VA Home Loan Tax Advantages
Some of the greatest benefits of the VA home loan are the tax advantages.
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What is BAH
According to the Department of Defense,
Basic Allowance for Housing (BAH) is an allowance to offset the cost of housing when you do not receive government-provided housing. BAH applies to active duty military members. BAH rate varies depending on:
• Pay Grade
• Number of Dependent Claims
BAH is tax-free income that can be a powerful tool in your home buying experience. When you buy a home, portions of the monthly payment are tax-deductible. Every month when you make your mortgage payment, you will make a payment towards mortgage interest & property taxes. Both of these are tax deductible against your yearly income tax.
Therefore, you can use tax-free money to buy a house and use the write-offs to lower the amount of taxable income you claim.
Rather than waiting until you are no longer receiving tax-free income, buying your home while on active duty could help you save thousands of dollars.
Tax Deduction Benefits
There are a few key tax deduction benefits of owning a house that make home ownership a great financial investment. As a homeowner, you can deduct mortgage interest and property tax payments along with certain other expenses from your federal income tax when itemizing deductions. Of these, the most substantial tax deduction available for homeowners is through mortgage interest. Deducting your interest can make owning a home an incredibly profitable investment when it comes to filing your taxes.TAKE THE NEXT STEP
The most amazing experience from attending their seminar all the way to purchasing a home, they have been professional and kind in all aspects.
I thought buying a home was gong to be so much stress that I thought I was going to have to constantly go to their office but that was not the case. They were immediately available for any questions or concerns.
-Amy S, Navy, CAGET STARTED NOW!
With no down payment, no PMI, and tax-free income through BAH, active duty members are perfect candidates to take advantage of the VA home loan benefit. With the benefits associated with the VA Loan, you can get into your dream home sooner.