Mortgage With Military Income
Base pay and allowances like housing and food can count toward a home loan. Active duty has no minimum time requirement on a conventional loan.
What you need to qualify
Each item below is a requirement of conventional loans, FHA, or at least one other program we offer.
- Your most recent Leave and Earnings Statement, dated within 120 days of the note date.
- Active duty: no minimum history for your pay to count.
- Guard or Reserve: a 12-month history of that income.
- On FHA, if your service end date is within the first 12 months of the loan, your stated intent to continue serving.
- On at least one VA program, allotments on your LES are reviewed for debts.
- On FHA, military education benefits do not count as income.
Allowances count too
Active duty qualifies
Guard and Reserve pay
Non-taxable gross-up
Deployed still counts
FHA names BAH and BAS
What Military Income Counts
Base pay plus many allowances. The loan type decides how each one is documented and counted.
Conventional loans count base pay plus allowances such as flight or hazard pay, rations, clothing allowance, quarters allowance, and proficiency pay. The lender can include the full amount of your monthly base pay and allowances. If an allowance will be lowered, the lower amount is used, and one that will stop is not counted.
FHA names the Basic Allowance for Housing and the Basic Allowance for Subsistence, and lists military allowances as non-taxable income that can be grossed up. For more on that, see our non-taxable income gross-up.
On active duty there is no set minimum history for your pay to count on a conventional loan. National Guard and Reserve income needs a 12-month history. Military education benefits do not count on FHA.
Why choose Saxton for a mortgage with military income
For active duty, Guard, and Reserve borrowers who want their pay and allowances counted correctly.
Allowances Count Too
Conventional loans count flight or hazard pay, rations, clothing allowance, quarters allowance, and proficiency pay along with base pay.
Active Duty Qualifies Now
There is no set minimum history for active duty income on a conventional loan. Guard and Reserve income needs 12 months.
Your LES Is The Pay Stub
Conventional loans use your most recent Leave and Earnings Statement dated within 120 days of the note date. At least one VA program does not require W-2 forms to verify prior employment for active duty borrowers.
Tax-Free Pay Grossed Up
FHA lists military allowances as non-taxable and can gross them up by up to the greater of 15 percent or your tax rate. Conventional loans can add 25% of verified non-taxable income that is likely to continue.
Deployed Still Counts
A service member on active duty who is temporarily away because of military service is considered an owner occupant on a conventional loan, with a copy of your military orders. On FHA, a family member can live in the home while you serve, or you can plan to move in after discharge.
FHA Names BAH And BAS
FHA lists the Basic Allowance for Housing and the Basic Allowance for Subsistence as military income. If your service end date falls in the first 12 months of the loan, you state your intent to keep serving.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about using military pay to qualify for a home loan.
Yes. FHA names the Basic Allowance for Housing, and conventional loans count quarters allowance along with base pay.
On a conventional loan, active duty income has no set minimum history requirement.
Yes. A conventional loan needs a 12-month history, and FHA counts pay from Reserve or National Guard service.
Your most recent Leave and Earnings Statement. On a conventional loan it must be dated within 120 days of the note date.
Yes. FHA can gross up non-taxable military allowances by up to the greater of 15 percent or your tax rate, and conventional loans can add 25% of verified non-taxable income that is likely to continue.
Not on FHA. Military education benefits cannot be used as income.
On a conventional loan, a service member on active duty who is temporarily away because of military service is still considered an owner occupant. A copy of your military orders is required.
Find out what you qualify for
Tell us about your pay, your allowances, and your service, and we will show you how they count.
Get Pre-QualifiedLoan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.