The Lowdown on BAH/BAS...
BAH (Basic Allowance for Housing) & BAS (Basic Allowance for Subsistence):
BAH and BAS are tax free income that are given to active military members. BAH CAN be used to help active military members qualify for a home and in some cases, pay your entire monthly payment. Educational BAH received from the GI Bill will not be usable to qualify for a mortgage.
Helpful Tip: BAH does change based upon the area you are located or relocating to. We have provided a BAH calculator from the VA website to help active military members that are relocating in the U.S to get a rough estimate of what to expect.
Fun Fact: Since BAH is tax free income, you are able to gross-up your BAH income by 25% to help qualify for an affordable home. For example, if you receive $2,000/month in BAH, and if we gross-up your income, your new qualifying BAH income is $2,500/month ($2,000 * 1.25%)
Do I Qualify?
As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.
- Fixed Rates
- Conforming Loans
- Jumbo & Super Jumbo Loans
- FHA, VA, & USDA Loans
- Terms from 5 to 30 Years