Each year, more than 400,000 service members relocate to new duty stations, and assignments often last two to four years. Your VA loan benefit is designed to support your homeownership journey throughout these relocations, with flexibility that conventional mortgages don't match.
VA Loan Eligibility for Active-Duty Service Members
You don't need to wait until you leave military service to use your VA loan benefit. Current active-duty service members can qualify after serving at least 90 continuous days.
For Veterans who have already separated from service, eligibility requirements vary based on when you served. Those who enlisted after September 7, 1980, generally need either 24 continuous months of active duty or the full period called to active duty (at least 90 days during wartime or 181 days during peacetime).
National Guard and Reserve members can qualify after 90 days of active-duty service including at least 30 consecutive days, or after six years of service in the Selected Reserve or National Guard.
Your first step is obtaining a Certificate of Eligibility (COE). You can request your COE the following ways:
- Online through VA.gov
- Through your lender
- By mail using VA Form 26-1880
Understanding VA Loan Entitlement
Your VA loan entitlement represents the amount the VA will guarantee to your lender if you default on your loan, not your borrowing limit. This guarantee allows many qualified borrowers to purchase homes without a down payment. For standard home loans, the VA typically guarantees up to 25% of the loan amount, known as bonus or second-tier entitlement.
The VA loan benefit can be used multiple times throughout your life. If you have remaining entitlement after using a VA loan, you may purchase another home with a second VA loan before selling your first property. This becomes especially important when facing PCS orders.
To know your remaining entitlement, check your COE, which shows any entitlement you've already used. Your lender can help you determine whether you have sufficient remaining entitlement to purchase another home without requiring a down payment. The calculation depends on the county loan limit where you want to purchase and how much entitlement you've previously used.
VA Loan Occupancy Requirements and Military Exceptions
VA loans require you to occupy the property as your primary residence. You must move into the home within 60 days of closing and intend to make it your primary residence for at least one year.
When you receive PCS orders to a new duty station before that year is complete, the VA provides an exception. You can rent out your property if your new duty station is too far to commute. Provide a copy of your PCS orders to your lender to document this exception.
If you're married and unable to occupy the property immediately due to active-duty requirements, your spouse can fulfill the occupancy requirement on your behalf. This applies when you're deployed or stationed elsewhere during the home purchase.
Using Multiple VA Loans Simultaneously
Military homeowners can use remaining entitlement to purchase a second home before selling a VA-financed property. This requires sufficient remaining entitlement to cover 25% of your new loan amount. Your lender must approve you based on credit, income, and debt-to-income ratio, considering both mortgage payments in the qualification process.
Restoring VA Loan Entitlement
You may be able to restore entitlement after selling a property and paying off the VA loan in full. The VA also allows one-time restoration even if you haven't sold the property, as long as you've paid the loan in full. This can be valuable if you plan to keep a property as a rental long-term.
Another restoration option is when a qualified Veteran purchases your home and assumes your VA loan, substituting their entitlement for yours.
Qualifying With Military Income
Active-duty service members can count their Basic Allowance for Housing (BAH) toward qualifying for a VA loan. Your Leave and Earnings Statement (LES) documents your BAH and other allowances. Lenders also require a statement of service showing your full name, Social Security number, date of birth, entry date, and any lost time.
Timing Considerations for Home Purchases
Once you receive PCS orders, you typically have several months to make major housing decisions. Starting the home-buying process immediately after receiving orders provides maximum flexibility. Getting pre-approved before house hunting clarifies your budget and demonstrates serious buyer intent.
VA loans don't require traditional down payments or private mortgage insurance, which can expedite closing. However, the VA appraisal and inspection process requires time, so build buffer days into your timeline.
Consider whether another PCS move seems likely within two to three years. Transaction costs for buying and selling can be significant, requiring sufficient time to build equity.
Converting Your Home to a Rental Property
After satisfying the initial occupancy requirement, you can rent your property to anyone. However, becoming a landlord involves responsibilities: property management if stationed far away, maintenance expenses, vacancy periods between tenants, and tax implications of rental income.
Rental income can offset your mortgage payment. Consult with a tax professional to understand how rental property ownership affects your situation
You may be able to deduct:
- Mortgage interest
- Property taxes
- Insurance
- Repairs
- Depreciation
VA Loan Refinancing While Serving
The Interest Rate Reduction Refinance Loan (IRRRL), also called a VA streamline refinance, allows you to refinance your existing VA loan to a lower interest rate with minimal documentation. You don't need a new COE for an IRRRL. You only need to certify that you previously occupied the home as your primary residence.
This option can be valuable if interest rates have dropped since your purchase or if you want to switch from an adjustable-rate to a fixed-rate mortgage for payment stability.
Your VA loan benefit supports you throughout your military career. Whether facing your first PCS move or your tenth, understanding how VA loans work helps you make informed homeownership decisions.
Frequently Asked Questions
Can I use my VA loan while deployed?
Yes. Your spouse can fulfill the occupancy requirement on your behalf. You'll need to provide deployment orders and may need a power of attorney for closing documents.
What if I receive PCS orders right after buying a home?
PCS orders provide an exception to the 12-month occupancy requirement. You can rent out your property if your new duty station is too far to commute. Provide your orders to your lender to document this exception.
Can I buy at my new duty station before selling my current VA-financed home?
Yes, if you have sufficient remaining entitlement. The VA allows two VA loans simultaneously when military service requires relocation. Your lender must approve you for both loans based on your income and debt-to-income ratio.
How do I know how much entitlement I have remaining?
Check your most recent Certificate of Eligibility, which shows any entitlement you've already used. Your remaining bonus entitlement depends on the county loan limit where you want to purchase.
Do I notify the VA when I PCS and rent out my home?
You don't notify the VA directly, but inform your loan servicer of your new address and that the property is being rented.
