Young Couple Just Out of The Military

[Dylan Tettemer]

Hello everyone! I will be getting out of the military in a couple of years so me and my wife will be moving to the Charleston area when the time comes and I will become a contractor. I am stationed overseas in Japan right now but we are trying to find ways to be able to get our hands on a house while we are here. I have never purchased a home before and I am still very young (21 years old) so I am not sure how it will go even with the VA loan. I would love to hear about the area and how the market is doing so I can make a smart decision, thanks for any help!

[Kerry Baird]

Good plans that you've set.  We spent 16 years overseas over a 24 year career.  I suggest you use the extra income from any deployments, tax free, COLA and start saving up for house down payments.  If you get a bonus, set it aside.  

Next, you must intend to occupy a house for at least a year in order to be approved for a VA mortgage. But that doesn't mean that you can't buy a house. You would just use another mortgage source and press on. We bought 30 odd houses before we used one of our VA opportunities. As military to military, we have two that we can use, one at a time. Additionally, we can go up to 4 units on one VA (or conventional) loans, so if you are prepared to buy a fourplex, occupy it for a year, and then move on, you will be set up for a few more doors, and some income.

Your future situation is made all the easier because you plan on having an income.  Folks who get out and go straight into college with the GI Bill find that they can't immediately use the housing allowance from the GI Bill to fund a mortgage.  However, having a job similar to the job you are leaving will add longevity to your income and make it easier to qualify.  

In our story, we were stationed at Mildenhall and had already purchased a number of houses.  We found someone here at BP who offered turn-key properties, and we bought two of them in Texas.  We bought those in 2012 and still haven't set foot in them.  When we purchased them, they already had tenants in place and an awesome property manager.  

Great job setting down some goals.  Reality has a way of rearing its head, and all the better when we are prepared to meet it head on.  All the best~