We are military, so when we get our mortgage loan, is BAH included as part of our gross income?

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Just wondering if our approval amount will based on basic pay, or based on our total pay including BAH.

  1. Reply
    February 7, 2011 at 8:40 am

    I don’t know that much about BAH, but if this is a continuing pay you can use for your housing them I’m sure they will count it. They may not count it if its going to go away pretty soon or can’t be used for this particular expense but otherwise they will certainly give you credit for this money as it is money you can use to pay this and therefore increases the mortgage you could afford.

  2. Reply
    February 7, 2011 at 9:22 am

    Probably not with BAH- being as how you won’t be using it as you’ll own your own home and not need BAH.

  3. Reply
    February 7, 2011 at 9:44 am

    The mortgage company “should” consider BAH as part of your gross income (even though it is non taxable). The reason being is the military is paying you this amount is because you are not living in military housing and must pay your own rent/mortgage.

    Keep in mind that when you PCS your BAH amount is based of your new location, which may be higher or lower than what you currently get. If you cannot sell your home before PCS’ing and decide to move into military housing at your new duty location (so you only have one rent/mortgage payment), you will lose your BAH (because housing is provided for you).

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