Buying – WeVett https://wevett.com Secure Your Next Home with a Military-Focused Lender Fri, 17 Apr 2026 17:03:50 +0000 en-US hourly 1 https://wordpress.org/?v=6.9 https://wevett.com/wp-content/uploads/2023/12/cropped-doublechecks_Square_Blue-1-32x32.png Buying – WeVett https://wevett.com 32 32 Buying in High-Cost Areas: Your PCS Homeownership Guide https://wevett.com/2026/blog/buying-in-high-cost-areas-your-pcs-homeownership-guide/ Fri, 17 Apr 2026 16:59:37 +0000 https://wevett.com/?p=21769

At each PCS, many active-duty military families face a unique challenge: navigating the homebuying landscape in a high-cost-of-living (HCOL) area. At WeVett, approximately 70% of our clients are active duty, and we frequently guide them through purchasing in places like DC, Los Angeles, San Diego, and Hawaii.

After addressing the buy vs. rent decision, the question then becomes, “How do I navigate buying a home in an expensive market and what factors are most critical?” This guide breaks down the essential considerations to help you make an educated, confident decision.

1. Understanding High-Cost Markets

A high-cost market is characterized by elevated home prices relative to national averages. For military families, this often means areas where the average home price might be $500,000 to $800,000 or more, compared to the national average of around $400,000.

Key Features of a High-Cost Market:

  • Elevated Prices: Significantly higher purchase prices than the national norm.
    Population and Income
  • Growth: These areas typically experience high rates of population growth, income growth, or both, driving up demand.
  • BAH Disparity: Basic Allowance for Housing (BAH) may not fully cover market rents or potential mortgage payments, which can make purchasing feel intimidating.
  • Greater Competition & Tight Inventory: High demand means homes sell quickly, leading to greater competition among buyers.

General Market Considerations for Buying

When considering a purchase, especially in an high-cost area, confirm that the market fundamentals are strong:

  • Growth: Ensure the community’s population or income is stable or growing. Shrinking communities can make selling difficult later.
  • School Districts: Strong school districts often correlate with higher and more stable property values.
  • Job Diversification: Look for a robust, diversified employment base, rather than reliance on a single major employer, which generally stabilizes the housing market.

 

Most major HCOL areas typically meet these metrics, generally making them favorable for buying if the price point works for you.

2. Personal Buying Considerations

Sometimes, personal needs dictate the decision to buy, overriding pure financial comparisons.

Factors That Might Force a Purchase

  • Large Families: Rentals with four, five, or more bedrooms are rare in many markets, making a purchase necessary for space.
  • Pets: Specific breeds or multiple pets can make securing a rental extremely difficult or cost-prohibitive due to deposits and fees.
  • Specific Needs: Requirements like ADA modifications or specific yard/property preferences are often easier to accommodate through ownership than through renting.

 

If personal considerations push you toward buying, you then need to ensure the financial decision is optimized.

Long-Term Mindset:

Buying in a high-cost area often requires a longer-term perspective:

  • Willingness to Rent Out: Do you plan to sell or rent? If you are willing to keep the home as a rental property after your PCS, it increases your flexibility. Short-term orders become less stressful if you know you can transition the property to a long-term rental, allowing you to build equity over time.
  • Future Return: Are you likely to return to this area for a future assignment or retirement? If so, owning now and renting in the interim can be a powerful long-term financial strategy.

3. The Timing Recommendation

For a general, non-math-intensive guide on buying, we recommend considering your ownership horizon.

Basic Timing Recommendation: Will you own the home for at least three years?

  • Why Three Years? In most markets, owning a home for a minimum of three years allows you time to pay down enough of the principal and ideally capture enough market appreciation to at least break even, even after factoring in the costs of selling (real estate commissions, closing costs, etc.).
  • Own vs. Live In: “Own” means the property is in your name, whether you live in it or rent it out. Longer ownership periods (four, five, six years, or more) are always better, as they further mitigate market fluctuations.

 

In high-cost areas, this three-year break-even point is often slightly higher, sometimes four or even five years, due to the larger volume of money involved in selling costs (e.g., 6% of a $700k home is higher than 6% of a $400k home). This is why a detailed financial comparison is especially critical in high-cost markets.

4. The Buy vs. Rent Decision

When you’re heading into a high-cost area, making the decision to buy or rent is all about the data. That’s why we built a Military Buy vs. Rent Calculator designed to factor in BAH, VA loan details, opportunity cost, and more. This powerful tool helps you evaluate your actual scenario with real inputs tied to your orders.

The key is comparing apples to apples. You’ll want to evaluate similar home types, square footage, and bedroom counts so the numbers reflect the lifestyle you’re actually looking for. From there, the calculator shows your projected break-even timeline by generating how long you will need to own the home before buying makes financial sense.

Run your numbers here.

5. VA Loan Limits in High-Cost Areas

If you decide to buy, utilizing your VA loan benefits requires understanding how high-cost areas impact your eligibility.

County Loan Limits:

  • Standard vs. HCOL Limits: If you have no outstanding VA loans, you can generally get a 0% down VA loan for any amount (with lender approval). However, if you are retaining an existing VA loan, your remaining eligibility is subject to county loan limits.
  • Higher Limits for HCOL: Many standard counties have a typical VA loan limit (e.g., $832,000 in 2026). High-cost areas, however, often have higher loan limits, sometimes exceeding $1.2 million.

Calculating Remaining Eligibility (Keeping an Existing VA Loan):

To determine your 0% down eligibility when keeping an existing VA loan:

ScenarioCalculationExample (HCOL)
HCOL County Loan LimitMaximum limit for the new county$1,280,000
Original Loan Balance (Loan Kept)The original loan amount of the VA loan you are keeping$300,000
Remaining EligibilityLimit minus Original Loan Balance$980,000 (0% down eligibility)

Note: If you used a standard loan limit in your calculation, you might mistakenly think you have less eligibility, forcing you to bring a down payment unnecessarily. Always confirm the county loan limit at your new duty station.

The Double-Edged Sword:

While high-cost areas expand your 0% down buying power now, using a large portion of your VA eligibility to buy a $1.2 million home may significantly reduce your remaining eligibility for a future purchase in a lower-cost area. It is vital to understand this impact on your long-term VA loan strategy.

Your Next Move Starts With a Plan

Buying in a high-cost area on military orders isn’t about chasing the market or fearing it. It’s about understanding your timeline, your family’s needs, and how this purchase fits into your long-term financial strategy. When you approach the decision with clear data around ownership length, market fundamentals, and VA eligibility, the price tags become less daunting.

High-cost assignments can absolutely work in your favor, but only if the move supports your broader goals. If you’re weighing whether to buy or rent, unsure how this impacts your next steps, or want a second set of eyes on your homeownership strategy, we’d love to connect.

Check out more resources here, and contact our team to build a personalized game plan.

]]> Buy vs. Rent: a Data-Driven Guide for PCS Moves https://wevett.com/2026/blog/buy-vs-rent-a-data-driven-guide-for-pcs-moves/ Fri, 20 Feb 2026 16:42:08 +0000 https://wevett.com/?p=21338

Military families know the drill. PCS orders drop, and there’s about 90 seconds to let it sink in before muscle memory takes over. You reach for your phone.

First search: BAH rates at [new duty station]
Second search: Zillow
Third search: Costco near [new duty station]

This is the proper PCS order of operations. We don’t make the rules.

Within hours, what started off as curiosity has spiraled into a high-school math flashback scene. If BAH is this, and homes are going for that… maybe renting makes sense. But, we really want to invest in our future, so this would be a great duty station where we finally make the leap.

Subtract the nine, carry the one, and just like that, you’re there again—the PCS math trap.

For military families, almost every piece of the homebuying process is touched by their lifestyle. Tight timelines, fluctuating BAH, and location uncertainty mean that what may be a steady investment for most carries far more nuance for active-duty buyers. Buying a home isn’t a feelings-based decision, but compiling the facts requires time, energy, and clarity; all of which are in short supply during the transition from one duty station to the next.

The Buy vs. Rent Calculator Made for Military Families

As a company built by and for the military community, WeVett knows the weight of the buy vs. rent decision during a military move. And even though helping you find and finance a home is our thing, we know that buying isn’t the default decision for everyone at every PCS. That’s why we built the Military Buy vs. Rent Calculator.

This isn’t a generic online widget built for the general population, it’s a tool specifically designed for active-duty service members navigating BAH, the VA loan, realistic ownership windows, and the very real possibility of having to pick up and go after only a few years.

At its core, the calculator stands to answer one crucial question: Over the time I expect to be at this duty station, which option leaves me and my family in a stronger financial position?

It doesn’t just compare monthly payments, it evaluates the total cost of ownership versus the total cost of renting while factoring in the VA funding fee, estimated appreciation, property taxes, insurance, maintenance, selling costs, and even the opportunity cost of tying up capital in a home versus investing it in other ways.

The Military Buy vs. Rent Calculator doesn’t push you toward buying or default to renting, it empowers buyers by revealing the realistic tradeoffs. Sometimes, ownership is the clear winner. Other times, especially for short timelines in high-cost areas, renting is the best option. But at the end of the day, clarity is what matters most; especially when orders can change faster than the market.

How to Use the Buy vs. Rent Calculator

First, let’s get this out of the way. The Military Buy vs. Rent Calculator is fun. We don’t judge you one bit for running the numbers on a $2.3 million dollar house in San Diego (for data purposes, of course). With that said however, this tool provides the best information when your inputs are as accurate as possible.

Here’s how to harness its power.

Start with your real pay grade, dependency status, and duty station.

Then, enter rental numbers that are comparable to the type of property you would realistically choose to buy. This is VERY important. For example, if you’re looking to buy a 3-bedroom 2.5-bath new build, don’t enter rental numbers for a studio apartment.

Scroll to the “Buy (VA Loan)” section, and complete the fields. Use current VA loan rates and keep in mind, the VA funding fee can be waived in certain circumstances. Your Certificate of Eligibility (COE) will indicate your exempt status. But, the most important variable here is your ownership timeline. Run the scenario based on your expected PCS window. If you plan to rent your property out after you buy, adjust the timeline accordingly.

The optional Advanced Options section allows you to really get into the nitty gritty. Here, you can enter loan term, other closing costs, property tax, appreciation, selling costs, insurance, maintenance, HOA, and utilities. Again, we encourage accuracy here, but realize none of us can see into the future. Do your best!

Next, select your tax information. If you enable the Opportunity Cost section, you’ll be able to see what would happen if you invest your down payment and any additional monthly savings.

Hit “Calculate” et voila, your Summary and Detailed Results are both available for the taking.

What to Watch Out For

One of the most common distortions in the buy vs. rent conversation happens when the properties being compared aren’t truly comparable. As mentioned earlier, if you’re running the numbers for a 3-bedroom 2.5-bath new build against a studio apartment, you’re comparing apples to oranges.

However, if you’re actively looking for similar properties to rent and finding that there are none, that could be a solid indicator that buying wins out in this scenario.

Another potential snare in running the numbers is leaning too heavily on optimistic appreciation assumptions. If buying only makes sense when appreciation runs hot, you’re placing bets on market performance which could spell trouble in the future.

Finally, resist the temptation to set rent increases to zero or populate maintenance costs with unrealistically low numbers. Both ownership and renting can experience inflation over time. So, best to keep a level head and err on the side of caution.

Remember, the Military Buy vs. Rent Calculator isn’t about building blue sky scenarios, it’s about setting military families up for long-term success.

The Move Before the Move

Home wasn’t built in a day (that’s how the saying goes, right?). Likewise, no PCS happens in one glorious fell swoop. It’s all about balancing short-term decisions for long-term gains, and finding a way to honor both. At the end of the day, what matters more than the best kitchen or shortest commute is whether your housing choice strengthens and supports your financial goals or actively works against them.

Buying with the VA loan is still one of the most powerful wealth-building tools available to active-duty service members and Veterans—especially when timeline and markets align. But renting can also be the strategic choice when flexibility takes center stage. The difference isn’t opinion, it’s math.

WeVett’s Military Buy vs. Rent Calculator serves to stand in that decision gap, revealing the full picture. The result? Transparency, confidence, and valuable time back. In a military career where so much is decided for you, this is one of the few choices where you can have control.

So, run the numbers. Stress-test the timeline. Then, if you want a second set of eyes on what you’re seeing, always feel free to reach out. We’re here to help you build, so the moves you make today support the life you’re building long after your last duty station.

Start your military homebuying journey today!

]]> VA Loan Homebuyer Checklist https://wevett.com/2025/blog/loans/va/va-loan-homebuyer-checklist-2025-guide/ Wed, 13 Aug 2025 18:21:35 +0000 https://wevett.com/?p=19652

Buying your first home with a VA loan can feel overwhelming, but with the right plan, it’s a smooth and rewarding process. This checklist will walk you through every step of the VA home loan process – from confirming eligibility to settling into your new home.

Before You Start the Home Search

 ☐ Confirm VA loan eligibility

Most active duty, reserve, guard, and veterans qualify:

  • Active Duty: 90 consecutive days of service
  • Reserve/Guard: 6 years of service
  • Surviving spouses may also be eligible under certain conditions

Read more about va eligibility specifics.

 

 ☐ Request your Certificate of Eligibility (COE)

  • Your lender can request this online in minutes (if they don’t know how to do this, you’re working with the wrong lender)
  • Proves your VA loan entitlement to lenders

 

 ☐ Check your credit score

  • Aim for 620+ for most lenders – and remember, the VA doesn’t set the standard, it is lender specific
  • You can pull your score annually for free from each of the three credit bureaus at AnnualCreditReport.com 

 

☐ Calculate your housing budget

Find a VA Loan Lender

 ☐ Schedule a consultation call

  • Called the Pre-Check Call, we’ll walk through your eligibility, loan options, and outline the full process

 

☐ Get pre-qualified or pre-approved

  • Pre-qualification: Quick estimate based on the basic information you tell us on the phone
  • Pre-approval: Underwriter reviews your finances in depth; a pre-approval is considered much stronger when making offers

 

☐ Discuss zero-down and VA funding fee exemption

  • Most VA buyers qualify for 0% down with no Private Mortgage Insurance (PMI)
  • Veterans with a disability rating of 10% or greater may be exempt from the VA funding fee

 

☐ Explore dual entitlement if you’re a dual-military couple

 

☐ Gather required documents

  • LES or most recent pay stubs (for you and your partner)
  • Government-issued photo ID
  • Last two months of bank statements
  • Statement of Service (Active Duty) or DD-214 (separated)
  • W-2s or tax returns from the last 2 years (if applicable)
 
 

Start Your Home Search

 ☐ Partner with a military-friendly real estate agent

  • Ask WeVett Realty to connect you with a military PCS expert
  • Make sure you choose someone who understands PCS timelines and military needs

 

 ☐ Stick to your pre-approved price range

  • Avoid surprises or delays during underwriting
  • Remember to factor in closing costs

 

 ☐ Consider long-term lifestyle factors

 

☐ Budget for ongoing expenses

  • Include property taxes, HOA dues, utilities, home maintenance, etc. 
  • Escrow accounts can help spread out these costs

Make an Offer & Close on Your Home

 ☐ Submit an offer through your agent

  • Include your VA loan pre-approval to strengthen your offer
  • Don’t be afraid to negotiate seller concessions or closing costs (your real estate agent is your go-to resource for this!)

 

☐ Schedule a VA appraisal

 

☐ Order a full home inspection

  • Strongly recommended!
  • Helps you spot any major issues with the home before finalizing the deal

 

☐ Lock in your interest rate

  • Rates can fluctuate daily, locking a rate in secures your monthly payment

 

☐ Review loan disclosures and closing details

  • Compare Loan Estimate and Closing Disclosure for accuracy
  • Double-check interest rate, fees, and total costs

 

☐ Sign and close!

  • Bring your ID, review documents, and receive your keys (unless you are closing virtually – your loan officer will explain your specific process if you are unable to close in person)
  • Congratulations, you’re now a homeowner!

After Closing

 ☐ Set up utilities and update your address

 

 ☐ Store all loan documents safely for future refinance opportunities

  • Keep digital and printed copies of the deed, mortgage, and VA paperwork
  • You may need them again for refinancing or future loans

Ask WeVett Home Loans to track your refinance opportunities using the Rate Radar!

 

☐ Know your loan servicer

  • They’ll handle your monthly payments and tax/insurance escrow

Note: Your loan originator is the lender or mortgage professional who helps you secure the VA loan. They guide you through the application, approval, and closing process. Once you close, your loan servicer takes over. The servicer is the company you send your monthly mortgage payments to, and they manage your escrow account for taxes and insurance. Sometimes the loan originator and servicer are the same company, but often your loan will be transferred to a separate servicing company after closing.

 ☐ Start building long-term equity

  • Consider how long you’ll stay and what comes next—live in, rent out, or sell
  • You can use your VA benefit again in the future!
  • Ask us about our 20-Year Client Vision of helping you have a paid for home by military retirement!

VA loans are one of the most powerful benefits you have with zero money down, no PMI, and flexible guidelines. Our mission is to make it easy, fast, and transparent for military families to own a home you love.

 

Questions about the process? Talk with one of our VA loan experts –> 316-669-5272

]]> How Fewer PCS Moves Could Impact Military Homebuyers (and Sellers) https://wevett.com/2025/blog/military/pcs/how-fewer-pcs-moves-could-impact-military-homebuyers-and-sellers/ Fri, 25 Jul 2025 22:06:12 +0000 https://wevett.com/?p=19316

Big changes are coming to how military families move – and that could reshape the way service members think about buying a home. In May 2025, the Department of Defense announced a major overhaul to Permanent Change of Station (PCS) policy. Beginning in 2026, the DoD plans to reduce discretionary PCS moves by 50% by 2030. While this shift could ease the disruption of frequent relocations, it also introduces new considerations for military homebuyers – especially those weighing whether to buy or rent during their next assignment.

DoD’s PCS Policy Changes: What’s Actually Changing?

A recent memo from the Under Secretary of Defense for Personnel and Readiness outlines a plan to cut discretionary PCS moves by 50% by fiscal year 2030, starting with a 10% reduction in 2027. This means reductions will begin October 2026.

Discretionary PCS moves, those not required for mission needs, include career development or education-related relocations. The goal is to prioritize geographic stability and allow service members to specialize in specific roles without frequent relocations.

This shift aims to address long-standing concerns about the impact of frequent moves on family life, spouse employment, and the overall wellness of a military family. A recent survey indicated that 32% of active-duty spouses favored leaving the military, mentioning challenges like finding employment and securing child care after a move.

Why the PCS Reforms Could Encourage Military Homeownership

For service members eyeing homeownership, these policy changes could be a double-edged sword, let’s look at how these changes might affect military homeownership long-term.

Increased Stability and Confidence in Buying

With fewer moves, families might feel more confident investing in property, knowing they’ll stay in one location longer. If families can imagine that home will be “home” long enough for them to unpack boxes, decorate, plant a garden, build a man-shed, etc., it’s more likely they will want to make that move into homeownership rather than renting for five years.

Financial Benefits of Longer Assignments

The ability for families to stay longer at one location offers two very positive financial options.

At WeVett, we strongly recommend the 3-year rule: if you don’t plan to live in or hold a home for at least three years, buying may not be the right call. Any less than that, families run the risk of having to sell at a loss because they haven’t accumulated enough equity in the home to offset the cost of purchasing (especially if they purchased using 0% down).

Second, longer tenancy also benefits spouses seeking gainful employment. It allows spouses to obtain employment for longer term positions, gain career enhancements and raises, and provides solid work history for future employment opportunities.

Stronger Community Roots for Military Families

Longer stays allow families to build deeper connections within their communities, which can vastly improve mental and emotional health for all members of the family. Children benefit from consistent schooling, long-term friendships, and the emotional security that comes with staying rooted.. Families will have the chance to connect not just with other military families, but also create relationships with people in the local community, such as neighbors, who can provide advice and assistance on different homeownership challenges or projects.

The Flip Side: New Risks for Military Sellers and Investors

Potential Trouble Selling in Military-Heavy Markets

In some duty stations, military homeowners may find it difficult to sell or rent out their home if service members are moving less frequently, especially if their home is in a predominantly a military-owned neighborhood. For areas that are crash-pad dense, investment owners might want to be cautious before investing too heavily in one location.

Risks from Market Volatility and Unplanned Moves

The real estate market’s volatility means that even with longer stays, buying a home carries financial risks, especially if unexpected relocations occur.

Smart Strategies for Homebuying Under the New PCS Rules

Thinking about buying a home under the new PCS rules? Here’s how to make a confident move:

Know Your Assignment Timeline (The 3-Year Rule)

Understand the expected length of your current assignment and any potential for extensions. Again referencing our 3-year rule, if your assignment is less than three years and you don’t intend to rent the property out when you leave, you might want to consider renting.

Get Matched With a Local Military-Experienced Agent

Seek guidance from a PCS real estate expert and research the housing market in your area to determine if buying is the right move for you. Local housing markets differ across the country, and what makes sense in one city, might be a recipe for disaster in another.

Build a Financial Exit Plan Just in Case

Think about the property’s resale potential or its viability as a rental if you need to move unexpectedly. Despite the potential for increased stability in move cycles, the military still has to remain operationally effective, and sometimes that means moving key people at unexpected moments. Have a game plan established for the unexpected: create a rental strategy and potential pro forma, take advantage of a VA streamlined refinance to reduce your mortgage payment, or complete minor upgrades on the home to boost resale value – that way one PCS move doesn’t sink your financial ship forever.

What These PCS Changes Mean for Your Future

The DoD’s PCS policy overhaul represents a significant shift in military life, aiming to balance operational readiness with family well-being. While the changes promise greater stability, they also require service members to navigate new challenges, especially concerning career progression and financial planning. We will begin to see those changes come into affect in 2026 – and from there, we hope to see the benefits outweighing the downsides for military families, especially when it comes to home ownership.

Need help deciding whether to buy or rent during your next move? We’ll connect you with a VA loan specialist and a military relocation expert – nationwide.

]]> Why Home Closings Get Delayed https://wevett.com/2024/blog/homebuying/why-home-closings-get-delayed/ Mon, 25 Nov 2024 20:16:30 +0000 https://wevett.com/?p=17090

Buying a home is an exciting process, but when your closing date gets delayed…a single phone call can quickly ramp stress levels up from 0 to 50.

Best case, a delayed closing is a minor inconvenience. Worst case, you planned to move in that day and are now stranded with dogs, kids, moving vans and no house to put them all in.

Unfortunately, closing delays are very common, but understanding the reasons behind these delays can help you prepare for and navigate the challenges if the worst does happen to you.

Here are some of the top reasons a home closing might get delayed:

1. Issues with Financing

One of the most common reasons for a delay is last-minute financing issues.

Your lender will conduct a thorough review of your finances, credit score, employment history, and debt-to-income ratio before giving final approval. Any red flags, like a change in employment or a significant financial transaction, can cause delays.

There are multiple people involved behind the scenes working to get your loan and documents prepared – loan officer, loan processor, underwriter, appraiser, title company – just to name a few. Because so many parties are involved, minor details can often take awhile to get sorted through.

2. Title Problems

Title issues, such as unpaid property taxes, outstanding liens, or boundary disputes, can also hold up a closing. These need to be cleared before the transaction can proceed, which might involve additional paperwork, research, or legal work to ensure a “clean” title.

3. Appraisal Challenges

Your lender will require an appraisal to ensure the home’s value matches the loan amount.

If the appraisal comes back lower than expected, there are a few options. You and the seller can negotiate a mutually acceptable price, which could include lowering the sale’s price, requesting repairs, or offering concessions.

If it is a VA Home Loan, you can also take advantage of the Tidewater Initiative and Reconsideration of Value to try and challenge the appraisal.

If all else fails, you can use the VA escape clause to walk away.

4. Home Inspection Issues

Home inspections sometimes reveal repairs or issues that need to be addressed before the sale. If significant repairs are required, it may lead to further negotiations with you and the seller, especially if contractors are needed to resolve these issues before the sale can proceed.

5. Document and Scheduling Delays

With so many people involved—lenders, real estate agents, inspectors, attorneys, and title companies—scheduling conflicts and delayed documentation may occur. Errors on closing documents or last-minute changes can also slow down the process, as every document must be checked and signed before closing.

That is why it is important to submit all of your documents early in the process!

How to Avoid Closing Delays

While one party can’t control every aspect of the process (even though we wish we could!) being proactive and having open communication with everyone involved can help.

For buyers, it’s crucial to avoid any significant financial changes such as purchasing a car or opening a new credit card. Make sure you stay in close contact with your lender, and be prepared for potential inspection or appraisal negotiations.

Sellers can help by ensuring the property is ready for inspection and by being responsive to requests. Working with an experienced WeVett agent can also help smooth out potential roadblocks.

 

One final note for all the stressed home buyers and sellers out there.

Everyone is human and mistakes can be made, even by professionals. Kindness during a trying time can go a long way.

Take a deep breath and remind yourself that at the end of the day, no one in the history of the world has died from a delayed closing, and this too shall pass no matter how frustrating it feels in the moment.

Hang in there!

]]> VA Loan Minimum Property Requirements https://wevett.com/2024/blog/loans/va/va-loan-minimum-property-requirements/ Tue, 30 Apr 2024 15:58:19 +0000 https://wevett.com/?p=12994

When you purchase a home using the VA Home Loan, the VA uses what they call Minimum Property Requirements (MPR’s) to ensure the home qualifies. It is sometimes also referred to as VA Loan Inspection Requirements.

The VA’s goal by enforcing MPRs is to make sure military and Veterans have safe and functional homes to live in. This decreases the likelihood that a service member will be taken advantage of, especially since many active-duty military may not have the benefit of local real estate knowledge before their purchase.

A VA-assigned appraiser will check the property value and ensure it complies with the laundry list of VA loan appraisal requirements. 

We’ve summarized them all for you below!

What is included on the VA Minimum Property Requirements (MPRs) list?

Topic Name

Simple Breakdown

Marketable Real Estate

Must be a residential dwelling that would appeal to most buyers

Space Requirements

Must be big enough for occupants to use comfortably and includes all needed facilities

Access

Must be safely accessible year-round by foot or vehicle in all-weather conditions

Encroachments

Any encroachments on property line must be resolved before loan is approved

Drainage & Topography

Waste and water must flow off without ponding, no risk of mudslides, falling rocks, or avalanches 

Geological or Soil Instability, Subsidence, and Sinkholes

Must report any potential instability like cracks, sinkholes, foundation damage, or settlement problems 

Special Flood Hazard Area

Properties in SFHA must be covered by flood insurance; properties that flood regularly are not eligible

Coastal Barrier Resource System

Properties located in CBRS are not eligible

Non-Residential Use

Home must be used as primary residence and comply with local zoning requirements 

Zoning

Must comply with all applicable zoning ordinances

Local Housing & Planning Authority Code Enforcement

If repairs are needed to bring property up to code, appraisal must be made subject to these repairs. 

Utilities

Must be safe and move-in ready with access to safe drinking water, sewer, gas, and electricity

Water Supply & Sanitary Facilities

Must have continuous supply of safe water for drinking and hot water for bathing

Individual Water Supply

Must be sufficient and safe for human consumption

Individual Sewage Disposal

Must be adequate and not endanger public health

Shared Wells & Sewage Disposal

Even if shared by 2 or more properties, it must be safe for human consumption and supply all properties equally 

Community Water Supply & Sewage Disposal

Must report that property is on community water/sewage and water/sewage must be safe and adequately supply all properties

Hazards

Must be free of hazards that would prevent occupant from enjoying their property

Defective Conditions

Any damage or issue that could affect the property’s value must be remediated before the VA loan is approved

Mechanical Systems

Must be safe and in good working condition

Heating

Must be able to maintain a temperature of at least 50 degrees in all areas with plumbing

Leased Mechanical Systems & Equipment

Any leased equipment such as fuel storage, solar panels, wind systems, etc. must be included in the appraisal report, but will not affect the home value

Alternative Energy Equipment

As long as equipment is not leased, their value and marketability are included in the VA appraisal report 

Roof

Must be prevent entrance of moisture with no visible defects from the inside such as noticeable leaks

Attics

If readily accessible, condition must be reported

Crawl Space

Must contain adequate ventilation and an absence of excess moisture. 

Basements

Must inspect the basement for any signs of dampness or structural issues that may affect the health and safety of the occupants

Swimming Pool

Must determine its condition and effect on property value. Damages will be subject to repairs. 

Burglar Bars

Must be equipped with quick-release mechanisms on at least one window per room unless there is an exterior door from the bedroom

Lead-Based Paint

Any chipping paint on the exterior of the house must be remediated. If built before 1978, lead-based paint guidelines must be followed.

Wood Destroying Insects/Fungus/Dry Rot

Any evidence of issues must be reported and any damage must be fixed; in areas with termites, a termite inspection is required

Radon Gas

Builder must certify that radon-resistant construction techniques were used according to local codes for new construction properties

Potential Environmental Problems

Any possible sources of contamination on the property must follow all local regulations and requirements

Stationary Storage Tanks

Appraiser must report presence of any 1000+ gallon storage tanks containing flammable or explosive material if located within 300-feet of the property and determine possible effect on property value

Mineral, Oil, and Gas Reservations & Leases

Must consider any property rights and adverse influence on neighboring properties

High Voltage Electric Transmission Lines

No part of the residential dwelling may be located within a high-voltage electric transmission line easement 

High-Pressure Gas & Liquid Petroleum Pipelines

No part of the residential dwelling may be located within high-pressure gas or liquid petroleum pipeline easement

Properties Near Airport

Appraiser must evaluate the impact of noise and light pollution on the property’s value. Borrower must acknowledge location of the property if in a Clear Zone or accident protection zone

Are you looking for a detailed explanation of the VA’s minimum property requirements? Read the full list of VA MPRs here.

You’re still reading? Good. That list can seem a bit overwhelming. Don’t worry though, the VA appraisal is a good thing – it’s helping you determine whether or not the home will be a blessing in the long-run.

What happens if the home does not meet the VA requirements?

The VA will not approve a loan on a property that does not comply with the VA MPRs.

However, if the Seller agrees to repairs, the home can be appraised again to verify that it now meets requirements. Once the repairs are made, an appraisal can be rescheduled.

Difference between a VA Appraisal and a Home Inspection

Home inspections are not the same as appraisals. An appraisal is verifying value, while an inspection is verifying the condition of the home.

The VA Appraisal IS NOT a replacement for a whole home inspection. Although it is more extensive than a traditional appraisal, it is not in-depth enough to cover all of the issues that a home might contain.

The VA does not require homebuyers to get an inspection, however, the last thing you want is to decline the inspection thinking the appraisal covered it all, only to find out later that a latent or hidden structural issue is going to cost you $50,000+ to fix.

We highly recommend that you don’t skip the inspection, the $300-$500 you spend is worth the extra security blanket.

Short Appraisal Remedies: Tidewater and Reconsideration of Value

One more note on VA appraisals – if the purchase price is in question or the property under appraises, the appraiser has the option to speak to your lender to find support for the home’s value. This is a major benefit that only the VA program offers!

This can be done through two methods:

Tidewater Initiative

Reconsideration of Value

To learn more about both of these, check out our two-part series on VA Short Appraisals.

Still have questions? Let’s discuss! Give us a call at 316-669-5272 or email at loans@wevett.com

]]> Pros and Cons of Buying a Home in the Military https://wevett.com/2024/blog/general/pros-and-cons-of-buying-a-home-in-the-military/ Fri, 08 Mar 2024 19:28:40 +0000 https://wevett.com/?p=11257

You already raised your right hand and made the long-term commitment of military service. Are you ready for another commitment? Next step, buying a home while on active duty.

Every situation is different and there is no one-size-fits-all answer to the question, “Should I buy a house while in the military?” There are a few ground rules though that you can establish to help make the decision more clear.

Should you buy a home in the military?

Purchasing a home is one of the largest investments you will likely make over the course of your life. Approach the decision with caution, especially knowing the level of uncertainty the military lifestyle throws into the equation.

Let’s start with your most obvious questions first:

Environment

Will buying a home provide the best available environment for you and your family at your new assignment?

To answer this question, you will need to flex your research muscles. What housing is available to you at your new assignment?

There are usually four options to consider:

  • On-Base Government-Owned Rental
  • On-Base Privately-Owned Rental
  • Off-Base Privately-Owned Rental
  • Off-Base House Purchase

Not every location is the best place to buy. Some assignments have excellent, readily available on-base options that check almost all the boxes for military families. Other locations have limited on-base options and the quality is lacking.

Sometimes, the areas around the military installation are not the most appealing for family life, yet other locations have bustling neighborhoods within a short commute.

Every single spot is different, so get insider knowledge before writing off one housing option or another.

Here are a few resources you can use to tackle this initial research phase:

Finances

Can you purchase a home and see financial gains or, at a minimum, no financial loss?

Finances will (and should!) play a big part in the home buying decision. The costs associated with both renting a home and buying a home can be formidable and going in blind is a recipe for long-term financial stress.

First, figure out your Basic Housing Allowance (BAH). Here’s a handy BAH Calculator that will tell you how much you’ll be awarded at your next assignment.

Typically your on-base, government housing options are going to cost the same as your BAH rate. Privately-owned rentals near military installations will often track BAH rates as well and rental costs will be close to your monthly allowance.

Sometimes though you can find rentals that are less than your BAH and you will be able to pocket the extra. Just don’t forget to account for utilities (water, electricity, gas, trash, etc.) if they are not included in your rent cost.

If you buy a home, make sure you calculate your monthly mortgage payment and utility costs and compare with your BAH rate.

Second, how long are you going to be stationed in this location? If it is less than three years and you don’t intend to turn your home into a long-term rental, then it is usually not a good idea to buy a house.

Our Buy vs Rent Classroom series dives into this much deeper, but the gist of it is, you could end up underwater on your home if you go to sell too soon. You won’t have enough time to recoup your purchase costs and could end up having to bring money to the closing table.

Process

Will the process of buying, selling and/or renting be a huge burden or only a minor inconvenience?

Buying a home can be a process. Don’t underestimate the time and thought it takes to search for and close on a home. If you are in a complicated transition period – deployment, career change, family circumstances, etc. – make sure there is someone with the capacity to take on the communication and execution needs of a home purchase.

A typical home purchase takes about 30 days to complete. This excludes the time it takes to gather your purchase team together, secure financing and find a home. If you’re on a short timeline, you will need to move quickly to manage a door-to-door move.

Selling a home is also a process. Once again, make sure you have a point person willing to take on the cleaning, staging, listing and contract stages of getting the home sold.

If you choose to rent out the home when you PCS next, you will need to either find a property management company to take care of the property and manage leasing and tenants while you are gone, or you will have to take on the tasks of managing your property, finding tenants, etc. from afar.

Importance

How important is owning a home to you?

For some people, all the challenges above are negligible. The importance of owning their home outweighs the risks– and that is okay! As long as you go in knowing what you are getting into, then you’ll walk away happy with the result.

If owning a home is important to you, someday, but it’s not the right time or situation this time around – that is okay too. Renting does not have to be permanent. There will be a time in the future when the stars align and you are ready to make the leap.

Pros and Cons of Buying a House in the Military

ProsCons
Total CustomizationUpfront Costs
Build EquityResponsibilities when PCSING
Tax BreaksMaintenance and Repairs
Potential Passive Income
VA Home Loans

The Pros

Total Customization

When you buy a home, it is 100% yours. Want to rip out a wall? Go ahead. Plan to lay brick pavers in the backyard? Go for it! You are the one calling the shots for your property, and unless you are building new structures that need city approval or you have a strict HOA, then the only thing holding you back is your own creativity and budget.

In most cases, renting a home doesn’t give you that flexibility. If you have a lenient landlord, you might be able to paint a wall or plant flowers, but in general, the changes you can make are minimal.

Owning a home in the military gives you the chance to make your PCS location feel more like home.

Build Equity

Building equity is huge for your long term financial future. Paying down your mortgage helps you to build equity, and if you are fortunate, your home might also appreciate in value. The more equity you’ve built, the more money you will walk away with whenever you decide to sell your home!

One of our goals at WeVett is to help you have a paid for or nearly paid for home by the time you leave military service. One of the ways you can accomplish this is by first making the right housing decisions at each assignment and second, working to build up that equity each time you decide to buy.

Many times renting can be the right answer, financially, for the short-term or for specific assignments. Renting, however, will never build you equity.

Tax Breaks

Homeowners can save money during tax season for owning a home in the military! Certain homeowner expenses can be deducted when filing taxes – mortgage interest, discount points, property taxes, home improvements, capital gains, etc.

Granted, renters do not pay certain fees and taxes, like property tax, but they also don’t receive any housing tax breaks either.

Potential Passive Income

If creating a rental portfolio is of interest to you, buying a home is the first step in that process. Many military families create a steady stream of passive income by making wise home purchases (based on the rental market and demand) that they turn into long or short term rentals after they PCS.

The key here is researching the rental market before buying your house. Buying a home and just assuming it can be a rental is the absolute wrong way to go about creating passive income. If done incorrectly, you could end up with a vacant property and paying a mortgage for a home you don’t live in.

Our Sell vs Rent Classroom series gives you a step-by-step analysis of how to analyze a home as a potential rental. Check it out before deciding whether or not becoming a landlord is the right path for you.

VA Home Loans

A major advantage of buying a home in the military is access to the VA loan. Backed by Veterans’ Affairs, the VA loan offers military huge savings for home purchases, such as no down payment, no private mortgage insurance, and lower interest rates than traditional home loans.

Access to this benefit alone can often mean the difference between renting and buying a house for many people. If you want to compare your options with the VA loan in mind, we offer free consultations to walk through whether your situation is best for buying or renting. Contact our team here.

The Cons

Upfront Costs

It usually costs more money upfront to buy a home than it does to rent a home. Your mortgage payment can often be cheaper than monthly rent, but the initial closing costs of a home purchase will usually be 2%-5% of the purchase price of the house.

On a $300,000 home, that might end up anywhere from $6,000 to $15,000. That also excludes any down payment requirements on the loan.

In comparison, rentals only require a security deposit, pet deposit, and potentially 1-2 months of rent payment upfront – far more affordable than a down payment!

Responsibilities when PCSing

Owning a home in the military becomes more complicated when it is time to PCS. Making the sell vs rent decision, packing, prepping your home, listing or leasing, and following through on the sales or management contract all get added on top of your typical PCS process.

If you are in a rental, your only responsibility is packing, cleaning and closing out any other requests from the landlord.

Maintenance and Repairs

If you are renting a home and the dishwasher starts leaking, you have the luxury of picking up the phone and calling your landlord – on their dime. If you own the home…well…better get to work, or call the repairman!

Many home experts say you should expect to pay 1-4% of the purchase price each year on maintenance and repairs. For this very reason it’s extremely important to check the major systems and structure of the home (HVAC, roof, windows, siding) before you make the purchase. The last thing you want is to have an unforeseen major issue deplete your savings!

Buying a house while on active duty can be a blessing and will often make your duty station truly feel like home.

Ask the right questions, weigh the pros and cons, and if the time is right, we would be happy to help you make that homeownership goal a reality!

Get started on the process with us: www.wevett.com/getstarted

]]> Buying vs Building a House: Which is Better in the Military? https://wevett.com/2023/blog/homebuying/buy-vs-build/ Tue, 14 Mar 2023 21:30:37 +0000 https://wevett.com/?p=1351

The Buy vs Build Decision Point

When it comes to military housing decisions, there are a lot of options to choose from; buy a house, rent a house, base housing, pitpads, crashpads, your friend’s couch, and for some of you, one of those refurbished RVs planted at the RV park. 

Lately though, we’ve seen a big wave of military families choosing to build a home or purchase a recently finished new build at their new PCS location. 

Considering the hurdles that come with building a home and a long-distance purchase, this is an interesting trend.

Over the last several years there was a boom in residential construction. New homes were flying up all over the place. Now, with the changing market conditions and higher interest rates on home loans, many builders are looking to offload their oversupply of houses and sell their existing lots.

In fact, one military specialized real estate agent we work with at Luke Air Force Base in Arizona, recently mentioned that the supply of existing homes in his area was down nearly 50% this year. With fewer existing homes to choose from, new builds are suddenly at the forefront of the real estate market.

As a military home buyer, what should you take into account if you are considering building or purchasing a new build over an existing home?

We came up with a pros and cons list to lend you a hand.

Buying an Existing Home

The Pros

Easier

It’s usually easier to buy an existing house, especially if you are a first-time home buyer. Not only is it typically more affordable, but you get the vast experience of owning a home before taking on the adventure of building one. The floorplan, light fixtures, door handles, countertops, etc. already exist, so all you have to do is furnish the place and possibly undertake minor updates, like paint and new carpet.

Established

When you’re looking to buy a home, it is usually in an already established neighborhood… with TREES! ) We’re talking about the big, beautiful trees that have been there for years…not those little scrawny ones the builder just planted. You won’t have to battle a bulldozer for road space or look at the giant mounds of dirt waiting to be redistributed in the developing lot next to yours.  

The established neighborhoods are also likely to be close to major amenities and offer more options on location which can be important for schools and optimizing your driving distance to base. 

Readily Available

During PCS season, you’re usually in a time crunch, and buying an existing house gives you the option to relocate fast into a move-in ready home.

The Cons

Fixed Layout and Features

Buying a home means you have to settle for what the house already has to offer…unless you’re a closet DIY-er and plan on knocking down some walls yourself. (Hey, Chip and Joanna!) 

If you plan on renovations, don’t forget to add in what you will spend out-of-pocket on updates when you are comparing prices of new builds vs existing homes. You might be surprised at the current cost of labor and materials.

Bidding Wars

Depending on the specific market, the buying experience could come with additional stress in the form of high competition. In many cities, bidding wars are still common, and you may end up paying above asking price. 

Home Inspections and Maintenance

When you’re buying an existing home, the home inspector will have a much larger “laundry” list of fixes than if you purchase a new build. Also, you’ll have to look out for more maintenance issues from an older home and varying costs of bills that come with less energy efficient houses. 

Building a Home

The Pros

New, Shiny, Customizable

A brand-new house is shiny, new, and completely customizable! If you work with the builder from the very beginning, you get to pick your ideal floor plan, add in that stainless steel fridge with the built-in Amazon Alexa, and prioritize a big walk-in closet with endless storage for all those pairs of combat boots.

Warranties & Limited Maintenance Issues

Since it is brand new, the home should have fewer maintenance issues, and it will often come with a builder’s warranty for major systems. New appliances usually have similar guarantees.

Lower Cost on Utilities

New homes are also built to be energy efficient. Low flow toilets, tightly sealed windows, efficient HVAC systems, etc. are all key to keeping your utility costs low.

The Cons

Construction Delays

The supply chain is still struggling from COVID-19 woes; and production for major items, like cabinets and garage doors has been slowed. According to the National Association of Realtors, in 2022, 85% of new construction buyers experienced some sort of delay, with 50% waiting three months past the estimated completion date or longer for their homes to be move-in ready.

In fact, we knew multiple military families who had to scramble for alternate arrangements last year after getting snagged by building delays. One family was in a hotel for several months!

More Complicated Financing

If you are purchasing a home from a builder, beware of construction delays causing challenges with your financing. If your home build is delayed, you could potentially lose the interest rate you initially locked in and also have to submit updated documentation for your loan.

If you’re wanting to build from the ground up with a VA construction loan, you will have to find a licensed and insured VA-approved builder, submit a complete set of construction plans to your lender, appraise those plans, and provide additional documentation. 

Building from a Distance

Buying a house from a distance is difficult, but building a house is a whole different animal. Unless you have the luxury of visiting the area multiple times during the build process, there is a lot that you are leaving up to chance and the builder’s prerogative. While the builder is incentivized to finish the home, they’re not necessarily going to go out of their way to make sure you’re 100% happy with every detail. 

If you are building from a distance, it’s even more crucial to have your own independent real estate agent represent you so they can monitor progress and make sure all of the details are correct. (And when we say independent real estate agent, we don’t mean the agent that the builder offers. Their interests are not necessarily your interests. If you’re in a situation like this, our sister company, WeVett Realty can get you linked up with a Realtor that will fight for your best interest first.)

Don't Forget the Cost Comparison

Every location and market is different when it comes to typical costs for buying and building. We’ve compiled a list of the standard cost categories for building a house and also the costs associated with purchasing a home. For most new builds, you will need to account for both.

Check out the chart below

Bottom Line

Buying or building is not a one-size-fits-all decision. Be diligent about asking questions in advance and be realistic based on the market and your specific situation.

The best way to make sure you’ve covered all your bases is to talk it over with an experienced military focused real estate agent at your new PCS location. They know the local market and can advise you on existing home inventory and also give you background on builders and new construction.

Not sure where to find a real estate agent? Our sister company, WeVett Realty can link you up with a military friendly real estate agent here.

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