If you and your partner both bring in a steady paycheck, whether you’re both wearing a military uniform or working full-time jobs, you’re already in a strong position when it comes to buying a home. But the truth is, just having two incomes doesn’t automatically mean you’re getting the most out of your buying power.
Here’s how to make those dual incomes really work for you:
1. Combine Incomes Strategically to Maximize VA Loan Approval
When lenders assess what you can afford, they’ll look at your combined debt-to-income (DTI) ratio. If one of you has more stable or higher income, you might qualify for better loan terms. Use this to your advantage when shopping for a mortgage option. Make sure you compare VA loans, conventional loans, and other programs based on your unique income blend.
Pro Tip: VA loans often allow a higher DTI ratio than conventional loans, which can be especially helpful for dual military families.
2. Use Dual VA Loan Entitlements to Increase Buying Power
For dual military couples, you may both be eligible for VA loan entitlements. That opens up strategic options, including:
- Co-borrowing with split entitlement to buy a more expensive home with $0 down
- Preserving one partner’s VA entitlement for a future home or investment property
- Using one entitlement while the other rents out a previous VA-financed home
Understanding how to structure your VA loan entitlement usage can increase flexibility now and in the future.
3. Budget Based on One Income, Buy Based on Two
Set your budget as if you’re living on one income, or one Basic Allowance for Housing (BAH). This gives you breathing room for any deployment-related income gaps, unexpected PCS orders, or job changes. Then use your combined incomes to qualify for a higher VA loan amount or better home options. Financial stability and more flexibility, yes please.
4. Pay Off Debt Together, Fast
Two incomes = faster debt payoff. Focus on knocking out high-interest debt together, such as credit cards, personal loans, or auto payments before house hunting. Be strategic about this and talk to a VA loan expert about which debts have the most potential to improve your DTI and lead to a better interest rate.
Pro Tip: Avoid paying off debt right before applying for a mortgage. Drastic changes in your credit profile can sometimes cause temporary dips in your credit score.
5. Buy with PCS Moves in Mind: Long-Term VA Loan Strategy
Think beyond your current duty station. If you’re likely to PCS in a few years, consider properties in strong rental markets near major bases. Dual incomes can support holding the property as a rental while purchasing your next home with VA benefits.
Pro Tip: Not all VA lenders are experienced in helping military families plan for future rentals or multiple VA loans. Choose a lender who understands your lifestyle.
Dual Income, a Powerful Advantage for Military Couples
At the end of the day, having two incomes is a powerful advantage, if you know how to use it. Be strategic, do your homework, and make decisions that support your lifestyle now and your financial future later.
Whether you’re building roots or building equity, you’ve got options and we have the tools to help make it happen. Give our VA loan experts a call!
