Buying a home while serving in the military or transitioning to civilian life can be both exciting and overwhelming. Between PCS orders, VA Home Loan requirements, and fluctuating interest rates, servicemembers may have specific concerns. 

Here, we’ll cover eight of the most common questions military homebuyers are asking our Military Mortgage Advisors (MMAs) — and the answers that can help them make wallet-smart decisions. 

Remember, if you have questions at any point during the homebuying process, contact your Mortgage Advisor, a licensed mortgage loan originator. We’ll also offer you a free “second opinion” on competitive mortgage offers.

Q: Should I buy a home while I'm still active duty?

A: Whether or not you should buy your home depends on your long-term goals and the duration you expect to stay in the area. If you’ve received PCS orders and know you'll be stationed somewhere for at least 3-5 years, buying a home there may be a solid investment — especially if the area has stable or growing home values. However, if your assignment is short-term or uncertain, renting may be the safer option.

Another key factor is whether you're comfortable becoming a landlord at a later date. Many military buyers rent out their homes when they move, but that comes with responsibilities (and occasional headaches). If you're not ready for that, you might want to hold off.

Related: It's PCS Time — Should We Live on Base? Rent? Or Buy?

Q: How does a VA Home Loan actually work, and what are the benefits?

A: A VA Home Loan is a mortgage backed by the U.S. Department of Veterans Affairs (VA), designed specifically for active-duty servicemembers, Veterans, and some military spouses. The major benefits include:

• No down payment required (in most cases)
• No private mortgage insurance (PMI)
• Competitive interest rates
• Flexible credit guidelines (although your lender may have specific requirements, called overlays)
• Limited closing costs

To be eligible, you typically need to have served 90 consecutive days during wartime, 181 days during peacetime, or six years in the National Guard or Reserves. You can use your VA Home Loan benefit more than once, and even on more than one home (with some limitations).

Related: How the VA’s Home Loan Entitlement Works

Q: Is now a good time to buy, considering current interest rates?

A: Interest rates have fluctuated in recent years, but VA Home Loans often come with lower rates than conventional loans. While it’s true that rates are higher now than during the pandemic, they’re still historically moderate. If you find the right home and can afford the monthly payment, now can still be a great time to buy — especially because rents are also rising in many areas.

Plus, VA Home Loans don’t penalize you for refinancing later. If rates drop, you can use a VA IRRRL (Interest Rate Reduction Refinance Loan) to lower your rate with minimal hassle.

Q. Can I buy a home in a different state while I’m still stationed elsewhere?

A: Yes! Many military families buy homes in the location of their next PCS, even before they arrive. Remote buying is increasingly common and easier than ever thanks to virtual tours, digital signatures, and remote closings.

However, you'll need a trusted real estate agent who understands military moves. Make sure they’re experienced with VA Home Loans as well as the local market, and can advocate for your needs from afar.

Related: Tips for Buying a Home “Sight Unseen”

Q. What if I have to move again in a couple of years? Will I lose money?

A: Your home’s value depends on several factors: Your home's value depends on several factors such as: homes sold in your market, interest rates, economic trends in your market area, and any home improvements you made to the home..

If you’re only in the home for a short time and the market drops, you could lose money by selling. But if you rent out the home for a few years, you could cover the mortgage and may even earn a profit. Many military homeowners use this strategy to build long-term wealth.

Before buying, work with a real estate agent or your Military Mortgage Advisor, a licensed mortgage loan originator,  to run the numbers. This will help you understand your break-even point and consider whether you want to sell the home or rent it out for a period of time.

Q. Can I use a VA Home Loan to buy a fixer-upper or a multi-family home?

A:  Yes, you can use your VA Home Loan for certain unique purchases, with some limitations:

• Fixer-uppers: VA Home Loans require the home to meet certain habitability standards, so a “fixer upper” must still be move-in ready. You can’t use a VA Home Loan for major renovations upfront, but you can refinance into a renovation loan later if needed.
• Multi-family homes: You can use a VA Home Loan to buy a property with up to four units, as long as you live in one of them. This can be a smart move for military buyers interested in house hacking or building rental income while serving.

Related: VA Home Loans Don’t Require a Home Inspection, But Getting One Is a VERY Good Idea

Q: What should I look for in a military-friendly real estate agent or lender?

A: Military moves are unique, so it’s critical to work with professionals who understand the process. Look for agents and lenders who have experience with VA Home Loans and military relocations; are accredited (e.g., Military Relocation Professional certification); offer flexible hours and are responsive (time zones and deployment can make scheduling tricky); and can help with remote showings, video tours, and e-Signing.

Ask if they’ve worked with other military families and what challenges they’ve helped solve. A military-friendly team will anticipate issues before they arise and make your homebuying process smoother.

Q. What are the hidden costs of buying a home I should be prepared for?

A: Even with a $0 down VA Home Loan, you’ll still face some out-of-pocket costs, including:

• VA funding fee (rolled into the loan, unless you're exempt)
• Closing costs (1–5% of the loan amount, though sellers can cover some)
• Home inspection and appraisal
• Moving expenses
• Maintenance and utilities (budget 1% of the home’s value annually for repairs)
• Property taxes and homeowners insurance

Some military families are caught off guard by these expenses. A good lender will walk you through them early, and you can often negotiate with the seller to cover part of the costs.

We’re Here to Help

Whether you’re thinking about buying, ready to start shopping for a home in earnest, or considering a refinance, contact an AAFMAA Mortgage Services LLC (AMS) Military Mortgage Advisor (MMA). As a licensed mortgage loan originator, your MMA will be happy to provide you with an honest and fair comparison of your mortgage options, including a wide range of affordable mortgages designed to meet your needs.

Ensuring Armed Forces Mutual Members obtain the best mortgage possible is our mission. Get your free mortgage assessment today or give us a call at 844-422-3622!