It's been a longstanding tradition for veterans and active duty service members to buy their own homes, but military service can take a financial toll, making it difficult for service members to obtain a home loan. The good news is that there are programs that make it easier for those who serve to realize their dreams of home ownership.

VA Loans for Military Members

The VA loan program was created back in 1944, and since that time, the Department of Veterans Affairs has provided over 21 million loans for active-duty service members, their spouses, and veterans. Thanks to this loan program, home buying is more accessible for those who've put their lives on their line for the American Dream.

Some of the benefits of a VA loan, include:

• No down payment is required
• There is no mortgage insurance
• Limits on closing costs
• It's easier to qualify
• Interests rates are lower than average

In recent years, the number of VA loans issued have exploded, attracting many young families and military members who were not able to qualify under a conventional loan, which is harder to qualify for due to stricter credit requirements.

Usually for an active-duty member or a veteran to qualify, they must meet the following requirements: 1) served on active duty for 90 consecutive days during wartime, 2) served 181 consecutive days during peacetime, or served 6 or more years in the Reserves or National Guard.

Using the Monthly Housing Allowance for Qualifying

Did you know that active-duty members who receive a monthly housing allowance from the military are able to use that money to help them qualify for a home loan? Lenders are able to include the Basic Allowance for Housing (BAH) as income for the purpose of qualifying.

This can help active duty members go from being a renter to a homeowner, especially in expensive areas, such as San Diego, California. The BAH is based on a variety of factors, such as the service member's pay grade, the size of their family, and where they are stationed (some areas have a higher cost of living than others).

If you are a veteran or active-duty service member and you're interested in becoming a home owner, contact a real estate attorney for professional assistance!