- Budget from monthly payment, not home price.
- Don’t forget to also budget for utilities, and maintenance costs when buying.
- A local recommended lender is your best point of contact for current rates, preapproval and more.
Not interested in the hit or miss on post housing? Curious about buying instead of renting? Is your goal to stay at or under your Basic Allowance for Housing (BAH)?
Look no further!
Fort Hood BAHs took a slight dip in 2016 for most grades, single Soldiers especially. This is mostly reflective of how affordable our local market is.
BAHs are designed to include utilities, and I factored in a utility estimate in the above ranges.
Your mortgage payment consists of PITI, principal, interest, taxes and insurance. Your monthly payment goes up or down depending on the rate. The “ranges” above are between a 4% interest rate and a 6% interest rate. VA loan rates are even better than 4% at the time of this writing, so it is possible you can do a little bit better than these numbers and still stay under your BAH. But good to be safe when it comes to budget numbers!
These are just some ideas regarding a budget. Of course, your budget is not dependent on your BAH alone. Multi-income households may have a bigger budget. Soldiers may be willing to spend above their BAH for better accommodation. Or, the opposite. Some may look to spend less than their BAH to save some money, or even turn their home into an investment. It is entirely up to you how you spend your money. Just be sure you are taking precautions to use your VA loan wisely and avoid becoming house poor.
Remember to budget your monthly payment first, and not your price. Your payment is what you need to afford. The correlating price may change depending on interest rates and other variables.