Getting Mortgage-Ready: A Budget Plan for Military Buyers
Updated: Oct 5
Getting ready for a mortgage takes a few months of planning, and the earlier you start before a PCS, the more options you'll have. As a military spouse for more than 30 years and an Arlington Associate Broker with 560+ transactions, I've seen a solid budget make the difference between a smooth closing and a stressful one. Here's the plan I share with buyers.
This article is general information, not tax, legal or financial advice.
1. Set your budget around BAH
BAH depends on your duty station, pay grade and whether you have dependents. 2026 rates rose an average of 4.2%. Look up your rate with the BAH calculator.
Aim for a total housing payment (mortgage, taxes, insurance and any HOA fee) at or below your BAH.
Leave room. Don't spend the full amount on the payment. You'll also have utilities and upkeep.
Think about the next move. BAH can change at your next station. If you might rent the home out, check what it would rent for.
2. Know how lenders look at your debt
Your debt-to-income ratio (DTI) is your monthly debt payments divided by your gross monthly income. VA's guideline is 41%. VA lenders also look at residual income, the money left after your housing and debt payments to cover family living costs. Paying off small loans, like furniture or personal loans, improves both. Ask your lender how they count BAH and other allowances.
3. Check your credit
Pull your free reports at AnnualCreditReport.com and fix any errors. Pay down card balances, and don't open new accounts or finance a car before closing. My 90-day credit plan has the steps.
4. Plan for the cash you'll need
Even with no down payment, you'll need cash for:
Earnest money deposit, which goes toward your costs at closing
Home inspection and any specialty inspections
Closing costs the seller doesn't cover. Your Loan Estimate shows them.
VA funding fee, unless you're exempt. It's usually 2.15% on a first use with less than 5% down, and it can be added to the loan.
Moving costs that aren't reimbursed, and move-in costs like deposits and supplies
A separate savings account with automatic transfers each payday makes this easier.
5. Keep an emergency fund
Aim for three to six months of expenses, separate from your home fund. PCS moves bring surprise costs, and the first year in a home always has a repair or two.
6. Organize your paperwork
Your COE (how to get it)
Recent LES statements and bank statements
W-2s and tax returns for two years
Your orders. Guard and Reserve members may need a points statement, and transitioning members a DD214.
7. Stick to the plan
Once you know your number, don't stretch it. Count utilities, maintenance and HOA fees, and leave room for savings. A home you can afford comfortably is easier to keep, rent or sell when orders come.
In Northern Virginia
Northern Virginia's median sold price was $765,000 in August 2026, according to NVAR. Property taxes, HOA or condo fees and commuting costs vary a lot between Arlington, Fairfax, Prince William and Loudoun. I'll help you compare total monthly costs, not just prices. My Northern Virginia PCS guide is a good starting point.
Last reviewed: October 2026
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