When you receive Permanent Change of Station (PCS) orders, the immediate question for many Veterans is: What happens to my current home and VA loan? Understanding your options and planning strategically can save thousands of dollars while positioning you for financial success at your new duty station. This comprehensive checklist guides you through every critical decision, from managing your current property to securing housing at your next location.

Understanding Your VA Loan Options During a PCS Move

The VA loan program offers unique flexibility for military homeowners facing relocation. Unlike conventional mortgages, VA loans provide multiple pathways that accommodate the unpredictable nature of military service. You can keep your current home as a rental property, sell it with potential assumption benefits, or purchase a new home at your next duty station while retaining your existing property.

After living in your VA-financed home for at least one year, you can convert it to a rental property without refinancing. This occupancy requirement flexibility recognizes that PCS orders represent legitimate reasons for vacating your primary residence. The VA considers PCS orders and deployments as "temporary duty status," which doesn't affect your occupancy status.

Your entitlement calculation determines whether you can secure a second VA loan while keeping your first property. Basic entitlement provides $36,000, while bonus entitlement covers loans above $144,000 at 25% of the loan amount. For 2026, conforming loan limits in most counties allow for $832,750 in total loan guaranty, though high-cost areas may have higher limits.

Pre-Move Financial Assessment (6-8 Weeks Before PCS)

Calculate Your Housing Budget at the New Location

Start by understanding your financial position at both locations. BAH rates for 2026 increased by 4.2%. Use the Defense Travel Management Office's BAH calculator to determine your exact allowance at your new duty station.

Review your current mortgage details, including remaining balance, interest rate, and monthly payment. If your loan originated between 2020-2022 with rates between 2.5-3.5%, this becomes a valuable selling point whether you rent or sell through assumption.

Request Your Certificate of Eligibility (COE)

Obtain an updated COE through VA.gov or your lender to verify your remaining entitlement. This document reveals how much of the VA loan benefit remains available for purchasing at your new location. Veterans can restore entitlement if a qualified Veteran agrees to assume the loan and substitute their entitlement, or if you've paid off your prior loan but kept the property (one-time restoration).

Making the Keep vs. Sell Decision (4-6 Weeks Before PCS)

Option 1: Converting to a Rental Property

Keeping your home as a rental offers several advantages. Current rental markets in many military communities exceed mortgage payments, potentially generating positive cash flow. Tax benefits include deducting mortgage interest, property taxes, maintenance, and depreciation.

Before deciding to rent, verify your mortgage allows rental conversion after meeting occupancy requirements. Research local rental rates through property management companies familiar with military transitions. Factor in management fees (typically 8-10% of rent), maintenance reserves, and potential vacancy periods between tenants.

When applying for a second VA loan while renting your first property, lenders apply a 25% vacancy factor to rental income calculations and require a fully executed lease agreement. Your debt-to-income ratio must accommodate both mortgages, though rental income helps offset the first payment.

Option 2: Selling Through VA Loan Assumption

VA loan assumptions allow buyers to take over your existing mortgage, inheriting your interest rate and remaining balance. With current mortgage rates around 6% in 2026, loans originated at lower rates become highly attractive to buyers.

The assumption process requires lender approval and typically takes 45-90 days. Buyers pay a 0.5% VA funding fee on the remaining loan balance, significantly less than standard VA loan funding fees. Both Veterans and civilians can assume VA loans, though only Veteran assumers can substitute their entitlement for yours.

Without entitlement substitution, your VA benefit remains tied to the property until the assuming buyer pays off or refinances the loan. Consider this carefully if you need full entitlement for your next home purchase.

Option 3: Traditional Sale

Selling outright restores your full VA entitlement immediately upon loan payoff. Work with a Military Relocation Professional (MRP) who understands PCS timelines and can coordinate showings while you're preparing to move. Establish power of attorney with a trusted representative if you'll depart before closing.

Budget for selling costs, including real estate commissions (typically 6%), minor repairs, staging, and potential buyer-requested concessions. In competitive markets, VA buyers often request seller-paid closing costs.

Securing Housing at Your New Location (2-4 Weeks Before PCS)

Research Your New Market

Connect with the sponsorship program at your gaining installation for local housing insights. Research neighborhoods considering commute times, school districts, and proximity to base amenities. Virtual tours and online research tools help narrow options before house-hunting trips.

If not moving into government quarters, you qualify for Dislocation Allowance ranging from $1,802.10 to $6,151.81 based on rank and dependents. Request this advance from your losing base's finance office to help cover initial housing costs.

Coordinate Temporary Housing

Plan for potential gaps between arrival and move-in. On-base temporary lodging facilities offer priority booking for PCS families. Temporary Lodging Allowance (TLA) helps offset initial housing and meal expenses while awaiting permanent housing.

Research extended-stay hotels near your new base that offer military rates. Many provide kitchenettes and separate living areas, making longer stays more comfortable for families.

Essential Documentation Checklist

Financial Documents

  • Current mortgage statements for all properties
  • Recent pay stubs showing BAH
  • Tax returns (2 years)
  • Bank statements (2-3 months)
  • Investment account statements
  • Credit report from all three bureaus

Military Documents

Property Documents

  • Homeowners insurance policy
  • Property tax statements
  • HOA documents (if applicable)
  • Home warranty information
  • Recent utility bills
  • Maintenance records

Timeline Management Strategies

8 Weeks Before PCS

  • Receive and review orders
  • Contact current mortgage servicer
  • Interview real estate agents at both locations
  • Begin decluttering and pre-inspection repairs

6 Weeks Before PCS

  • Decide keep/sell/rent strategy
  • List property if selling
  • Screen property management companies if renting
  • Schedule household goods shipment

4 Weeks Before PCS

  • Finalize financing pre-approval for new location
  • Complete house-hunting trip if possible
  • Execute lease agreements for rentals
  • Submit VA loan assumption package if applicable

2 Weeks Before PCS

  • Complete property walk-through
  • Transfer utilities
  • Update insurance policies
  • Confirm temporary lodging reservations

Moving Week

  • Final property inspection
  • Close on sale or transfer to property manager
  • Secure all documentation
  • Complete finance out-processing

Maximizing Financial Benefits

Take advantage of all available allowances and reimbursements. PCS Travel Advance provides up to 80% of eligible travel costs without repayment requirements when requested 10+ days before departure. Track all moving-related expenses for potential tax deductions, including house-hunting trips, temporary lodging, and mileage.

Consider the tax implications of your housing decision. Rental property offers depreciation deductions, while selling may qualify for capital gains exclusion if you've lived in the home for two of the past five years. Consult a tax professional familiar with military relocations.

Common Pitfalls to Avoid

Underestimating timeline requirements: VA loan assumptions and traditional sales often take longer than expected. Start the process immediately upon receiving orders.

Overlooking entitlement limitations: Without full entitlement restoration, subsequent VA loans may require down payments based on remaining entitlement and county loan limits.

Neglecting property management vetting: Poor property management can damage your investment and credit. Thoroughly research companies, checking references from other military landlords.

Missing documentation: Incomplete paperwork delays transactions. Maintain digital copies of all documents accessible from any location.

Ignoring market conditions: Home values and rental rates fluctuate. Get current market analyses rather than relying on outdated information.

Post-Move Considerations

After settling at your new location, update your VA loan information and maintain records for both properties if you kept your original home. Monitor rental income and expenses carefully for tax purposes. Stay informed about your original property's market value for future sale decisions.

Review your overall financial strategy annually. Rising property values or changing interest rates may create refinancing opportunities. Consider whether maintaining rental property aligns with long-term financial goals as you approach subsequent PCS moves or retirement.

Final Thoughts

Successfully navigating a PCS move with a VA loan requires early planning, thorough documentation, and strategic decision-making. Whether you keep, sell, or rent your current home, understanding your options empowers you to make choices that support your long-term financial goals while meeting immediate relocation needs. Read more about VA loans. 

FAQs

Can I rent my VA-financed home immediately after receiving PCS orders? 

Yes, PCS orders qualify as an acceptable reason to vacate your primary residence. The VA recognizes PCS orders as legitimate grounds for converting your primary residence to a rental property after meeting initial occupancy requirements.

How much VA entitlement do I need for a second home? 

Your remaining entitlement depends on your first loan amount and the current county limits. Veterans with partial entitlement may need down payments if the remaining entitlement doesn't cover 25% of the new loan amount.

What happens to my VA entitlement if a civilian assumes my loan?

 If a civilian assumes your VA loan, your entitlement remains tied to that property until the loan is paid off. Only Veteran assumers can substitute their entitlement for yours, fully restoring your benefit.

How long does the VA loan assumption process take? 

The assumption process typically takes 45-90 days, depending on the lender and complexity. Some lenders lack automatic assumption authority and must submit requests to regional VA offices, potentially extending timelines.

Can I use rental income to qualify for my second VA loan? 

Yes, but lenders require a fully executed lease and typically apply a 25% vacancy factor to account for potential gaps between tenants. You generally need two years of rental history before lenders fully consider this income.