Jacob McCrackin
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For many military families, receiving Permanent Change of Station (PCS) orders means making important decisions about housing. Should you sell your current home, keep it as a rental, or purchase another property at your next duty station? Each option has financial implications, and understanding your VA loan benefits can help you make the best choice for your situation.
One topic that’s receiving increased attention in today’s housing market is the assumability of VA loans. With mortgage rates significantly higher than they were just a few years ago, many military homeowners have VA loans with interest rates between 2.5% and 3.5%. Those low rates can become a major selling advantage because qualified buyers may be able to assume the existing loan rather than obtain a new mortgage at current market rates.
At the same time, military homeowners should understand how selling their home may affect their VA loan entitlement and when that entitlement can be restored. By learning how loan assumptions, entitlement restoration, and PCS timing work together, you can make informed decisions that maximize your home’s value and set yourself up for a smoother transition to your next assignment.
Unlike most conventional mortgages, many VA loans are assumable. This means an eligible buyer can take over your existing mortgage, including its interest rate, remaining balance, and repayment terms, provided they meet the lender’s and VA’s requirements.
In today’s higher-rate environment, assumability has become one of the strongest selling points a military homeowner can offer. Consider this example. If your mortgage carries a 2.75% interest rate while current mortgage rates are above 6%, a buyer who assumes your loan could potentially save hundreds of dollars each month compared to financing the same purchase with a new mortgage.
For military homeowners preparing for a PCS, this can be a significant advantage when trying to sell quickly. Those savings can:
A VA loan assumption isn’t as simple as handing over the mortgage. The buyer must complete an approval process through the loan servicer and meet specific financial qualifications.
Generally, the process includes:
Once approved, the buyer assumes responsibility for the remaining mortgage balance and continues making payments under the original loan terms. It’s important to remember that the purchase price may exceed the remaining loan balance.
When this happens, the buyer typically pays the difference through cash or secondary financing. For example, if your home sells for $425,000 but your assumable VA loan balance is $300,000, the buyer must cover the remaining $125,000 through another source.
A common misconception is that only veterans can assume VA loans. In reality, both veterans and non-veterans may be eligible to assume a VA mortgage, provided they satisfy lender and VA requirements.
However, whether the buyer is a veteran can have significant implications for your VA loan entitlement.
This is one of the most important considerations when selling your home.
VA loan entitlement is the portion of your loan guarantee provided by the Department of Veterans Affairs. It allows eligible service members, veterans, and qualifying surviving spouses to obtain favorable mortgage financing with little or no down payment.
When you use a VA loan, part of your entitlement becomes tied to that property. If you’re planning another home purchase after your PCS, restoring your entitlement should be part of your planning process.
In many situations, selling your home allows you to restore your VA loan entitlement. The most common way this happens is when the property is sold, the VA loan is paid in full during closing, and then your entitlement is restored.
Once restored, you can typically use your full VA benefit again for another qualifying home purchase. However, loan assumptions can create a different situation.
If another qualified veteran assumes your VA loan and substitutes their own entitlement, your entitlement can generally be restored. This is often the ideal scenario for military families who expect to purchase another home using a VA loan soon after their PCS.
If a non-veteran assumes your VA loan, your entitlement generally remains tied to that loan until it is eventually paid off. Even though you no longer own the home, some or all of your entitlement may remain unavailable.
This doesn’t necessarily prevent you from using another VA loan, but it could reduce the amount of entitlement available depending on your circumstances. Understanding this distinction before accepting an offer can help you avoid unexpected complications when purchasing your next home.
Receiving PCS orders often starts a countdown. Between coordinating movers, changing schools, finding housing at your next assignment, and preparing for relocation, selling a home can quickly become overwhelming. Planning ahead can reduce stress and improve your financial outcome.
Early preparation often leads to smoother transactions and fewer last-minute surprises. If you know PCS orders are likely, speaking with a real estate professional early allows you to:
If your mortgage has a significantly below-market interest rate, make sure buyers know. Marketing materials should clearly mention that the home features an assumable VA loan, subject to lender approval. In today’s market, this feature alone may generate additional interest and increase showing activity.
Military timelines don’t always align perfectly with real estate transactions. Having flexibility built into your contract may reduce unnecessary stress during the transition. Working with experienced professionals can help coordinate:
Not every PCS requires selling your property. Some military families choose to convert their current home into a rental while purchasing another home at their new duty station. Others decide that selling provides greater financial flexibility.
Factors to consider include:
Reviewing these factors with knowledgeable professionals can help determine which option best fits your situation.
Selling a home during a PCS is about more than simply putting a property on the market—it’s about making strategic decisions that protect your VA benefits and position you for a successful move to your next duty station. From understanding the value of an assumable VA loan to navigating entitlement restoration and coordinating tight military timelines, having the right guidance can make all the difference.
At Veterans Move Together, military relocations aren’t just another transaction—they’re our specialty. Jacob McCrackin is a Realtor® and a veteran, so he understands the unique challenges that come with PCS orders, including VA financing, assumable loans, entitlement questions, and the fast-paced timelines military families face. His knowledge allows him to successfully market assumable VA loans to attract qualified buyers, help you understand how your sale may affect your future VA loan eligibility, and coordinate every step of the process to minimize stress during your move.
Get the expertise and personalized support your family deserves. Contact Jacob today.