Along with other great programs, the Department of Defense is trying to help veterans obtain affordable housing. Through the Basic Allowance for Housing, or BAH, program, veterans are guided in the direction towards affordable and less burdensome housing expenses.
How does BAH work?
BAH provides service members on permanent duty within the U.S. with suitable housing compensation when government quarters are not available, according to the DoD. The reimbursed amount is based on housing costs in the local area in which the service member lives. People on active duty overseas are eligible for Overseas Housing Allowance, or OHA.
The stipend awarded is also determined when looking at the military memberâs duty location, pay grade and dependency status. Although the current BAH system allows for many service members to live without any out-of-pocket expenses, some costs may have to be covered. It depends on the housing market. Either way, a veteran and his or her family can save funds.
Sometimes BAH rates are subject to decrease. However, individual rate protection prevents the decrease of a BAH rate as long as the duty status of a service member remains the same. And when the new 2010 BAH rates go into effect, this protection assures that the service membersâ out-of-pocket costs may be less but not more.
BAH Rates
As stated before, BAH rates an increase and decrease, but individuals are protected from losing allowances.  People with dependents can get about $316 more than single persons. Persons without dependents receive whatâs called Partial BAH. Thereâs also BAH II and BAH Diff for persons paying child support.
Buying a Home with BAH
The VA mortgage plan is a program that makes it possible for veterans to buy their dream home. The U.S. Department of Veteran Affairs secures the VA loan. With the BAH program, a veteran could use his or her allowances to pay monthly mortgage which with the VA program is less stressful than conventional loan mortgages. One of the biggest features of the VA plan is no down payment. So, veterans and their families do not have to come up with a large lump sum of money towards the purchase of their home. Talk with a VA loan specialist today and see how BAH funds could help you to purchase a home!
