Home Buying Checklist for First-Time Military Buyers

Buying your first home as a military member? Here’s what you need to know:

• PCS Moves: Military families relocate every 2–3 years, so timing your home purchase around Permanent Change of Station (PCS) orders is crucial.
• VA Loans: These loans offer no down payment, lower interest rates, and no private mortgage insurance. Most lenders require a credit score of 620 or higher.
• Budgeting: Use your Basic Allowance for Housing (BAH) to calculate your housing budget. Plan for extra costs like property taxes, utilities, and maintenance.
• Emergency Fund: Relocating costs about $1,725 on average. Save 3–6 months of living expenses to cover unexpected costs.
• Neighborhood Choice: Proximity to base, quality schools, and strong community networks are key for military families. Areas like Colorado Springs offer military-friendly neighborhoods.
• Closing Process: Prepare for costs like VA appraisal fees, funding fees, and local taxes. Review all documents carefully before finalizing.

Quick Overview:

Pro Tip: Start early, stay organized, and work with professionals familiar with military moves and VA loans.

Step 1: Military Home Buying Financial Prep

BAH and Monthly Budget Planning

Your Basic Allowance for Housing (BAH) can serve as a guide to set your housing budget. In 2025, BAH rates saw a 5.4% increase, mirroring the rise from 2024.

• Calculate Your Total BAH
  To determine your exact rate, use the Defense Travel Management Office‘s BAH Rate Lookup tool. Keep in mind that service members are required to contribute between $84 and $194 monthly toward housing expenses.
• Account for Additional Costs
  Your housing budget should include more than just your mortgage. Factor in:
  • Property taxes
  • Home insurance
  • Utility bills
  • HOA fees
  • Maintenance funds
  • Commuting expenses to base

"This monthly allowance is for qualified service members stationed in areas where government quarters aren’t provided. It’s a stipend that helps service members keep up with housing costs if they’re living off-post or off-base. There aren’t restrictions on BAH that limit service members to renting. You can use this monthly allowance to help you qualify for a VA loan and buy a home."
– Chris Birk, Vice President of Mortgage Insight, Veterans United

Once you’ve nailed down your housing budget, the next step is securing pre-qualification for a VA loan.

VA Loan Pre-Qualification Steps

Before you start house hunting, getting pre-qualified for a VA loan is a must. This process usually takes 1–3 days and requires the following documents:

• Recent pay stubs
• Bank statements
• Tax returns
• Certificate of Eligibility (COE)
• DD 214 (for veterans)
• Credit report

While the VA itself doesn’t set a minimum credit score, most lenders look for a score of at least 620. It’s a good idea to check your credit score early so you have time to address any issues. Once pre-qualified, you’ll be ready to tackle the logistics of your permanent change of station (PCS).

PCS Emergency Fund Setup

Relocating comes with costs – on average, about $1,725 in non-reimbursable expenses per move. To prepare, aim to build up savings that cover:

• 3–6 months of living expenses
• 3–5% of your home’s price for unexpected costs
• Extra funds for temporary housing

Unfortunately, nearly half of veteran families have less than $500 in emergency savings – or none at all. To build your fund, set up automatic transfers from each paycheck into a dedicated emergency account.

"An emergency fund, your fallback plan, provides you options enabling you to navigate life’s challenges with resilience and confidence. For military families and veterans, this preparedness is a tactic you can employ today to increase your readiness."
– National Debt Relief

With credit card interest rates exceeding 24% as of January 2025, having emergency savings can shield you from high-interest debt during unexpected moves or housing transitions.

Step 2: Military Move Planning

PCS Orders and Home Closing Timeline

When planning a home purchase around PCS orders, timing is everything. To avoid any gaps in housing, start by confirming your report date at the new duty station and work backward to build a practical timeline that aligns with your move.

Here are some steps to help you stay on track:

• Request House-Hunting Leave: You can apply for up to 10 days of Permissive Temporary Duty (PTDY) to search for a home before your report date.
• Include a PCS Contingency Clause: Add this clause to your purchase offer to safeguard yourself in case your orders change unexpectedly.

"It’s essential to understand the specifics of your PCS orders before making any real estate decisions."

Deployment and TDY Backup Plans

Deployments or temporary duty (TDY) assignments can add complexity to your move, so having backup plans is crucial. While the Servicemembers Civil Relief Act (SCRA) offers legal and financial protections during active duty, additional preparation can make all the difference.

Here’s how to get ready:

• Legal Documentation: Visit your base’s legal office to set up a Power of Attorney (POA). This will allow a trusted representative to handle real estate matters on your behalf if you’re unavailable.
• VA Loan Occupancy Requirements: Check these requirements early. If you’re deployed, your spouse can meet the occupancy criteria, or you may qualify for an extension.
• Financial Planning: Double-check your Leave and Earnings Statement (LES) for accuracy, set up automated bill payments, and set aside extra funds to cover unexpected expenses during deployment.

"Soldiers who are distracted by financial issues at home are not fully focused on fighting the enemy, thereby decreasing mission readiness." – Army Secretary John McHugh

Once your contingency plans are in place, the next step is to figure out temporary housing if your PCS timeline and home closing date don’t match up.

Short-Term Housing Options

When your closing date and PCS schedule don’t line up, temporary housing can bridge the gap. Here’s a breakdown of the most common options:

For moves within the continental U.S. (CONUS), Temporary Lodging Expense (TLE) can help offset costs. For overseas moves, Temporary Lodging Allowance (TLA) applies. Since accommodations fill up quickly during peak PCS season (May–August), it’s wise to book as early as possible.

A Beginner’s Guide to VA Loans: First-Time Homebuyer Edition

Step 3: Finding Military-Ready Neighborhoods

When planning your move, choosing a neighborhood that meets the needs of military families is a key step toward long-term comfort and convenience.

Base Access and Local Services

Look for neighborhoods with easy commutes to your duty station in Colorado Springs. This city has several areas that provide direct access to military installations, making daily life more manageable. For example, the Powers Corridor offers central access to multiple bases and is surrounded by shopping and dining options. Another popular area, Briargate, is conveniently located near the Air Force Academy and Peterson Space Force Base, all while maintaining a welcoming community vibe. These areas often come with the added bonus of quality schools and supportive community networks, which can make all the difference for military families.

Schools and Family Resources

Colorado’s school choice policy allows military families to enroll their children in schools outside their assigned district, provided there’s space available. Neighborhoods like Briargate, Stetson Hills, and Wolf Ranch are frequently praised for their excellent schools and family-friendly resources.

Additionally, the Peterson Space Force Base School Liaison Program is a valuable resource for military families. They provide guidance on comparing school districts, navigating special education programs, and finding before- and after-school care. They can also assist with enrollment, helping families settle into their new routines with ease.

Beyond academics, these neighborhoods are known for their strong community networks, ensuring families feel supported both in and out of school.

Military Community Networks

Colorado Springs is home to a robust network of support for military families. Since 2004, the Home Front Military Network has provided over $6 million in direct financial aid and assisted more than 500,000 service members. Other key resources include:

• Mt. Carmel Veterans Center – Offers financial wellness programs and resource navigation.
• PEAK Parent Center – Specializes in resources for military families with special needs.
• Military OneSource – Provides 24/7 support services and connects families to local resources.

Neighborhoods like Security-Widefield and Fountain Valley are particularly known for their strong military presence and active community support networks. For more detailed information on local schools, housing, and community resources, reach out to your Military Family Readiness Center. They can provide personalized advice to help you find the perfect neighborhood for your family.

Step 4: VA Loan Benefits Guide

Once your relocation plans and housing preferences are sorted, it’s time to make the most of your VA loan benefits.

VA Loan Amount and Eligibility Rules

Start by understanding your VA loan eligibility and how much you can borrow. For 2025, the standard VA loan limit is $806,500 in most U.S. counties. In high-cost areas, this amount can go up to $1,209,750. However, veterans with full entitlement aren’t restricted by these limits – they can borrow as much as a lender is willing to approve without needing a down payment.

To qualify for a VA loan, you must meet specific service requirements. Here’s a quick breakdown:

While the VA doesn’t set a minimum credit score, most lenders typically require a score of 620 or higher. You’ll also need a Certificate of Eligibility (COE), which can be obtained through the VA’s eBenefits portal or a VA-approved lender.

VA Funding Fee Waiver Requirements

The VA funding fee, which helps sustain the loan program, can be waived for eligible veterans and service members under certain conditions. You may qualify for a waiver if you meet any of the following criteria:

• You’re receiving VA compensation for service-connected disabilities.
• You’re an active-duty service member who has received a Purple Heart.
• You’re a surviving spouse receiving Dependency and Indemnity Compensation (DIC).
• You have a pre-discharge disability claim that establishes eligibility.

"For most eligible borrowers, your VA funding fee exemption status will be automatically reflected on your VA Certificate of Eligibility (COE) for home loans." – Terrence Hayes, Former VA Press Secretary

If your exemption isn’t confirmed before closing, you’ll need to pay the fee initially. However, you can request a refund once your exemption is verified. If you have any questions about your exemption status, the VA’s helpline at 877-827-3702 is available to assist.

Once you’ve clarified your eligibility and any potential fee waivers, it’s worth exploring refinance options under the VA IRRRL program.

VA IRRRL Refinance Options

The VA Interest Rate Reduction Refinance Loan (IRRRL) is a straightforward way to refinance an existing VA loan. Your basic entitlement starts at $36,000, but for loans exceeding $144,000, additional entitlement is available. For 2025, the maximum entitlement amount is set at $144,000.

For instance, if you’re purchasing a home in Fairfax County, VA, your maximum entitlement would be $287,456.25 – 25% of the area’s loan limit.

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Step 5: Military-Friendly Home Features

When it comes to finding the right home, military families face unique challenges. Beyond finances and logistics, homes that offer durability, flexibility, and smart technology can make all the difference.

Long-Term Home Durability

Durability is a top priority for military families, especially with the frequent moves and varying environments they may encounter. Choosing high-quality materials can help ensure your home stands the test of time.

Here are some features to consider:

• Flooring: Scratch-resistant hardwood or luxury vinyl planks are ideal for withstanding heavy use.
• Countertops: Quartz or granite countertops resist chips, stains, and wear.
• Cabinetry: Solid wood or high-grade laminate cabinets are easy to maintain and built to last.
• Wall Finishes: Washable, scuff-resistant paint, such as Glidden’s "Limitless", the 2024 Color of the Year, can keep walls looking fresh despite the wear and tear of daily life.

Multi-Purpose Room Design

For military families, adaptable spaces are a must. Needs can change quickly, whether it’s setting up a home office, a playroom, or even extra storage. Take, for example, a home in Louisville, Kentucky, where an unfinished attic was transformed into an 800-square-foot multi-functional space. This not only added value to the property but also provided much-needed flexibility.

Here are some design features that can make a room more versatile:

With thoughtful planning, these adaptable elements can ensure your home adjusts to your family’s evolving needs.

Remote Home Monitoring Systems

For military personnel, home security is more than just a convenience – it’s peace of mind, especially during deployments. The global smart home device market is expected to surpass $167 billion by 2025, showing just how popular these systems have become.

Take it from Tyson B., a military member from Oak Grove, Kentucky:

"What really sold me, though, was the wireless monitoring and the ability to control the entire system from my phone. I’m in the military, so I’m gone a lot. Knowing my family would be safe while I was gone was a huge bonus."

Smart home monitoring systems combine security and convenience, offering features like:

• 24/7 Professional Monitoring: Provides constant protection, even when you’re away.
• Mobile App Control: Adjust lights, temperature, and security settings remotely.
• Video Surveillance: Check in on your family through secure camera feeds.
• Smart Locks: Grant access to maintenance workers or handle emergencies remotely.

And there’s a bonus: many insurance companies offer discounts of 5% to 20% on premiums for homes with smart security systems. It’s a practical investment that benefits both your safety and your wallet.

Step 6: Colorado Home Closing Guide

Closing on a home in Colorado comes with its own set of local rules and requirements, so being well-prepared is key.

Colorado Weather Protection Requirements

Before finalizing your purchase, it’s a good idea to have a professional inspect the roofing, windows, and foundation drainage. Additionally, consider conducting a home energy audit to identify potential energy efficiency improvements. For those who qualify, the Colorado Weatherization Assistance Program provides free services to enhance energy efficiency.

Colorado Water Rights Basics

Colorado follows the Prior Appropriation System for water rights, which prioritizes water usage based on historical claims. The state is divided into seven water divisions, each overseen by its own Water Court. Before closing, ensure you review the property’s water rights documentation, understand any usage restrictions, confirm necessary permits, and examine the property’s water usage history.

Local Closing Costs and Process

Closing costs in Colorado for VA loans typically range between 3% and 5% of the loan amount. Here are some VA-specific costs to keep in mind:

• VA appraisal fees: These can cost anywhere from $525 to $1,550.
• VA funding fee: Depending on circumstances, this fee can range from 0.5% to 3.3% of the loan amount.
• Lender charges: These are capped at 1% of the loan amount.

To ensure everything goes smoothly on closing day, follow these steps:

• Review the Closing Disclosure: This document outlines all financial details and required payments. You’ll receive it at least three business days before closing, so take the time to review it carefully.
• Final Property Inspection: Schedule a walk-through within 24 hours of closing. This is your last chance to confirm that all agreed-upon repairs have been completed, the property is in the expected condition, and any included fixtures and appliances are accounted for.
• Prepare Your Payment: Double-check the payment amount and confirm acceptable payment methods – typically a wire transfer or cashier’s check – with your closing agent ahead of time.

Step 7: After Your Home Purchase

PCS Rental Property Management

Handling your home during a Permanent Change of Station (PCS) requires thoughtful planning. You’ll need to weigh the pros and cons of selling versus renting, considering the current market and your financial goals. Another key decision is whether you’ll manage the property yourself or hire a professional property manager.

Here’s an example: In 2023, WJD Management rolled out a program offering military homeowners one month of free property management services to help ease the PCS transition.

Key areas of property management include:

• Tenant Screening: This involves checking credit history, rental history, employment, military status, and reaching out to previous landlords.
• Legal Documentation: Make sure your lease includes a military clause for PCS or deployment, outlines maintenance responsibilities, addresses pet policies and subletting rules, and complies with the Servicemembers Civil Relief Act (SCRA).

Next, let’s look at how VA loan transfer options can make selling your home easier.

VA Loan Transfer Options

One of the unique perks of VA loans is the ability to transfer them through loan assumption. This can be a big selling point, especially since, as of October 2024, nearly 84% of VA homeowners have mortgage rates below 5% – a tempting offer for potential buyers.

Here are the basics of loan assumption:

• Assumption Fee: Buyers pay a 0.5% funding fee based on the remaining loan balance.
• Buyer Eligibility: Both veterans and civilians can assume VA loans, provided they get lender approval.
• Entitlement Impact: If the buyer isn’t a veteran, the seller’s VA entitlement stays tied to the loan until it’s fully paid off.

Now, let’s dive into programs in Colorado designed to support military families.

Colorado Homeowner Programs

Colorado has several initiatives aimed at helping military families, such as the CHFA HomeAccess Program. This program offers perks like down payment assistance and property tax exemptions. For example, income limits go up to $162,960, and the loan limit is set at $806,500.

Here’s what’s available:

• Down Payment Assistance: Up to $25,000 with 0% interest through the CHFA program.
• Property Tax Exemptions: Disabled veterans can get 50% off property taxes on the first $200,000 of their home’s value.
• Veterans Service Officers (VSOs): These professionals provide additional support services.

A recent update in 2025 expanded the Disabled Veteran Property Tax Exemption to include veterans with individual unemployable ratings. For more details, reach out to the Colorado Department of Military and Veterans Affairs (DMVA).

Conclusion: Military Home Buying Success

Buying a home for the first time as a military member requires thoughtful preparation and a solid understanding of the benefits available to you. The VA loan program stands out as a key resource, offering perks like no down payment, competitive interest rates, and no need for private mortgage insurance.

"While the process may seem intimidating, proper preparation makes home buying achievable".

Take Sgt. Davis, for example. He purchased a $340,000 home in Cibolo by paying just $4,000 at closing, thanks to rolling the VA funding fee into his loan. This highlights how the VA loan can significantly reduce upfront costs.

For those stationed in Colorado Springs, location is a big factor. The city’s strong military presence – with over 100,000 residents working in the military sector – creates a supportive environment for service members and their families. Plus, being close to installations like Fort Carson and Peterson Air Force Base adds convenience and fosters community ties.

Here are some key factors to ensure a smooth home-buying journey:

• Financial Readiness: Obtain your Certificate of Eligibility (COE) early and get pre-approved to improve your chances as a buyer.
• Timeline Management: Begin your home search well ahead of your PCS date to avoid last-minute stress.
• Documentation: Keep essential documents, such as military paperwork, income proof, and tax returns, well-organized and accessible.
• Support Network: Work with real estate professionals who are familiar with military moves and VA loan processes.

Taking the time to plan carefully now can lead to long-term benefits. Be prepared for routine home maintenance and factor in potential deployments. Additionally, explore local programs to help increase your home’s value over time.

FAQs

How can military families plan their home purchase around PCS orders to avoid gaps in housing?

Planning a Home Purchase Around PCS Orders

When preparing for a home purchase during a Permanent Change of Station (PCS), military families should begin by carefully reviewing their PCS timeline. Key dates, such as when you receive your orders and the report date at your new duty station, are crucial for building a realistic plan.

Teaming up with a real estate agent who specializes in military relocations can make the process much easier. These professionals understand the unique challenges of PCS moves and can help you find homes that align with your needs and schedule. Additionally, it’s a good idea to look into temporary housing options, like on-base lodging or short-term rentals, in case there’s a gap between selling your current home and moving into the new one.

Make sure to leverage military benefits like VA loans, which can simplify the financing process and lower upfront costs. By planning ahead and tapping into these resources, you can make your transition to a new home as smooth as possible.

What are the benefits of VA loans, and how can first-time military homebuyers qualify?

VA loans offer a range of benefits that make homeownership more accessible for military families. For first-time homebuyers in the military, these loans stand out with no down payment, no private mortgage insurance (PMI), and competitive interest rates. Compared to conventional loans, which often come with higher upfront costs and monthly insurance fees, VA loans help reduce the financial barriers to owning a home. They also feature relaxed credit requirements and place limits on closing costs, making it easier for veterans and active-duty service members to achieve their homeownership dreams.

To qualify for a VA loan, service members must meet certain eligibility criteria. This typically includes completing at least 90 days of active-duty service during wartime or 181 days of service during peacetime. Veterans need to have received an honorable discharge and must secure a Certificate of Eligibility (COE) to verify their qualification. These provisions are tailored to simplify the homebuying process for those who have served in the military.

What should military families consider when choosing a neighborhood in Colorado Springs?

When choosing a neighborhood in Colorado Springs, military families often find it helpful to focus on areas near military installations such as Fort Carson and Peterson Space Force Base. Living close to these bases can significantly cut down on commute times, making daily routines much smoother.

Another key factor to consider is the quality of local schools, as well as the availability of nearby amenities and the overall feel of the community. Neighborhoods like Security-Widefield and Fountain Valley are popular among military families because they offer affordable housing and easy access to the bases. Finding a neighborhood with strong schools and family-friendly features can go a long way in creating a welcoming and fulfilling home life.

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