Military Personnel and The Tax Credit

 

Although the home buyer tax credit has expired for buyers signing contracts after April 30, 2010. 

There is good news, however, for members of the military and certain other federal employees (Foreign Service and the intelligence community) serving outside the U.S.  They have an extra year to buy a principal residence in the U.S. and qualify for the credit. They must enter into a contract to buy the residence on or before April 30, 2011, and close by June 30, 2011.

This applies to any individual (and, if married, the spouse) who serves on qualified official extended duty outside the U.S. for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.

Also, the requirement that a buyer must repay the credit if they move out of their new home within three years has been waived if the move is due to government-ordered extended duty service.


 

Below is a list of Military Bases on Oahu and a short list of close neighborhoods. 


Camp Smith

Aiea – 0 miles
Waipahu -  4 miles
Pearl City – 6 miles
Waimalu – 1 miles
Millilani – 8 miles
Downtown Honolulu – 9 miles
Waikiki – 9 miles		 Wheeler and
Schofield Barracks

Haleiwa – 5 miles
Wahiawa – 1 mile
Millilani – 4 miles
Waialua – 5 miles
Whitmore Village – 2 miles
Waipio – 9 miles
Pearl Harbor

Pearl City – 1 mile
Waipahu – 2 miles
Aiea – 2.5 miles
Waipio – 2 miles


Hickam Airforce Base

Ewa Beach – 5 Miles
Halawa – 3 miles
Aiea – 3 miles
Waipahu - 5 miles
Honolulu - 9 miles

Barbers Point
Naval Air Station

Kapolei – 1 mile
Ko Olina – 1 mile
Ewa Beach – 2 miles
Waipahu – 6 miles
Makakilo – 2 miles
 Lualualei Naval Reservation

Makaha – 4 miles
Mail’i – 1 mile
Nanakuli – 2 miles
Ko olina – 8 miles
Salt Lake

Kaneohe Marine
Corp Air Station

Kaneohe – 3 miles
Kailua – 3 miles
Honolulu – 10 miles
Salt Lake		 Tripler

Halawa – 2 miles
Aiea – 3 miles
Pearl City 6 miles
Salt Lake - 2 Miles

Fort Shafter

Kalihi – 1 mile
Salt Lake - 1 mile		  

Public Schools Serving Military Bases Guide, From the Department of Education  

 


Buying vs. Renting: 2009 BAH Chart for Oahu


Below is a chart that shows how much housing allowance by rank you might be spending on rent that could be invested in a home.

  

RANK

WITH DEPENDANTS

WITHOUT DEPENDANTS

  

  

RANK

WITH DEPENDANTS

WITHOUT DEPENDANTS

E-1

$1,949

$1,555

  

W-4

$2,788

$2,306

E-2

$1,985

$1,555

  

W-5

$2,967

$2,434

E-3

$1,985

$1,555

  

O-1E

$2,431

$2,043

E-4

$1,985

$1,555

  

O-2E

$2,607

$2,144

E-5

$2,043

$1,757

  

O-3E

$2,816

$2,274

E-6

$2,247

$1,868

  

O-1

$2,069

$1,855

E-7

$2,403

$1,955

  

O-2

$2,269

$2,011

E-8

$2,545

$2,088

  

O-3

$2,627

$2,191

E-9

$2,745

$2,160

  

O-4

$3,043

$2,416

W-1

$2,276

$1,913

  

O-5

$3,334

$2,502

W-2

$2,461

$2,087

  

O-6

$3,361

$2,633

W-3

$2,633

$2,167

  

O-7+

$3,401

$2,686

  • E=       enlisted
  • W=       warrant officers
  • O-1E= officers with enlisted experience
  • O-1=   commissioned officers with no prior enlisted experience

 

VA Loans


If you are in the military, chances are you are eligible for a VA loan. Below are some advantages to VA Loans.

  • No down payment on sale prices up to $783,750.
  • Entire down payment and closing costs, etc. may be gifted or paid by the seller.
  • The current VA maximum loan limit is $1,500,000.
  • No mortgage insurance
  • No pre-payment penalty.
  • Loans are assumable
  • Financial counseling provided by VA.

ELIGIBLE BORROWERS: Includes veterans who served in the military for a minimum of 90 days during wartime or 181 days of continuous active duty during peacetime periods before 9/7/80; or 2 years between 9/8/80 and the present and received an honorable discharge. Reservists who have completed 6 years of duty may be eligible (temporary until 10/28/99). Note: certain service, discharge, and/or survivor benefits may affect eligibility.


ACTIVE DUTY SERVICE MEMBERS: Active duty personnel should obtain “Statement of Active Military Duty” (SAMD) from their Company Officer, reflecting current rank and length of service, as soon as possible. A sample form may be obtained from Wells Fargo Home Mortgage of HI (WFHM).

AUTHORIZATION TO RESIDE OFF-BASE – ACTIVE MILITARY ONLY
For active duty personnel currently living on base who will use housing allowance (BAH) as qualifying income, a completed
DD-1747 must be obtained from the Base Housing Office. Officers are exempt.