Preparing for a PCS With a Mortgage

When you get Permanent Change of Station (PCS) orders, you have a lot of decisions to make, often on a compressed timeline. Where will you live at your new duty station? How will you move your belongings? How will the move affect your family? And, if you currently own a home, you have another big question to answer: What happens to my mortgage?

The most important thing to understand is that you’re still responsible for your mortgage during a PCS. PCS orders don’t change your mortgage agreement. Your lender expects you to keep making payments on time, even after you move to your new duty station. 

You have several options that can protect your finances and work with your military lifestyle. Selling your home, renting it out or working with your lender all can help you manage your mortgage through this move. 

Let’s look at how each choice affects your payments and your finances.

3 options for managing your mortgage during a PCS

When you’re facing a PCS with a mortgage, you have 3 main paths forward: selling your home, renting out your property or working with your lender for alternative solutions.

1. Selling your home

Selling your home is the most straightforward way to handle your mortgage when you PCS. Once the sale goes through and you pay off your loan, you’ll be done with that mortgage. 

“One of the first things to consider is whether your current mortgage is a VA loan or conventional,” says Christopher Davis, Navy Federal Credit Union’s AVP of Residential Lending. VA loans are assumable, which means the assuming borrower will take over the original terms, payments and any legal responsibility associated with your existing mortgage. “This may make your home more marketable to sell,” he says.

When someone assumes your VA loan, they may use your VA loan benefit to do it. However, if they’re also a Servicemember or Veteran and they agree to use their own VA entitlement, it’s called “substitution of entitlement.” When you’re selling to a buyer who wants to assume your VA loan, you can ask that they use their own entitlement if they’re eligible. That may help restore your entitlement for potential use on a future VA loan.

If the person assuming your loan is not a Servicemember or Veteran, they may still assume your mortgage, but your entitlement will continue to be used for that loan. You may still have enough entitlement left to buy another home, but it would depend on your remaining benefit and how much the new home costs. Your lender may be able to provide more details on assessing your remaining entitlement.

A Military Relocation Professional or qualified real estate agent can help you understand your options so you can manage your benefit eligibility. They also can help you price your home competitively so you can sell quickly but still get a fair price. “Working with a real estate agent who understands the unique needs of Active Duty Servicemembers and can provide insight into selling or retaining the home for rental is critical,” Davis says.

If your home doesn’t sell before you move, you’ll need to keep making payments until it does.

2. Renting out your property

Renting out your home lets you keep the property while someone else pays rent. This works well if you think you might return to the area or if rental demand is strong where you live. 

Think about whether the rent you can charge will cover your mortgage payment, taxes and insurance. You’ll also need to manage the property from your new duty station or hire someone to do it.

You’re still responsible for the mortgage every month, whether the property is rented or not.

3. Working with your lender for alternative solutions

If you used a VA loan^{Footnote 1} to buy your home, you could refinance using an Interest Rate Reduction Refinance Loan (IRRRL). “The VA IRRRL is a reduced documentation and cost refinance benefit for all VA loans,” Davis says. “This can be a quicker and easier way to lower your rate and your monthly payment.” 

If you need help making payments when you’re away, ask about temporary and permanent mortgage assistance programs. Reach out to your lender early and explain your situation.

The pros and cons of selling, renting and working with your lender

	Pros	Cons
Selling	Eliminates your mortgage obligation No property management is needed Proceeds can help with next home purchase	May need to sell quickly and accept lower price Might carry two housing costs if home doesn’t sell before PCS VA loan assumption could affect future eligibility
Renting	Keep property as potential investment Rental income can offset mortgage You have the option to live there again	Responsible for the full mortgage payment Manage property from distance or pay for someone to do it Could limit VA loan eligibility at next duty station
Working with your lender	A range of mortgage relief options are available Both temporary or permanent options could be available Could maintain your credit if done proactively	Doesn’t eliminate the mortgage debt

Protections and programs for military families

Active Duty Servicemembers have access to protections and resources designed to help when military service affects your finances. Here’s what’s available to support you during a PCS.

Servicemembers Civil Relief Act (SCRA)

The SCRA is a federal law that provides financial and legal protections to Active Duty military members.

• It can cap your interest rate at 6% on mortgages you took out before starting Active Duty.
• It can lower your monthly payment if you qualify.
• You need to notify your lender and provide a copy of your orders.
• Not all situations qualify, so check with your lender about your specific loan.

Department of Veterans Affairs (VA) home loans

The type of mortgage you have can affect your options when you need to move due to PCS orders. VA loans offer unique benefits to military Servicemembers.

Military base resources

Your military installation has offices dedicated to helping with housing and legal questions. These services can help you understand your rights so you can make informed decisions.

• The housing office can provide resources and answer questions about PCS entitlements.
• Legal assistance offices offer consultations and can review your mortgage documents.

FAQs about PCSing with a mortgage

Can I buy a home at my new duty station before selling my current one?

It depends on your financial situation and loan type. Your lender will check to see if you can afford both mortgages. 

“Many Servicemembers may believe the myth that they must sell their home and pay off their VA loan to be able to get another. This is often not the case,” Davis says. He recommends working with your current lender or directly with the VA to see if it’s possible to get a second VA loan if you want to keep your current home. If you have a VA loan on your current home, it’s possible that your remaining entitlement may limit your new loan amount.

Talk to your lender and a real estate professional before you go house-hunting so you’ll understand your specific situation and options.

What if I can’t sell my home before I have to move?

You’ll need to keep making mortgage payments until it sells. This means paying for your current mortgage plus housing costs at your new duty station.

What happens to my VA loan eligibility if I rent out my current home?

If you have a VA loan and rent out your home, you may still have some remaining entitlement to use for another VA loan. However, the amount you can borrow may be limited until you sell or pay off the first property. Check with your lender about your specific entitlement.

Are there special listing services for military homes?

Yes. Sites like MilitarybyOwner and AHRN (Automated Housing Referral Network) connect military families who are buying and selling homes near bases. These platforms understand the unique circumstances of military buyers and sellers on PCS timelines.

How can a Military Relocation Professional help?

A Military Relocation Professional (MRP) understands PCS timelines and can help you price competitively, market to military buyers and navigate the sale quickly. They know the areas around military bases and understand VA loans and military-specific situations.

Does PCS count as financial hardship?

PCS on its own doesn’t automatically qualify as financial hardship for mortgage purposes. However, if your PCS could create a situation where you would not be able to afford your payments, talk to your lender about options for Active Duty Servicemembers.

Your PCS move is our mission

A PCS is more than just a permanent change of address—it’s a big transition for you and your family. Navy Federal can help you handle the financial side with confidence. Whether you need to explore VA IRRRL options, understand your VA loan benefits or plan your moving budget, we have PCS resources built for military life. 

Use our PCS Budgeting Calculator to map out your moving costs and housing expenses. If you’re thinking about buying a home at your next duty station, our VA Loan Calculator can help you estimate what you could afford. And explore our military life resources to find more helpful PCS tips.

With the right plan for your mortgage during a PCS, you can focus on what matters most—your mission and your family.