Glossary & Military Housing Dictionary

Tax-free monthly housing allowance based on duty location, rank, and dependent status.

Why this matters: BAH usually anchors your entire housing budget — rent, mortgage, or on-base housing all key off of it.

Military example: An E-5 with dependents stationed at Fort Liberty receives a set BAH amount that they can apply to rent or a mortgage off base.

Monthly food allowance, separate from BAH. Enlisted and officers receive different fixed amounts.

Why this matters: BAS is part of your tax-free pay and helps shape your true monthly income for housing decisions.

Military example: When estimating affordability, BAS is added to base pay and BAH to show your total take-home cash flow.

Extra pay for high-cost duty locations (CONUS COLA and OCONUS COLA) to offset non-housing living costs.

Why this matters: COLA can shift quickly with currency or location changes, so don't lean on it for a mortgage payment.

Military example: OCONUS COLA in Tokyo helps cover groceries and goods, separate from OHA for rent.

Umbrella term covering on-base, privatized, and unaccompanied (barracks/dorm) housing operated for the military.

Why this matters: Eligibility depends on rank, dependents, and assignment — the housing office confirms what you qualify for.

Military example: Single junior enlisted are usually required to live in government housing until a certain rank.

Pay scale used for most federal civilian (GS) employees, combining base pay with locality pay adjustments.

Why this matters: Dual-income military households often include a GS spouse — GS pay matters for affordability and PCS continuity.

Military example: A GS-11 spouse keeps federal employment portable across PCS moves through telework or transfer.

The installation office that handles on-base housing, off-base rentals, and housing-related issues for service members.

Why this matters: Many bases require service members to check in with the housing office before signing an off-base lease.

Military example: A new arrival visits the housing office to get the approved off-base rental list.

Geographic adjustment added to federal civilian base pay to reflect local cost of living.

Why this matters: Locality pay can shift a household's affordability meaningfully when PCSing between regions.

Military example: A GS employee moving from a Rest-of-US locality to San Francisco sees a large locality bump.

Reimbursement-based housing allowance for service members stationed outside the U.S. who rent on the local economy.

Why this matters: Unlike BAH, OHA caps what it reimburses — you can't pocket the difference if your rent is below the max.

Military example: An officer stationed in Germany uses OHA to cover rent up to the allowance cap for their rank and dependents.

Government-owned or privatized housing on a military installation. Usually takes all of your BAH in exchange for housing and most utilities.

Why this matters: It removes housing risk but also removes the chance to build equity — a common trade-off during a PCS decision.

Military example: A family moving on short notice may choose on-base housing for the first year while learning the local market.

Any housing decision made because of a Permanent Change of Station — including buy, rent, on-base, or temporary lodging.

Why this matters: PCS timing drives almost every housing trade-off: equity, lease terms, and risk all hinge on how long you'll be there.

Military example: A 2-year assignment usually favors renting; a 4+ year assignment may justify buying.

Housing on or near base owned and operated by a private company under a long-term contract with the military.

Why this matters: Quality, responsiveness, and policies vary by installation — research the specific community before committing.

Military example: Many bases now use privatized housing managed by companies like Balfour Beatty or Lendlease.

Extra monthly pay for service members in qualifying special-duty assignments (e.g., recruiter, drill instructor, certain technical roles).

Why this matters: Special duty pay can boost monthly income — but it typically ends with the assignment, so it shouldn't anchor a long-term mortgage.

Military example: An NCO on recruiting duty receives SDAP for the assignment length but loses it at the next PCS.

Estimated utility cost included as part of OHA or factored into on-base housing — covers basics like electricity, gas, and water.

Why this matters: Utilities can swing a housing decision by hundreds of dollars per month, especially OCONUS.

Military example: OHA includes a utility allowance based on the host country's typical usage and rates.

Queue used by on-base or privatized housing communities when demand exceeds available units.

Why this matters: Long waiting lists at popular bases often push families into the local rental or for-sale market.

Military example: A family arriving at a high-demand base may face a 6–12 month wait for a 4-bedroom unit.

The typical length and rhythm of duty assignments for your career field or branch.

Why this matters: Your community's assignment cycle (2 vs. 3 vs. 4 years) is one of the strongest signals for buy vs. rent.

Military example: A career field with consistent 3-year tours may favor renting unless rapid appreciation is expected.

One-time payment to partially offset the cost of moving household goods and setting up a new home during a PCS.

Why this matters: DLA is helpful but rarely covers the full real cost of a PCS, so plan a cash buffer.

Military example: An E-6 with dependents receives DLA after PCSing to a new base.

Pre-negotiated next assignment that takes effect after a short or hardship tour.

Why this matters: A confirmed follow-on can change everything: it locks in your next location and timeline.

Military example: A service member accepts a Korea tour with a follow-on to Hawaii, shaping their housing plan for the next 4 years.

Personal property moved at government expense during a PCS — furniture, appliances, clothing, and most household items.

Why this matters: Weight allowances cap what the government will move; going over costs you out of pocket.

Military example: An E-7 with dependents has a higher HHG weight allowance than a single E-3.

A long-term reassignment from one duty station to another, typically every 2–4 years.

Why this matters: PCS cycles set the timeline for every housing decision — and time at station drives rent vs. buy math.

Military example: A service member with PCS orders from Norfolk to San Diego must decide whether to sell, rent out, or keep their current home.

Short-term assignment away from your permanent duty station, usually weeks or months.

Why this matters: TDY doesn't change your home — but long or back-to-back TDYs can stress finances and rental management.

Military example: A pilot on a 6-month TDY still pays the mortgage on their home of record.

OCONUS version of TLE — covers temporary lodging and meals overseas before and after PCS arrival/departure.

Why this matters: Overseas, TLA windows can be longer but also more rigid — coordinate with the housing office early.

Military example: A family arriving in Italy uses TLA while waiting for an approved off-base rental.

Reimbursement for short-term lodging and meals during a CONUS PCS, usually up to 14 days.

Why this matters: TLE is the cushion that buys time to find a long-term home without rushing into a bad lease or purchase.

Military example: A family stays in a hotel for 10 days while searching for a rental near their new duty station, with TLE covering most of the cost.

Form (typically DD 1351-2) submitted after a PCS or TDY to claim reimbursement for travel expenses.

Why this matters: Late or incomplete vouchers delay thousands of dollars in reimbursements — file promptly.

Military example: A service member submits a travel voucher within 5 days of arriving at their new base.

An overseas assignment where dependents are not authorized to relocate with the service member.

Why this matters: Unaccompanied tours often mean maintaining two households — major impact on a buy vs. rent decision.

Military example: A 12-month Korea tour leaves the family in the U.S. and may favor keeping the existing home.

A lender-required professional estimate of the home's market value, used to confirm the loan amount is supported.

Why this matters: A low appraisal can force the buyer to bring extra cash, renegotiate, or cancel under a financing contingency.

Military example: A VA appraisal comes in $10,000 below contract; the seller agrees to drop the price.

The final step of the home purchase where documents are signed, funds are exchanged, and ownership transfers.

Why this matters: Many PCS timelines hinge on hitting the closing date — delays can cost lodging, storage, and reimbursement issues.

Military example: A service member coordinates closing with their PCS travel window so they can move in immediately after arriving.

A condition in the contract that lets the buyer or seller walk away without penalty if certain criteria aren't met.

Why this matters: Financing, appraisal, and inspection contingencies are the buyer's main protections.

Military example: A VA financing contingency lets the buyer recover their earnest money if loan approval falls through.

A seller's response that changes one or more terms of the original offer.

Why this matters: Each counteroffer resets negotiations — read every line carefully, especially closing date and concessions.

Military example: The seller counters at $5,000 above offer price but adds $3,000 in seller-paid closing costs.

The legal document that transfers ownership of the property from seller to buyer.

Why this matters: The deed is recorded at closing and is the official proof you own the home.

Military example: After closing, the new deed is recorded with the county and mailed to the buyer.

Cash you put toward the home at closing. VA loans allow $0 down; conventional loans typically require 3%–20%+.

Why this matters: Larger down payments lower the loan, monthly payment, and total interest — but reduce liquidity for PCS surprises.

Military example: A buyer puts 10% down on a $400,000 home, leaving a $360,000 loan and preserving cash reserves.

A deposit submitted with your offer to show the seller you're serious. Applied to your down payment or closing costs at closing.

Why this matters: If you back out of a contract without a valid contingency, you may lose this deposit.

Military example: A service member purchasing a home before a PCS includes a financing contingency to protect their earnest money.

A neutral third party that holds funds and documents during the transaction. After closing, your lender uses an escrow account for taxes and insurance.

Why this matters: Escrow protects both buyer and seller and is also how property tax and insurance get paid on time after closing.

Military example: Earnest money sits in escrow until closing, then is applied to the buyer's funds due.

An optional service contract that covers repair or replacement of certain home systems and appliances for a fixed term.

Why this matters: Useful for first-year ownership peace of mind — but coverage limits and exclusions matter.

Military example: A seller offers a 1-year home warranty as part of negotiations.

An independent professional review of the home's condition — structure, roof, HVAC, plumbing, electrical, and more.

Why this matters: An inspection often reveals issues that justify repair credits, price reductions, or walking away.

Military example: A buyer asks for a $4,000 credit after the inspection finds a failing HVAC system.

A written proposal to buy a home at a specific price and on specific terms.

Why this matters: Strong offers include price, financing terms, contingencies, and timeline — not just a number.

Military example: A buyer offers list price with a VA financing contingency and a 30-day close.

A lender's conditional commitment to lend you a specific amount based on verified income, credit, and assets.

Why this matters: Sellers almost always require pre-approval before accepting an offer — pre-qualification alone is not enough.

Military example: A service member with PCS orders gets pre-approved before flying out for a house-hunting trip.

A quick lender estimate of how much you might borrow, based on self-reported information.

Why this matters: Pre-qualification is a useful starting point but carries no weight with sellers.

Military example: A first-time buyer uses pre-qualification to set a rough budget before talking to a real agent.

Money the seller credits the buyer at closing toward specific costs like closing fees, points, or prepaids.

Why this matters: VA loans allow generous concessions, which can dramatically reduce cash to close.

Military example: A buyer accepts list price in exchange for $7,500 in seller concessions, lowering out-of-pocket cash.

All costs deducted from sale price at exit — commissions, closing costs, concessions, repairs, and prorations.

Why this matters: Selling costs typically run 7%–10% of sale price and are the biggest reason PCS sellers come out behind.

Military example: A $450,000 sale with $35,000 in selling costs yields $415,000 before mortgage payoff.

Legal ownership of the property. Title work confirms the seller can transfer ownership free of unknown claims.

Why this matters: Hidden liens or ownership disputes can derail a closing — title insurance protects against them.

Military example: A title search uncovers an old contractor lien that must be cleared before the sale can close.

The combined cost of buying and selling a home — closing costs on entry plus commissions and closing costs on exit.

Why this matters: Transaction costs are often 8–10% of home value combined, and they drive the break-even timeline.

Military example: On a $400,000 home, transaction costs may total $30,000–$40,000 across the full ownership cycle.

The schedule that shows how each monthly payment is split between principal and interest over the loan term.

Why this matters: Reviewing the amortization schedule shows how slowly equity builds in the early years.

Military example: A 30-year amortization schedule shows minimal principal paydown in years 1–5.

Growth in a home's market value over time. U.S. averages historically run ~3%–5% per year but vary by market.

Why this matters: Appreciation drives most equity growth in early years — but it isn't guaranteed and can go negative.

Military example: A $400,000 home appreciating 3% per year is worth roughly $450,000 in 4 years.

The interest rate plus most lender fees, expressed as a yearly rate. Useful for comparing loan offers.

Why this matters: Two loans with the same rate can have very different APRs once fees are included.

Military example: A loan with a low rate but high origination fees may have a higher APR than expected.

A mortgage whose interest rate adjusts on a set schedule after an initial fixed period (e.g., 5/1, 7/1).

Why this matters: ARMs can save money during the fixed period but carry risk if you're still holding the loan when it adjusts.

Military example: A 5/1 ARM may make sense if you're confident you'll PCS and sell within 5 years.

A number (typically 300–850) that summarizes your credit history. Higher scores generally mean better rates.

Why this matters: Improving your score even 20–40 points before applying can lower your rate noticeably.

Military example: A buyer moves from a 690 to a 740 score and qualifies for a meaningfully lower rate.

Monthly debt payments divided by gross monthly income. Lenders use it to decide how much you can borrow.

Why this matters: Most lenders prefer DTI under ~43%, though VA loans use residual income alongside DTI.

Military example: Adding a car payment can push DTI over the limit and shrink the loan amount you qualify for.

The portion of the home you actually own — current home value minus what you still owe on the mortgage.

Why this matters: Equity is how housing builds wealth, but it's illiquid: you can't spend it without a sale, HELOC, or cash-out refi.

Military example: A $450,000 home with a $300,000 mortgage balance has $150,000 of equity.

An account managed by the lender that collects monthly payments for taxes and insurance and pays them when due.

Why this matters: Escrow shortages after a tax increase can raise your monthly payment by hundreds of dollars overnight.

Military example: A new property tax assessment increases your escrow payment by $150/month at the next annual review.

MilHousing Playbook's current estimate of your equity using inputs like home value, mortgage balance, and paydown to date.

Why this matters: Estimates depend on the home-value assumption — actual equity is only confirmed at sale.

Military example: Estimated equity of $90,000 today may differ from the appraised number when you list.

A mortgage with the same interest rate for the entire loan term, typically 15 or 30 years.

Why this matters: Predictable payments are especially valuable for military families managing PCS uncertainty.

Military example: A 30-year fixed VA loan locks in payment stability for the life of the loan.

Same as equity — your ownership stake in the home (home value minus loan balance).

Why this matters: Home equity is the foundation of long-term housing wealth, but a PCS sale can wipe out years of it through transaction costs.

Military example: After 3 years, an owner has built ~$25,000 of home equity through paydown and appreciation.

The cost of borrowing money, paid to the lender. In early years of a mortgage, most of your payment is interest.

Why this matters: Even a 0.5% rate change meaningfully affects monthly payment and total cost over a 30-year loan.

Military example: A higher interest rate means a smaller portion of each payment goes to principal in the early years.

Current unpaid amount on a mortgage or HELOC.

Why this matters: Loan balance is the number subtracted from home value to calculate equity.

Military example: After 5 years of payments, the loan balance has dropped from $300,000 to ~$272,000.

How long you have to repay the loan, most commonly 15 or 30 years.

Why this matters: Longer terms = lower payment, more total interest. Shorter terms = higher payment, faster equity.

Military example: A 15-year loan can save tens of thousands in interest but raises the monthly payment significantly.

How much you still owe on your mortgage right now.

Why this matters: Mortgage balance drives equity, LTV, and net proceeds at sale.

Military example: A $300,000 mortgage balance against a $450,000 home value = $150,000 equity.

Extra insurance required on conventional loans with less than 20% down. VA loans do not require it.

Why this matters: PMI can add $100–$300+ per month, materially changing affordability.

Military example: A buyer puts 10% down on a conventional loan and pays PMI until they reach 20% equity.

Principal, Interest, Taxes, and Insurance — the four parts of a typical monthly mortgage payment.

Why this matters: PITI (plus HOA, if any) is the real number to compare against BAH and rent, not just principal and interest.

Military example: A mortgage of $1,800 P&I may be $2,400 PITI once taxes and insurance are added.

The amount you actually borrowed. Each monthly payment reduces principal a little more over time.

Why this matters: Equity grows largely through principal paydown plus appreciation.

Military example: On a $300,000 loan, the first payment may apply only ~$300 to principal and the rest to interest.

The portion of each mortgage payment that reduces what you owe, slowly building equity.

Why this matters: Paydown is small in early years — most equity comes from appreciation until later in the loan.

Military example: In year 1 of a 30-year loan, only ~$5,000 of $24,000 in payments may go to principal.

Forward-looking equity estimate at a future date based on assumed appreciation and amortization.

Why this matters: Projected equity helps compare buy vs. rent vs. convert scenarios over the same PCS window.

Military example: Projected equity in 4 years is $65,000 assuming 3% annual appreciation.

Cash or liquid assets the lender wants to see after closing — usually a few months of housing payments.

Why this matters: Strong reserves can improve your loan approval and protect you during PCS or deployment surprises.

Military example: A lender requires 2 months of PITI in reserves for a jumbo loan.

Sum of equity across all properties you own — primary home plus any rentals or second homes.

Why this matters: Total equity gives a portfolio view of how much wealth is locked in real estate vs. liquid assets.

Military example: A military landlord has $80,000 equity in a rental and $40,000 in their current home = $120,000 total equity.

The lender's process of verifying everything in your loan file and deciding whether (and on what terms) to approve.

Why this matters: Underwriting is where loans actually live or die — surprises here cause most delayed closings.

Military example: Underwriting requests an updated LES and a letter of explanation for a large deposit.

A loan that can be transferred to a qualified buyer, who takes over the existing terms (including interest rate).

Why this matters: In a high-rate market, an assumable VA loan can be a powerful selling point and add real value.

Military example: A seller with a 3.0% VA loan attracts strong offers from qualified buyers wanting to assume the rate.

VA-issued document proving you qualify for a VA loan and showing your remaining entitlement.

Why this matters: Lenders require the COE before issuing a VA pre-approval.

Military example: A first-time buyer pulls their COE through their lender or eBenefits.

Short for Certificate of Eligibility — the document proving VA loan eligibility.

Why this matters: Quick reference for the same document; required for VA loan approval.

Military example: Your lender uploads your COE into the loan file.

Waiver of the VA funding fee for certain veterans, including many with a service-connected disability rating.

Why this matters: Exemption can save thousands of dollars at closing or in financed loan amount.

Military example: A veteran with a qualifying disability rating closes on a VA loan with no funding fee.

VA loans must be used for a primary residence. You generally must occupy within 60 days of closing, with PCS/deployment exceptions.

Why this matters: Misusing a VA loan for a non-primary residence can create serious legal and entitlement problems.

Military example: A service member closes on a VA loan and moves in within the required window after a PCS.

Money left over after major monthly obligations are paid. The VA uses minimum residual income requirements alongside DTI.

Why this matters: Residual income is one reason VA loans can approve buyers with higher DTI than conventional loans.

Military example: A family with steady residual income above the VA minimum may qualify even with a DTI above typical conventional limits.

Process of getting your VA entitlement back after selling the home or paying off the prior VA loan.

Why this matters: Without restoration, your next VA purchase may require a down payment.

Military example: After selling a VA-financed home, a service member files for restoration before their next purchase.

Using your VA loan benefit a second or later time. The funding fee is typically higher than first use.

Why this matters: Plan ahead — repeat use changes both the funding fee and entitlement math.

Military example: An officer uses a VA loan at their second duty station after selling their first VA-financed home.

The dollar amount the VA guarantees to your lender. Full entitlement generally means no loan limit on zero-down purchases.

Why this matters: Partial entitlement (e.g., from a prior loan still active) can require a down payment or limit loan size.

Military example: A service member who still has a previous VA loan active may have only partial entitlement for the next purchase.

A one-time fee (about 1.25%–3.3% of the loan amount) that helps fund the VA loan program. Often financed into the loan.

Why this matters: First-use vs. subsequent-use fees differ; the fee meaningfully changes total loan cost.

Military example: A first-time VA loan user pays a lower funding fee than someone using the benefit for the third time.

A no-down-payment, no-PMI mortgage backed by the VA for eligible service members, veterans, and surviving spouses.

Why this matters: For most military buyers, the VA loan is the most powerful tool available — but it comes with rules like occupancy and funding fees.

Military example: A service member buys a primary home with $0 down using their VA loan benefit.

Net operating income divided by property value. A quick yardstick for comparing rental investments.

Why this matters: Cap rate helps you sanity-check whether a rental is competitive in its market.

Military example: A $300,000 property with $18,000 NOI has a 6% cap rate.

Big-ticket replacements like roofs, HVAC, water heaters, or appliances.

Why this matters: CapEx items can cost $5,000–$20,000+ and should be budgeted long before they fail.

Military example: An owner reserves $100/month per rental specifically for CapEx.

Rent collected minus all expenses (mortgage, taxes, insurance, maintenance, management, vacancy).

Why this matters: Positive cash flow protects you during vacancies and PCS surprises; negative cash flow turns the property into a monthly bill.

Military example: A converted PCS rental shows $150/month positive cash flow after reserves.

Annual pre-tax cash flow divided by the cash you actually invested. Measures return on your own money.

Why this matters: Cash-on-cash is the closest single number to the actual return you experience as an investor.

Military example: $3,000 annual cash flow on $30,000 invested = 10% cash-on-cash return.

Total rent collected before any expenses are deducted.

Why this matters: Useful for top-line comparisons but never the number to base decisions on alone.

Military example: A duplex with $2,000 + $1,800 in units has $3,800/month gross rent.

Total accumulated equity, paydown, appreciation, and net cash flow over a long time horizon.

Why this matters: Some strategies look weak month-to-month but win on long-term wealth, especially with rental conversion.

Military example: Holding a rental through two PCS cycles can outperform selling once long-term wealth is measured.

Money set aside for ongoing repairs. A common rule of thumb is ~1% of home value per year.

Why this matters: Skipping a maintenance reserve hides true cost of ownership and turns small issues into emergencies.

Military example: A $400,000 rental should reserve roughly $4,000/year for maintenance.

Cash flow expressed as a monthly number — rent minus all monthly expenses including mortgage and reserves.

Why this matters: Monthly cash flow is the number that determines whether a rental supports your life or drains it each month.

Military example: A converted PCS rental nets $175/month after PITI, management, vacancy, and maintenance reserves.

Rent left over after operating expenses but before mortgage payments.

Why this matters: Bridges gross rent and true cash flow — closer to reality than gross alone.

Military example: $3,800 gross minus $1,000 in operating expenses = $2,800 net rent.

Rental income minus operating expenses (not including mortgage). Used to value rental properties.

Why this matters: NOI is the cleanest way to compare two properties side by side independent of financing.

Military example: NOI of $20,000/year on a $400,000 property = 5% cap rate.

Professional manager hired to lease, collect rent, and coordinate maintenance, usually for 8%–10% of monthly rent.

Why this matters: Remote military landlords almost always need a property manager — factor the cost into every rental projection.

Military example: An owner stationed 1,500 miles away pays 10% to a property manager to handle tenant calls.

Monthly fee charged by a property manager, typically 8%–10% of collected rent, plus leasing fees.

Why this matters: Remote military landlords almost always need a manager — this fee must be modeled accurately.

Military example: On $2,200/month rent, a 10% fee is $220/month plus any tenant-placement fees.

Cash flow specific to a rental property — rent collected minus all rental expenses and the mortgage.

Why this matters: Rental cash flow is the right number to evaluate keep-as-rental vs. sell decisions during PCS.

Military example: A duplex generates $400/month rental cash flow after all expenses.

Keeping your current home as a rental after PCS instead of selling.

Why this matters: Conversion can build long-term wealth but adds remote-landlord risk and ongoing reserves.

Military example: After PCS to a new base, a family converts their previous home to a rental managed by a property manager.

Annual rent divided by property value, often shown as a percentage.

Why this matters: A quick screen for whether a property is even worth analyzing further.

Military example: $24,000 annual rent on a $400,000 property = 6% gross rental yield.

Time the property sits unrented. Plan for 5%–8% even in strong markets.

Why this matters: Vacancy is the silent killer of rental math — always reserve for it.

Military example: A 30-day vacancy between tenants can wipe out half a year of profit.

Percentage of the year you assume the property is empty between tenants. Common defaults: 5%–8%.

Why this matters: Skipping a vacancy reserve makes rental math look better than it really is.

Military example: An 8% vacancy rate on $24,000 annual rent reserves about $1,920/year.

How long ownership needs to last before appreciation and paydown cover the combined buy and sell costs.

Why this matters: If a PCS hits before break-even, selling typically loses money — a key MilHousing Playbook input.

Military example: A 4-year break-even period on a home bought 18 months before PCS likely means selling at a loss.

A licensed agent who represents the buyer in a transaction.

Why this matters: On the sell side, you typically still pay the buyer's agent's commission out of proceeds (depending on local rules).

Military example: Net proceeds shrink by the buyer's agent commission as well as the listing agent's.

Fees due at closing — for sellers, this typically includes title, transfer taxes, prorated property tax, and other charges.

Why this matters: Seller closing costs are separate from commissions and routinely run several thousand dollars.

Military example: Closing costs on a $400,000 sale may total $4,000–$8,000 before commission.

How long a property has been actively listed.

Why this matters: Longer DOM often signals price or condition issues and can weaken your negotiating position.

Military example: A home sitting 60+ DOM may need a price drop to refresh buyer interest.

The real estate agent who represents the seller and markets the home.

Why this matters: Good listing agents price aggressively and accurately for your timeline — critical for PCS sellers.

Military example: A listing agent recommends a price 1–2% below comparable sales to attract fast offers before PCS.

The exact amount needed to fully satisfy your mortgage at closing, including interest through the payoff date.

Why this matters: Payoff is often higher than your current balance because of accrued interest.

Military example: A balance of $298,000 may have a payoff quote of $298,800 by the closing date.

What you actually walk away with after sale price minus mortgage payoff, commissions, closing costs, and concessions.

Why this matters: Net proceeds — not sale price — drive whether selling makes sense vs. renting out or holding.

Military example: $450,000 sale price minus $300,000 payoff minus $30,000 in fees = $120,000 net.

Sales commission paid out of the sale, traditionally 5%–6% split between agents. Negotiable in many markets.

Why this matters: Commissions are typically the biggest single sale expense — small percentage changes mean thousands of dollars.

Military example: On a $400,000 sale, a 5% commission is $20,000.

Credits the seller gives the buyer at closing for specific costs.

Why this matters: Concessions can close a deal but reduce net proceeds — track them carefully.

Military example: A seller offers $5,000 in concessions to cover the buyer's rate buydown.

Closing costs of the refinance divided by monthly savings = months to recover.

Why this matters: If you PCS before the break-even point, the refinance loses money.

Military example: $4,800 in closing costs and $200/month savings = 24 months to break even.

Refinancing for more than you owe and taking the difference in cash — increases your loan balance.

Why this matters: Cash-out is borrowed money, not free equity. Use carefully and consider PCS timing.

Military example: A homeowner with $200,000 equity refinances and takes out $50,000 in cash.

Total of all loans (1st mortgage + HELOC/2nd) divided by home value.

Why this matters: CLTV limits how much you can borrow through cash-out or HELOC strategies.

Military example: A lender caps CLTV at 85%, limiting how much a HELOC can add on top of the first mortgage.

Total of all loans on the property (1st mortgage + HELOC/2nd) divided by home value.

Why this matters: CLTV caps how much equity you can pull through cash-out refi or HELOC strategies.

Military example: An 85% CLTV cap on a $400,000 home allows $340,000 in combined loans.

The phase of a HELOC during which you can borrow and typically pay interest only.

Why this matters: Low payments during the draw period can mask the much higher payment ahead.

Military example: A 10-year draw period gives flexibility but ends with full repayment kicking in.

A revolving credit line secured by your home's equity, usually with a variable rate.

Why this matters: Flexible but variable — HELOC payments can rise sharply if rates climb.

Military example: A homeowner opens a HELOC for emergency reserves before a deployment.

Loan amount divided by home value. A core lender risk metric.

Why this matters: Lower LTV usually means better rates and fewer restrictions; higher LTV means more risk and cost.

Military example: Buying with $0 down means starting at 100% LTV on a VA loan.

A refinance that changes the interest rate, the loan term, or both — without taking cash out.

Why this matters: Most common refinance type when rates drop or you want to shorten the term.

Military example: A buyer refinances from a 30-year at 7% into a 30-year at 5.5%.

Replacing your current mortgage with a new one — to lower the rate, change the term, or take cash out.

Why this matters: Refinances have real closing costs that must be recovered before a PCS sale.

Military example: A homeowner refinances at a lower rate, saving $250/month with a 22-month break-even.

Replacing your existing mortgage with a new one — usually to lower the rate, change the term, or pull equity.

Why this matters: Refis are not free — closing costs must be recovered through monthly savings before you PCS.

Military example: A homeowner refinances from 7% to 5.5% to lower their monthly payment.

The phase of a HELOC after the draw period when principal and interest are repaid on a schedule.

Why this matters: Repayment phase payments are often 2–3x the draw-period payment.

Military example: A $50,000 HELOC balance can jump from a $200 interest-only payment to a $500+ full payment.

Process where a qualified buyer takes over an existing VA loan, keeping the original rate and terms.

Why this matters: Assuming a low-rate VA loan in a high-rate market can save the buyer tens of thousands in interest.

Military example: A buyer assumes a seller's 3.0% VA loan instead of getting a new 7% loan.

Whether a housing payment fits safely within your income, debts, savings, and goals.

Why this matters: What you qualify for is usually higher than what you can comfortably afford.

Military example: A lender approves you for $500,000 but the safe MilHousing budget supports $400,000.

What's left of monthly income after taxes, debts, and required housing costs.

Why this matters: Available cash flow is what absorbs unplanned PCS costs, deployment shifts, or repairs.

Military example: After all required obligations, $1,400/month of available cash flow remains for savings and discretionary spending.

A plan that allocates monthly income across housing, debts, savings, and spending categories.

Why this matters: A real budget prevents over-spending on housing — the most common mistake first-time military buyers make.

Military example: A budget caps total housing (PITI + HOA + maintenance reserve) at a safe share of take-home pay.

Liquid cash held for closing costs, moving, repairs, and other near-term needs.

Why this matters: Strong reserves protect against PCS timing risk and short-notice expenses.

Military example: Closing on a home, moving cross-country, and replacing a major appliance all in the same month is normal — reserves absorb it.

Monthly debt payments divided by gross monthly income.

Why this matters: DTI is one of the top three factors in loan approval.

Military example: Reducing a $500/month car payment can meaningfully improve loan approval odds.

Take-home pay minus required deductions and taxes — the money actually available to spend or save.

Why this matters: Housing budgets should key off disposable income, not gross pay.

Military example: A family's disposable income drives how much PITI they can really absorb.

Liquid savings reserved for unexpected expenses — typically 3–6+ months of essential expenses.

Why this matters: Don't drain your emergency fund for a down payment; PCS, deployment, and repairs all hit harder without it.

Military example: A family keeps 4 months of PITI + essentials in a high-yield savings account.

A composite view of income stability, reserves, debt load, and net worth that signals how well you can absorb housing risk.

Why this matters: Stronger financial strength unlocks more housing options safely — buy, hold, convert, or upgrade.

Military example: A family with 6 months reserves, low DTI, and stable income has high financial strength.

The total monthly amount you can put toward housing — PITI, HOA, maintenance reserves, and utilities.

Why this matters: A real housing budget protects cash flow for savings, debt paydown, and PCS surprises.

Military example: A family caps housing at 30% of take-home pay including everything, not just PITI.

How quickly an asset can be turned into cash without major loss.

Why this matters: Home equity is illiquid — you can't tap it overnight without a HELOC, refi, or sale.

Military example: Savings and brokerage accounts are highly liquid; home equity is not.

All non-negotiable monthly bills — debts, insurance, child support, alimony, and minimum required savings.

Why this matters: Monthly obligations are what the lender uses for DTI and what really limits how much house you can afford.

Military example: Car loan + student loan + credit card minimums total $850 in monthly obligations.

Total assets minus total liabilities. The single best snapshot of overall financial health.

Why this matters: Housing decisions should grow net worth over time, not just feel good month to month.

Military example: Buying with low down payment can grow net worth quickly through paydown and appreciation — or shrink it after PCS selling costs.

How easily you can change housing without financial harm if orders shift unexpectedly.

Why this matters: Higher flexibility means you can pivot from buy to rent to convert without large losses.

Military example: A short lease and strong reserves give a family high PCS flexibility ahead of expected orders.

How prepared your finances are to absorb a PCS — cash reserves, lease flexibility, and home-sale or rental plans.

Why this matters: Low PCS readiness turns routine moves into financial emergencies.

Military example: A family with 3 months PITI reserved and a rental plan has high PCS readiness.

Side-by-side view of multiple PCS scenarios showing cost, equity, and risk over your assignment window.

Why this matters: Comparing scenarios surfaces the strategy that actually fits your timeline and risk tolerance.

Military example: Buy vs. rent at the same duty station shown side by side across a 3-year window.

Playbook score (typically 0–100) showing how confident the engine is in its housing recommendation.

Why this matters: Higher confidence means stronger signal; lower confidence means it's a close call worth a second look.

Military example: A Confidence Score of 85 on 'Buy' means inputs strongly favor buying over alternatives.

A score capturing how easily you could absorb a surprise PCS, deployment, or repair without financial harm.

Why this matters: High flexibility means more housing options safely available; low flexibility narrows the safe choices.

Military example: A family with thin reserves and high DTI has a lower flexibility score and is steered toward renting.

The Playbook's primary verdict (rent, buy, hold, sell, convert) based on your snapshot and scenarios.

Why this matters: The recommendation is a starting point — your risk tolerance and life context still matter.

Military example: A short PCS timeline + thin reserves often produces a 'Rent' recommendation.

A combined view of your base pay, BAH, BAS, debts, and savings that drives your housing recommendations.

Why this matters: The snapshot is what turns raw inputs into a recommendation you can trust.

Military example: Updating your BAH after a PCS instantly recalculates your safe housing budget.

The maximum total monthly housing cost (PITI + HOA + reserves) that fits your situation without strain.

Why this matters: This is the number to anchor on, not the lender's max approval.

Military example: A lender approves $3,200 PITI, but the Military-Safe budget caps it at $2,650.

Forecast of net proceeds, break-even timing, and risk if you sell at PCS rather than hold or convert.

Why this matters: Many buyers underestimate how long it takes to break even after a purchase.

Military example: Analysis shows a likely $12,000 net loss if forced to sell after a 2-year assignment.

A saved set of inputs (location, BAH, price, rates, timeline) representing one possible housing strategy at one duty station.

Why this matters: Scenarios let you stress-test the same PCS multiple ways — rent, buy, hold, sell, or convert.

Military example: You create a 'Buy at $400k' scenario and a 'Rent for $2,500' scenario for the same PCS to San Antonio.

How resistant a Playbook recommendation is to small changes in inputs (rate, price, BAH, timeline).

Why this matters: A stable recommendation is one you can trust through normal market noise — unstable ones flip easily.

Military example: A 'Rent' recommendation stays stable across +/- 0.5% rate moves and +/- $25 BAH changes.

Analysis of whether keeping your current home as a rental after PCS makes financial sense.

Why this matters: Converting to a rental can build long-term wealth — or create a money-losing remote landlord situation.

Military example: Analysis shows cash flow only works with a property manager and a 6% vacancy reserve.

How much financial uncertainty (vacancy, repairs, PCS timing, rate moves) you're willing to absorb.

Why this matters: Two identical families can get different recommendations because of risk tolerance.

Military example: A higher-risk-tolerance user may be comfortable with a converted rental; a lower-risk user may prefer to sell.

A saved set of PCS inputs representing one possible housing strategy (rent, buy, hold, sell, convert).

Why this matters: Scenarios let you compare strategies side by side without losing your work.

Military example: Save 'Buy at $400k', 'Rent for $2,500', and 'Convert current home' as three scenarios for the same PCS.

Side-by-side comparison of multiple PCS scenarios across cost, equity, cash flow, and risk.

Why this matters: Comparison is where the right strategy usually becomes obvious.

Military example: A buy scenario vs. a rent scenario shown across a 3-year window highlights the break-even difference.