For military homebuyers, the process of purchasing a home comes with its own unique set of challenges. That’s where the professionals at AAFMAA Mortgage Services LLC (AMS) step in: “We are a group of professionals, many with military backgrounds, who help finance homes day in and day out,” says our Chief Marketing Officer, Rob Greenbaum. “While you may be an expert in special forces, aviation, or combat engineering, we are specialists in helping you get into a home you can afford and achieve sustainable homeownership.”
Depending on your career level and goals, homeownership may not be right for you at the current time, or it may be a smart way to redirect your rent money to build equity. “Your AMS Military Mortgage Advisor has worked with hundreds of borrowers and can run the numbers to help you make this important decision,” says Greenbaum.
Whether you’re an active-duty servicemember, a reservist, or a Veteran, navigating the homebuying process requires careful planning and consideration, and AMS is here to help.
Here are the top 5 things every military buyer should know before starting their house-hunting journey.
1. Know Your Credit Score (and Improve It if Necessary)
Your credit score is one of the most critical factors in determining your eligibility for a mortgage and the interest rate you will be offered. Military homebuyers should check their credit scores early in the process, ideally several months before they start house hunting. If your score is lower than you’d like, take steps to improve it by paying down debts, making on-time payments, and disputing any inaccuracies on your credit report.
Related: AMS Helps Veteran Finally Use Her Home Loan Entitlement
2. Understand your VA Home Loan Benefits and Eligibility
One of the biggest advantages of being a military buyer is the ability to access a VA Home Loan, which offers benefits like zero down payment and no private mortgage insurance (PMI) requirement for qualified borrowers. Keep in mind you may need to pay a VA funding fee though. Also, you must understand the eligibility criteria and ensure you have a valid Certificate of Eligibility (COE). “Knowing the specifics of VA Home Loan limits in your desired area and understanding how your entitlement works are also essential, and we can certainly help with that,” says Greenbaum.
3. Determine How Long You Plan to Stay in the Area
Before purchasing a home, military buyers should consider their expected time at the duty station. If you anticipate being reassigned within a few years, buying may not be the best financial decision, especially when factoring in closing costs and the potential for market fluctuations. Of course, mortgage rates are on the high side now, ending April 2025 at 6.71%, according to Optimal Blue. “But even if you purchase now, you’ll be able to refinance when rates do improve,” says Kevin Crooks, Business Development Manager for AMS.
Related: It’s PCS Time. Should We Live on Base, Rent or Buy?
4. Set a Realistic Budget and Factor in All Costs
It’s essential to establish a budget that aligns with your financial situation, including not just the mortgage payment but also property taxes, homeowners insurance, utilities, and maintenance costs. “Military buyers should also be aware of any allowances they receive, such as Basic Allowance for Housing (BAH), and how these can impact their budget,” explains Crooks.
Related: Moving Tips to Make Your Next PCS Easier
5. Choose a Military-Friendly RE Agent and Loan Officer
Working with real estate agents and lenders who understand the unique needs of military buyers can make a world of difference. Look for agents with Military Relocation Professional (MRP) certification, experience in helping military families, or ask an AMS Military Mortgage Advisor for referrals. Most AMS mortgage loan originators will have a network of people they regularly do business with and can give you a list of names and contact information.
Rely on the Experts
House hunting as a military buyer doesn’t have to be overwhelming. By understanding your credit score, maximizing your VA Home Loan benefits, calculating your expected stay, setting a budget, and working with a knowledgeable and experienced network of professionals, you can confidently find the right home and home loan for your needs and financial situation.
We’re Here to Help
Whether you’re thinking about buying, ready to start home shopping in earnest, or considering a refinance, an AMS Military Mortgage Advisor, a licensed mortgage loan originator, will be happy to provide you with an honest and fair comparison of your mortgage options, including a wide range of affordable mortgages designed to meet your needs.
Ensuring Armed Forces Mutual Members obtain the best mortgage possible is our mission. Get your free mortgage assessment today or give us a call at 844-422-3622!