MilitaryHomeSearch.com - Frequently Asked Questions
Information About The BAH Calculator
What Is The BAH Calculator?
A Basic Allowance for Housing (BAH) calculator is used to determine what the allowance is for an individual based on location, pay grade, and whether or not they have dependents. This tool can help you budget how much home you can afford to buy based on your BAH income alone. This is different from our Mortgage Calculator because the BAH calculates roughly how much you can afford to spend each month, whereas the Mortgage Calculator gives you a rough estimate of how much the mortgage payment would be for the property listing you are viewing.
Our BAH Calculator provides you with information about your monthly payment, expected BAH contribution, your total VA Loan amount, the purchase price of the home, and your expected down payment.
How Is My BAH Calculated?
Your BAH is a predetermined rate that’s determined by your location, pay grade, and if you’re with or without dependents. The BAH factors in rental data from your area to determine an amount that would cover the average price to rent a home.
Can I Use My BAH To Buy A Home?
Absolutely. The BAH is a non-taxable payment that’s given to eligible military service members when they can’t get government housing. This guaranteed income can help you reduce your debt-to-income ratio and help you cover a significant amount, if not all, of your monthly mortgage payment.
How To Use Our Advanced BAH Calculator
This quick guide can help you use our one-of-a-kind BAH calculator, something we’re proud to offer exclusively to our registered members who are looking to buy a home. This tool is for service members and veterans to determine their BAH amount and factor it into their home buying decisions.
Your Monthly Payment is determined by the overall mortgage payment for the home. If this price is higher than your BAH amount, it means that it costs more than your BAH income alone, and you’ll need to pay in addition to your BAH income to afford your monthly mortgage payment.
The VA Loan Amount represents the total amount of money you will need to borrow through a VA Loan. This number is often higher than the purchase price because there are VA Loan fees that are integrated into the overall loan amount.
The Purchase Price is the listing price of the home.
For veterans, the Down Payment section will always be set to $0 because one of the great benefits of using a VA Loan is that it waives the need for a down payment. That being said, you still can supply a down payment if you wish, it would just reduce your monthly payment each month. This area is editable, so feel free to plug in how much of a down payment you could contribute and watch as the Monthly Payment decreases above!
You can also modify your Interest Rate and Term to better suit your needs, which will in-turn adjust your monthly mortgage payment.