Can a single E5 soldier buy a house?

SSG Private RallyPoint Member — Mon, 09 Aug 2021 17:53:23 -0400

Hello all. As the title says, I am an E5 who is Single. I am currently in Korea for one year.
I am looking forward to buying a house in Washington area since my parents are there and I am under going reenlistment to PCS to Ft Lewis in APR.

I already have a VA loan preapproved but not really sure if I am able to even buy a house as an Active Duty (and Single). Even though I don't get BAH I am not too worried about paying mortgages.

Is there anyone who bought a house while in Active Duty and were Single? Looking for any further advices. Thank you.

Response by MSG Private RallyPoint Member made Aug 9 at 2021 6:23 PM

MSG Private RallyPoint Member — Mon, 09 Aug 2021 18:23:03 -0400

The issue you are going to face and need to answer before you buy that house is to find out if a single Sergeant will be granted permission to live off base without getting a statement of non-availability from the command and base housing.

So, can you buy one? Yes. Would you be allowed to live in it? That's going to depend on your command.

Response by SP5 Robert Kennedy made Aug 9 at 2021 7:20 PM

SP5 Robert Kennedy — Mon, 09 Aug 2021 19:20:07 -0400

Hey SGT, Why not? If the arithmetic (debt to income ratios) work, and if your credit scores are acceptable, you can get a 100% loan on a primary residence. That said, VA does not loan on any property that will not be your primary residence. If what you're looking to do is provide a home for your parents, you CAN allow them to live with you, but it's YOUR HOME and YOU, the owner are required to live there! Obviously, the home must be convenient to your duty station (commute able), and if you later get stationed elsewhere, It's still YOUR HOUSE (and therefore your responsibility to make the payments), but under those circumstances, you can rent it to whomever you choose.
Here's what you ought to know; The 100% (no down payment) VA loan is the best benefit that is offered to veterans. Don't screw it up. Make all your payments on time and when you move out, you CAN rent it to anyone you choose (but you're going to still be responsible for making the payments). On the other hand, if/when you decide to sell it, a VA loan can be assumed by your buyer (assuming you want to offer them that option). BUT, when you pay off a VA loan that was managed properly (good payment record), YOU CAN GET ANOTHER ONE!!! I've had 3! They're hands down the best financing on a property that a qualified veteran can get anywhere!

By the way, Credit Scores in civilian life are as important as clean weapons are in a firefight. Any fellow veterans who would be interested in knowing how the "behind the curtains" algorithms work, and how to work them, send me an email and I'll send you a free, skinny little "how to" book to inform you how to boost your scores and save a bundle on loans for the rest of your life. Just ask, [login to see]

Response by SFC Private RallyPoint Member made Aug 10 at 2021 2:15 AM

SFC Private RallyPoint Member — Tue, 10 Aug 2021 02:15:03 -0400

In theory, yes you could. If you weren't going to JBLM it might even work out. You can't afford a house in JBLM area on E5 base pay. You also can't use the VA loan unless it's your primary residence. It shouldn't take you long to make SSG as a 74D, and a lot of barracks in JBLM get over filled quickly and they push out the SGTs. At that point you'll be eligible for BAH and a VA mortgage. It will still be extremely difficult for you to secure a home in literally the hottest housing market in the US right now. Houses are selling within 72 hours after bidding wars that have the buyers going $50,000-100,000 over asking price, and what it appraises for. The VA will not loan you more than the appraisal value, so you may need to have another $50k in cash to to make up the difference

Response by CPT Private RallyPoint Member made Aug 11 at 2021 12:28 PM

CPT Private RallyPoint Member — Wed, 11 Aug 2021 12:28:28 -0400

Somewhere, out there, current or past is a crusty SFC that retired a million heir real estate tycoon that bought an additional residence every time they PCS'd and then rented it out when they moved, and just kept adding to the portfolio.

One of those crusty SFC's might have got lucky and was able to float the mortgage loans with sufficient rental income cash flows.

******
The risk of buying and not being to live in the house it the cash flow, and greatly reduce income ability of the SM doesn't get BAH.

Response by MAJ Ron Peery made Aug 11 at 2021 6:20 PM

MAJ Ron Peery — Wed, 11 Aug 2021 18:20:51 -0400

I bought a house outside of Manhattan, KS in 1990. Unless you have financial problems, I don't think there's any regulation that would hinder you. But, check with your gaining command. I was a Captain at the time, and single. I know there were some posts or units who didn't approve off post housing for lower enlisted back in the day.

Response by SGT Erick Holmes made Aug 12 at 2021 6:24 AM

SGT Erick Holmes — Thu, 12 Aug 2021 06:24:06 -0400

To my understanding (again this was many years ago) I believe that anyone can buy a house at anytime pending if there are any courses you need to take (as in if your an E-4 and below) I would caution you if you are planning to stay in for 20 plus years then I personally wouldn't buy a house since you would be moving every x amount of years. On the other hand, sounds like your a family man then I would say yes buy a house trust your family that they will take care of it and when you need that R&R then you will always have your home ready for you!

Response by Lt Col Jim Coe made Aug 12 at 2021 8:27 AM

Lt Col Jim Coe — Thu, 12 Aug 2021 08:27:38 -0400

MSG Private RallyPoint Member has a very important point. You’ll need to know if you’ll be able to actually enjoy a house you might buy. If you’re allowed to live off post, then there’s other considerations.

Lenders and sellers cannot legally discriminate against you because you are not married. So it is possible you could buy a house. Houses require lots of work for upkeep. You’ll need to decide what you’re going to do about the house when you are on deployments. The need to pay the bills and cut the grass doesn’t stop when you’re gone for weeks or months. Talk to your parents about the costs of owning a home. They may have some very important advice.

Response by SSG Bill McCoy made Aug 12 at 2021 11:53 AM

SSG Bill McCoy — Thu, 12 Aug 2021 11:53:06 -0400

Assuming your credit score is good, yes. My son, when he was still an E5, bought a brand new townhouse in Colorado Springs outside of Ft. Carson. There's various load programs not the least of which is through the VA. As a SGT, your time on the "job" will meet a lender's expectations of stability.

Response by PO2 Roy Koch made Aug 12 at 2021 12:42 PM

PO2 Roy Koch — Thu, 12 Aug 2021 12:42:17 -0400

I bought a house after I was discharged as a E-5.

Response by MSG Thomas Currie made Aug 12 at 2021 3:20 PM

MSG Thomas Currie — Thu, 12 Aug 2021 15:20:58 -0400

I bought a house as a single E6 - but that was many years ago.

Buying a house isn't a problem (assuming that you have run the numbers and can really afford the mortgage and the costs of maintaining the house).

As others have pointed out, your unit is not under any obligation to allow you to live off post. In my case the unit approved me living off post because I owned a house in the local community (yes, the unit was aware of the Chicken/Egg issue but that was OK with my unit)

Also realize that you may be deployed at any time, may be transferred, may be sent TDY, etc., and eventually you will PCS somewhere else. You need to plan for all these possibilities. Who will look after the property while you are gone - whether for a week, a month, or three years?

Look closely at whatever Home Owners Insurance you select -- nearly all policies have different rates and/or coverage depending on whether or not the property is "owner occupied" (be sure you know how your insurance company defines Owner Occupied).

Once you have narrowed your search to a particular property, be sure to obtain a copy of the deed and to research any covenants and restrictions. Is the house in an area with a Home Owners Association? What are the HOA fees? How intrusive is the HOA?

Actually talk with the neighbors before you buy a house. Ask about things like drainage and snow removal. Ask about the other neighbors. Just chat with them.

In the military we rarely think much about politics - I'm certainly not going to try to guess where you stand politically - but realize that you are buying a home in what is generally an ultra-liberal area even if you choose a neighborhood that isn't.

Response by PO1 H Gene Lawrence made Aug 13 at 2021 5:20 PM

PO1 H Gene Lawrence — Fri, 13 Aug 2021 17:20:20 -0400

Seeing as how Washington is my home state and Tacoma my home town, I will say that I am glad that I have sold my house there, moved out of state and would not be even willing to buy there again. Gov Jay Inslee and his Congress have never seen a tax increase that they haven’t loved. Many folks are being taxed out of their homes. To me, that should be a big factor for you. Besides that, the California migration has pushed up house prices and other things that impact the housing market. Caution would be my basic recommendation.