Veterans Tip of the Week
Not All BAH is Created Equal
Question: Why is the BAH associated with my Post 9/11 GI Bill not
considered allowable income for qualification on my VA Home Loan, but
BAH on active duty is allowed?
First, use of educational benefits of any kind for income
qualification on a VA loan is expressly prohibited in the VA lenders
Under the "Other Income" section 2.r. of Chapter 4: Do not include
temporary income items such as VA educational allowances and
unemployment compensation in effective income.
Second, in order to be considered allowable income, it needs to be
stable and reliable. The Post 9/11 GI Bill, a great benefit you should
use if eligible (
is a defined 36 month benefit. The BAH paid as part of that program is
tied directly to enrollment in classes. rate of pursuit of your degree
and when classes are in session. For example, even though you may be a
full time, in residence student, unless you are enrolled in a full time
credit load over winter break and summer break, i.e., between semesters,
you will not receive BAH for those days not enrolled. BAH is paid from
the published start and stop dates of the school semester.
Note: Post 9/11 GI Bill BAH is not tracked to your housing expenses.
You can use that money for whatever purpose you choose. It is just not
considered allowable income for a loan. Use it to pay down debt or save
toward that future home purchase.
Active Duty BAH or Basic Allowance for Housing, on the other hand, is
supplemental income paid to active duty members who are living on the
economy in off-base, privately purchased or rented property. It is
considered stable and reliable because it it part of your overall
As always, please feel free to PM me if you have questions regarding
your VA Benefits. If I don't know the answer, we will find it together.
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