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, nancial, tax, or credit advice and should not be relied upon as a substitute for professional consultation with quali ed attorneys, nancial 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 nancial 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 nancial products are subject to change without notice.
VAREP is a nonpro t 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 re ect those of any government entity.
No client-counselor, duciary, 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 nancial 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 pro ciency. 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 re ect the views or policies of HUD or the U.S. Government.
Privacy and Confidentiality Statement
VAREP protects the con dentiality of all personal information shared during housing counseling or nancial education.
We do not disclose any personally identi able 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 Annual Free Credit Report
Thank you and Welcome!
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 con dently 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 bene ts you've earned.
Be sure to review Section 12, where we introduce the MVP Heroes Housing Network, a VAREP program offering 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, lled 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
• Renting vs. Buying: Making the Right Choice
• Renting may be a smarter short-term solution in cases where:
• Evaluating Financial Stability
• Understanding Credit Scores and Reports
• Budgeting for Homeownership
• Steps to Prepare
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 nances 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 bene ts—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 nancial picture. The Consumer Financial Protection Bureau (CFPB) recommends reviewing:
• Income Stability: Do you have a consistent, reliable income from military pay, retirement, VA bene ts, 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.
• 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.
Understanding Credit Scores and Reports
Your credit pro le 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 offers 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 Affordability Calculator to estimate what you can afford, but be conservative. Many financial experts recommend that your total housing costs not exceed 28%–31% of your gross monthly income.
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)
• PCS Moves and Temporary Duty (TDY)
• Deployments and Homeownership Managementt
• Utilizing BAH and BAS in Mortgage Quali cation
• Using Power of Attorney (POA) in Real Estate Transactions
• Understanding the Servicemembers Civil Relief Act (SCRA)
• Considerations for Guard, Reserve, and Dual-Military Households
• Dual-military couples must plan for
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 nancing. This section explores the most common scenarios faced by servicemembers and military families and o ers best practices for navigating them con dently 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 exibility and long-term thinking.
Key Considerations
• Equity Timeline: Buying only makes nancial 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: Con rm 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 signi cantly 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 affordability 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 speci c criteria:
VA POA Guidelines:
• POA must speci cally authorize real estate and loan transactions.
• The veteran must sign a statement con rming 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 office 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 nances.
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 veri cation.
• Deployment Activation: Sudden activations can delay or disrupt real estate closings.
Dual-military couples must plan for
• Combined income (and BAH stacking)
• Staggered deployment cycles
• Coordinated POA and guardianship planning if children are involved
Summary
Homeownership is possible—and often bene cial—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.
Transitioning Servicemembers Homebuying Considerations
SECTION 3 TRANSITIONING SERVICEMEMBERS HOMEBUYING CONSIDERATIONS
• Transitioning Servicemembers Homebuying Considerations
• Employment & Income Stability
• Budgeting for Civilian Life
• Timing Your Purchase
• Understanding VA Loan Bene ts
• Choosing the Right Location
• Work With Military-Savvy Professionals
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 veri able, 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 signi cantly 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 nancial 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 t for your family.
Tip: Research neighborhoods with strong veteran resources and economic opportunities.
Work With Military-Savvy Professionals
• 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
• Re-Entering Civilian Life
• VA Loan Underutilization: Why Education Matters
• VA Loan Misconceptions & Unconscious Bias
• Disability-Related Bene ts
• Long-Term Planning and Accessibility
• Avoiding Scams and Predatory O ers
Veteran Homebuying Considerations
Veterans face unique considerations when entering the housing market, shaped by their service history, access to bene ts, and long-term needs. Understanding these distinctions can help veterans make con dent, 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 xed 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 bene t remains signi cantly 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.
VA Loan Misconceptions & Unconscious Bias
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.
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 nancial 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.
Long-Term Planning and 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 Offers
Unfortunately, some companies target veterans with misleading re nance 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
• Who Is Eligible?
• How to Apply
• Homebuying Considerations
• Keep in Mind
• Support & Resources
• Final Thought
Surviving Spouses & Family Member Eligibility
The VA home loan bene t extends beyond veterans—it may also support surviving spouses under certain conditions. For those navigating grief and uncertainty, understanding this bene t can o er a pathway to stable housing and nancial 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.
Notes
Note: Eligibility is not automatic—you must apply and submit documentation to the VA.
How to Apply
To use the bene t, obtain a Certi cate of Eligibility (COE) by submitting:
• DD Form 214 or equivalent proof of service
• VA Form 26-1817 (for surviving spouses)
• Death certi cate
• Marriage certi cate
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 bene ts 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.
Support & Resources
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 Bene ts 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 bene t 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
• As a homebuyer and veteran, you are protected by several federal laws
• Keep your personal information safe:
• Where to Report Scams or Abuse
• Summary
Fraud Prevention & Consumer Protection
Military families and veterans are often targeted by scams, fraud, and misleading nancial products—especially after purchasing a home. Whether it’s a fake loan o er, a deceptive contractor, or an exploitative re nance scheme, being informed is your rst 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
Notes
Note: If you suspect any of your rights have been violated, contact VAREP, the CFPB, or HUD immediately.
Red Flag
"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
What It Might Indicate
Loan scam or predatory o er
Fraudulent services Illegal credit repair scam
Pressure tactic from dishonest actors
Likely phishing or scam
Keep your personal information safe:
• Only use secure websites (https://) and veri ed lenders
• Shred nancial documents before disposal
• Monitor your credit regularly at AnnualCreditReport.com
• Place fraud alerts or freezes with the credit bureaus if you suspect identity theft
• Never give out login info or wire money without con rming 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): consumer nance.gov/complaint
• Federal Trade Commission (FTC): reportfraud.ftc.gov
• State Attorney General’s Office: 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
• Key Features of the VA Loan
• Who’s Eligible?
• Preparing for the VA Loan Process
• VA Funding Fee vs. Private Mortgage Insurance (PMI)
• VA Minimum Property Requirements (MPRs)
The VA Loan — You Served, You Earned It
The VA Home Loan is one of the most valuable bene ts 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 nanced, 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. Con rm Eligibility & Request COE
a. Apply online via VA.gov, ask your lender, or get help from a HUD-approved counselor.
2. Pre-Quali cation vs. Pre-Approval
a. Pre-Quali cation: An initial estimate of what you can a ord.
b. Pre-Approval: A lender-veri ed 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.
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 nanced 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, roo ng, 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 xer-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
• FHA Loans (Federal Housing Administration)
• Conventional Loans
• Loan Product Comparison Chart
• Conclusion
Understanding FHA and Conventional Loan Options
Choosing the right mortgage is a pivotal step in the homebuying journey. While VA loans o er signi cant bene ts for military families, understanding alternative options like FHA and Conventional loans is essential, especially when VA eligibility is not applicable or when speci c nancial 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 rst-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 oor 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 re nancing 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 pro les and the ability to make larger down payments.
Key Features
• Minimum Credit Score: 620; higher scores (740+) may qualify for better rates.
• Down Payment: As low as 3% for rst-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-quali ed borrowers.
• PMI can be removed once su cient equity is built.
• Greater exibility 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 nancial situation and homeownership goals. FHA loans o er accessibility for those with lower credit scores and limited savings, while Conventional loans provide bene ts for those with stronger nancial pro les. 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
• State and Local Veteran Homebuyer Programs
• VAREP Services Include
• Housing Grants for Disabled Veterans
• Employer-Sponsored Housing Bene ts
• Summary
Finding Support & Financial Assistance
Choosing the right mortgage is a pivotal step in the homebuying journey. While VA loans o er signi cant bene ts for military families, understanding alternative options like FHA and Conventional loans is essential, especially when VA eligibility is not applicable or when speci c nancial situations arise. Below is an in-depth look at these loan types, their requirements, pros and cons, and how they compare.
Down Payment and Closing Cost Assistance Programs
While VA loans do not require a down payment, buyers may still face signi cant closing costs. Many local, state, and nonpro t organizations o er grants or low-interest loans to cover:
Closing costs
• Escrow and prepaid items
• Energy-e ciency improvements
• Homebuyer education classes
Examples of Assistance Programs
• State Housing Finance Agencies (HFAs) often provide military-speci c bene ts.
• 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.
State and Local Veteran Homebuyer Programs
Choosing the right mortgage is a pivotal step in the homebuying journey. While VA loans o er signi cant bene ts for military families, understanding alternative options like FHA and Conventional loans is essential, especially when VA eligibility is not applicable or when speci c nancial situations arise. Below is an in-depth look at these loan types, their requirements, pros and cons, and how they compare.
These may include
• Property tax exemptions or credits
• Reduced mortgage rates
• State-funded down payment grants
• Assistance for disabled veterans and rst responders
Examples
• 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 Affairs 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 offers no-cost, mission-driven support designed specifically for the military and veteran community.
VAREP Services Include
• Credit & Budget Counseling – HUD-certi ed, 1-on-1 sessions to build nancial 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 nances
• 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 modi cations 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.
Employer-Sponsored Housing Benefits
Some employers—especially federal agencies, defense contractors, and public safety departments—o er housing bene ts 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 offered. If you're a transitioning servicemember, explore Skill Bridge and TAP program partners that include housing support.
Summary
You don’t have to be nancially 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
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 con icts 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
• Pre-Approved: Start with a VA-Experienced Lender
• Choose the Right Real Estate Agent
• Search for the Right Home
• Make an O er and Negotiate Terms
• Schedule a Home Inspection
• Complete the VA Appraisal
• Clear Underwriting and Close the Deal
• Understand Your Closing Costs and Fees
• Summary
The Homebuying Process
Embarking on the journey to homeownership can seem daunting, especially for rst-time military or veteran buyers. However, by breaking down the process into manageable steps, you can navigate each phase with con dence. 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 quali ed buyer.
• Issue Identification: Uncovers potential credit or nancial issues early in the process.
Pre-Approval Requirements:
• Recent pay stubs or Leave & Earnings Statement (LES)
• Bank statements
• Credit report (soft or hard inquiry)
• Certi cate 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 signi cantly 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 exibility.
• LendingTree
Note: Create a checklist distinguishing between "must-haves" and "nice-to-haves" to stay focused during your search.
Make an Offer and Negotiate Terms
Once you nd a suitable home, your agent will assist in crafting a competitive o er.
Key Components
• Proposed purchase price.
• Contingencies, such as inspection, nancing, 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 nancing.
• 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.
Clear Underwriting and Close the Deal
After your loan clears underwriting, you'll receive a Closing Disclosure outlining nal 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 offset these expenses.
Summary
Navigating the homebuying process requires preparation, trusted guidance, and the right resources. Leveraging your VA loan bene ts 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?
• Who Quali es?
• To be eligible for MVP program bene ts, you must:
• Real Rewards Disclosure
• The MVP Di erence
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 certi ed 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:
• Register at www.mvphhn.org
• 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
Real Rewards Disclosure
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.
The MVP Difference
• The only nonpro t HUD-approved Veteran Service Organization focused on homeownership
• MVP Ambassadors are vetted, trained, and certi ed
• 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 nd your way home.
SECTION 13 LIFE AFTER CLOSING
OWNERSHIP, PROTECTION, AND PLANNING
• Life After Closing — Ownership, Protection, and Planning
• Setting Up and Settling In
• Home Maintenance and Emergency Planning
• Emergency Preparedness
• Getting Involved in Your Community
• Navigating Financial Hardship
• Re nancing Options
• Options for Veterans
• VA Loan Assumption
• PCS Planning
• Summary
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 nancial and personal responsibilities. For military families, this also includes planning for deployments, PCS orders, and leveraging VA-speci c bene ts. 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.
• Register your home with local services: police, re, community alerts, and emergency responders.
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 ushing, 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 reproof safe.
• Prepare an emergency kit with food, water, rst-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 con dential 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 Re nance with no appraisal or income check.
• VA Cash-Out Re nance: Turn equity into cash for repairs or debt payo .
• Conventional Re nance: 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 quali ed 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
• 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.
Summary
Homeownership is a long-term journey—not just a one-time transaction. With proper planning, trusted support, and smart decision-making, you can build nancial stability and protect your investment. Whether you're planning for PCS orders, considering re nancing, 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
Appendix 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 nal 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 nancial 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 satis ed.
• Loan-to-Value Ratio (LTV): A nancial term used by lenders to express the ratio of a loan to the value of an asset purchased.
• 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 speci ed 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 quali es 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 nancial 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 nal inspection of a property by the buyer before closing.
APPENDIX B
Initial Steps After Receiving Orders
Review o cial orders for reporting date, entitlements, and dependent status
Schedule a transportation brie ng 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 certi cates
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
Financial Preparation
Review your PCS entitlements: DLA, TLE, TLA, per diem
Create a move-speci c 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 “ rst-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 nal walkthrough to avoid leaving items behind Con rm travel plans ( ights, 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
Review and update your deployment budget (include hazard pay, FSA, etc.)
Set up or con rm automatic bill payments and allotments
Establish or replenish an emergency fund (3–6 months minimum)
Notify your nancial 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 nancial management
SCRA Preparation
Request interest rate reductions on qualifying debts
Delay civil obligations if necessary (e.g., lease terminations, legal matters)
Notify creditors and lenders with deployment orders
Legal & Documentation
Update or create your Will, Living Will, and Power(s) of Attorney (general and speci c)
Update bene ciary designations on life insurance and retirement accounts
Ensure a current Family Care Plan is led (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 re ll 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 uids, 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, rst aid, etc.)
Personal & Professional Affairs
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
Suspend or forward mail using USPS hold/forwarding services
Write down any personal goals or deployment projects
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
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 brie ngs and required trainings
Con rm 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
Do I have enough savings for upfront costs?
Can I afford ongoing monthly costs?
Have
Housing Type & Location
Have I evaluated on-base housing availability?
Do I want to live off-base or in the community?
Am I relocating OCONUS or temporarily?
Time & Stability
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
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?
Legal & Regulatory Issues
Have I reviewed the lease for restrictions and penalties?
Do I understand HOA rules or zoning if buying?
Equity & Investment Potential
Do I want to build equity in a property?
Do I want to benefit from rising home values?
Do I want fixed monthly payments?
Do I want access to housing tax deductions (e.g., mortgage interest)?
If renting out a home later, am I prepared to manage rental income taxes?
Decision Tip
• Renting may be better if you need exibility, plan to move soon, or aren’t nancially ready to commit.
• Buying may be better if you plan to stay 5+ years, and want to build long-term wealth.
APPENDIX E HOMEBUYER
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 Readiness
Pre-Approval Secured from VA-Experienced Lender
• Con rms loan eligibility, amount, and strengthens o er.
Certificate of Eligibility (COE) Obtained (VA Buyers Only)
• Veri es entitlement to use VA loan bene t.
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 bene t.
Education & Planning
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
Confirm VA Loan Eligibility
• Request your Certi cate 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 exible
• Dispute inaccuracies and reduce outstanding debt
• Use military-speci c tools (e.g., CFPB's servicemember resources)
Document Income and Assets
• Pay stubs (30 days)
• Tax returns (2 years; or pro t/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 bene t
• 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 nance 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 speci c comments or considerations.
Home Features
Notes Category
Single-level layout
Open oor plan
Number of Bedrooms (specify)
Number of Bathrooms (specify)
Home o ce space
Energy-e cient appliances
Central heating & cooling
Fireplace
Hardwood ooring
Updated kitchen
Walk-in closets
Garage (specify size)
Basement or attic
Laundry room
Smart home technology
Solar panels
Fenced yard
Garden or outdoor space
Swimming pool
Home security system
Need Want
Location & Community
Need Want Notes Category
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
Within budget
Eligible for VA loan
Low property taxes
Homeowners association (HOA) fees
Potential for property value appreciation
Minimal renovation needs
Energy-e cient features
Insurance costs
Personal & Family Needs
Need Want
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
Potential for home expansion
Resale value
Rental income potential
Zoning regulations
Environmental risks ( ood zones, etc.)
Fenced yard, nearby parks
Ramps, wide doorways
Multi-generational living
Family and friends
For families with young children
Clubs, organizations
Community support
Neighborhood Safety & Security
Safety Consideration
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/ re station
Low tra c speeds/ safety signage
Environmental risk zone ( ood/ re/hazard)
Good visibility from surrounding homes
Need Want Notes
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 bene t or other programs you qualify for
Attend a homebuyer education session (recommended)
Get Pre-Approved
Choose a VA-experienced lender (or another quali ed lender)
Apply for mortgage pre-approval and receive a pre-approval letter
Obtain your Certi cate 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 Offer
Review the market with your agent to make a competitive o er
Submit your o er with contingencies (inspection, nancing, 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 ndings
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 nal loan estimate and compare closing disclosures
Schedule your closing date
Closing & Move-In
Conduct a nal 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 ( ashlight, batteries, re extinguisher)
Review and Adjust Insurance
Review your homeowner’s insurance policy annually
Add coverage if needed ( ood, earthquake, umbrella, etc.)
Update your Servicemembers’ Group Life Insurance (SGLI) and bene ciary 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 ling
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 bene ts
Know your options if nancial hardship arises
(loan modi cation, VA assistance, HUD counseling)
APPENDIX J TRANSITIONING
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 bene t 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 bene ts, 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 bene ts, retirement
Legal & Administrative
Update legal documents: wills, power of attorney, bene ciary designations
Change address with USPS, banks, insurers, VA, DFAS, and TRICARE
Know your rights under SCRA, including:
▪ Lease termination exibility
▪ Reduced interest rates
▪ Protection from eviction or foreclosure
Health Care Transition
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 nal checkups and re ll prescriptions before separation
Mental Health & Wellness
Connect with Vet Centers for free, con dential 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 nal 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
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
TransUnion
• Phone: 1-800-916-8800
• All Inquiries:
• P.O. Box 2000, Chester, PA 19016-2000
• Website: www.transunion.com/customer-support/contact-us-consumers
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