Yes — you can typically use BAH as part of your income on an application for a VA loan. If you’re interested in using this benefit, you’ll simply need to show your lender proof of how much you receive each month, and they will usually be able to add it to your income on the VA loan application.
From a lender’s perspective, Basic Allowance for Housing is a stable and reliable income source. Although BAH rates are recalculated each year, rate protections help ensure service members aren’t left in the lurch if their regional allowance decreases. Any published BAH increase will still be applied on an annual basis.
As long as the service member doesn’t change their dependent status, receive a permanent change of station or receive a reduction in pay grade, BAH won’t decrease year to year. BAH is a safe source of income in the eyes of a VA lender.