Why some veterans are buying homes at every duty station (and building wealth)
When you enlist as an active duty member of the U.S.military, you should expect to move every two to four years while on active duty.Knowing that you will move frequently might make you hesitant to make use of the greatest engine of wealth creation in America — owning your own home.
Especially if you plan to make a lifetime career out of military service, the thought of buying a new house more often than civilians buy a new car might convince you to be a terminal renter.But buying an affordable home is one of the great perks of serving in the U.S.armed forces.
With a VA zero-down-payment loan, you can both buy a house for you and your family, and you can start building generational wealth while serving your country.VA loans have helped many service members buy their first homes.According to a recent survey from Veterans United, 96% of Active Duty members used the VA home loan for their first home purchase, and 91% of Active Duty homeowners agreed that using the VA home loan made their first home purchase possible.But an even more interesting finding of the survey is that 54% of Active Duty members own residential property in addition to their primary residence, 23% have a secondary/vacation home and 37% have investment property. It’s as self-explanatory as it reads, but here are the details about how it works. A service member purchases a primary residence at their current duty station and lives in it for the duration of their tour, or generally at least 12 months.
When they are relocated, they can convert it into a rental property after they use another VA loan to buy a new primary residence at their new post (though service members will almost always need to make a down payment on that next VA home purchase).The key to this wealth-building strategy is the unique benefits of a VA mortgage.With its $0 down payment requirement and lack of private mortgage insurance (PMI), veterans can acquire high-value assets with minimal upfront capital. By leveraging th...