiate any repairs or seller credits based on the ﬁndings

Lender orders the appraisal (VA appraiser if using VA loan)

Ensure the home meets VA’s Minimum Property Requirements (if applicable)

Finalize Your Loan

Provide any remaining documents to your lender

Lock in your interest rate

Receive ﬁnal loan estimate and compare closing disclosures

Schedule your closing date

Conduct a ﬁnal walk-through of the property

Attend the closing meeting and sign all legal documents

Pay closing costs (if any) and down payment (if required)

Receive the keys and deed—you’re now a homeowner!

After Closing

Set up utilities and home services

Change your address with USPS and update records

Save your closing documents in a secure location

Prepare for property taxes and ongoing maintenance

Appendix I: Post-Purchase Checklist

Secure Your Home

Change the locks and garage codes

Test and/or replace smoke and carbon monoxide detectors

Set up or transfer your home security system (if applicable)

Create or update your home emergency kit

Identify utility shuto valves and circuit breakers

Organize, Scan, and Save Important Documents

Closing disclosure and mortgage agreement

Deed and title documents

Home warranty and appliance manuals

Property survey, inspection, and appraisal reports

Update Services and Addresses

Electricity, gas, water, trash, internet

USPS, banks, credit cards, insurance, VA, DFAS, DMV, employer

Schedule Preventive Maintenance

Create a maintenance calendar (monthly, seasonal, annual)

Schedule HVAC inspection and duct cleaning

Service water heater, gutters, plumbing, and roof if needed

Review pest control and landscaping services

Build a Homeowner Tool Kit

Buy or organize basic tools (hammer, screwdriver set, pliers, drill, ladder, etc.)

Assemble emergency repair supplies (ﬂashlight, batteries, ﬁre extinguisher)

Review and Adjust Insurance

Review your homeowner’s insurance policy annually

Add coverage if needed (ﬂood, earthquake, umbrella, etc.)

Update your Servicemembers’ Group Life Insurance (SGLI) and beneﬁciary info if applicable

Prepare for Taxes and Escrow

Understand your property tax due dates (check with county assessor)

Review your escrow account annually if you have one

Track mortgage interest and taxes for tax ﬁling

Claim your homestead exemption if eligible

Create a Long-Term Plan

Create a monthly housing budget (mortgage, utilities, maintenance)

Set up a home repair/emergency savings fund

Track your home equity and market value yearly

Consider future upgrades or VA renovation loan options

Stay Connected & Informed

Join your local neighborhood group or HOA

Stay updated on homeowner rights, VA loan updates, and property beneﬁts

Know your options if ﬁnancial hardship arises (loan modiﬁcation, VA assistance, HUD counseling)

Appendix J: Transitioning Servicemember

Checklist

Housing Planning & Preparation

Choose your post-service location based on employment, schools, healthcare, and family needs

Decide whether to rent or buy based on credit, budget, and expected length of stay

Research on-base transitional housing, temporary lodging, or local veteran housing programs

Understand VA home loan eligibility, funding fee exemptions, and local property tax relief (based on disability rating)

Consult a HUD-Approved Housing Counselor (e.g., VAREP) for a Transition Financial & Housing Assessment:

Budgeting, credit review, debt management

Pre-purchase planning and beneﬁt navigation

Employment & Career Transition

Begin job search early using TAP, SkillBridge, and veteran hiring networks

Attend job fairs and update your resume with civilian-friendly language

Use VA career counseling (Chapter 36) and DOL resources

Consider how job location and commute impact your housing decision

Disability & Beneﬁt Integration

File your VA disability claim early (use BDD program if eligible)

Understand how your rating a ects income, VA loan beneﬁts, and tax exemptions

Work with a Veteran Service Organization (VSO) to ensure proper claims handling

Financial Readiness

Create a post-military budget (include housing, healthcare, food, insurance, and transportation)

Save for upfront housing costs (security deposit or down payment + reserves)

Check and improve your credit score to qualify for rentals or loans

Identify long-term income sources: employment, pension, VA beneﬁts, retirement

Legal & Administrative

Update legal documents: wills, power of attorney, beneﬁciary designations

Change address with USPS, banks, insurers, VA, DFAS, and TRICARE

Know your rights under SCRA, including:

Lease termination ﬂexibility

Reduced interest rates

Protection from eviction or foreclosure

Enroll in VA Health Care (submit VA Form 10-10EZ)

Review TRICARE options (TAMP, retiree, or commercial)

Transfer medical and dental records to your new providers

Schedule ﬁnal checkups and reﬁll prescriptions before separation

Mental Health & Wellness

Connect with Vet Centers for free, conﬁdential counseling

Use programs like Make the Connection and Moving Forward for emotional support

Join local or virtual peer support groups, especially for families

Moving & Home Setup

Schedule move-out from base housing and complete ﬁnal inspection

Arrange shipment of household goods via military or commercial carriers

Set up utilities, internet, and essential services at your new residence

Learn local tenant rights and renter/homeowner responsibilities

Build Your Civilian Support Network

Reconnect with family and friends in your new area

Join veteran service organizations (e.g., VAREP, VFW, Team RWB)

Participate in community events, religious groups, or military spouse networks

Appendix K: Obtaining Your Annual Free Credit Report

Appendix G: Obtaining Your Annual Free Credit Report

Under the Fair Credit Reporting Act (FCRA), all U.S. consumers are entitled to one free credit report every 12 months from each of the three major credit bureaus: Equifax, Experian, and TransUnion.

How to Request Your Free Reports

1. Online: Visit www.AnnualCreditReport.com

2. Phone: Call 1-877-322-8228

3. Mail: Send the completed form to:

Annual Credit Report Request Service

P.O. Box 105281

Atlanta, GA 30348-5281

You can request all three reports at once or stagger them throughout the year to monitor changes.

Contact the Credit Bureaus

Equifax

Phone: 1-888-378-4329

General Inquiries:

P.O. Box 740241, Atlanta, GA 30374-0241

Disputes: P.O. Box 740256, Atlanta, GA 30374-0256

Website: www.equifax.com/personal/contact-us

Experian

Phone: 1-888-397-3742

All Inquiries: P.O. Box 4500, Allen, TX 75013

Website: www.experian.com/contact/personal-services-contacts.html

Phone: 1-800-916-8800

All Inquiries: P.O. Box 2000, Chester, PA 19016-2000 Website: www.transunion.com/customer-support/contact-us-consumers TransUnion

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