PCS Orders and VA Loan Occupancy: What You Need to Know

Permanent change of station orders and VA occupancy rules collide constantly for active-duty families — the VA anticipated this, and built in flexibility.

The occupancy requirement, and its exceptions

VA loans require the veteran or service member to certify intent to occupy the home as a primary residence, generally within 60 days of closing. For active-duty borrowers with PCS orders in hand, occupancy rules allow:

• A spouse to satisfy the occupancy requirement on the service member's behalf if orders separate the family before closing
• Documented delayed occupancy in some cases tied to deployment or a follow-on move, at the lender's discretion

Using a second VA loan on PCS orders

Many career service members buy a home with a VA loan at one duty station, get PCS orders, and need to buy again at the next one — without selling the first home. This is possible using remaining entitlement:

• If your first VA loan didn't use your full entitlement (common on lower-priced homes or partial entitlement scenarios), you may have enough left to get a second, simultaneous VA loan.
• The first home can be kept as a rental; the VA does not require you to sell it to use remaining entitlement, though your remaining entitlement — and therefore your $0-down buying power on the new home — will be reduced by what's tied up in the first loan.
• With full entitlement remaining, there's no VA loan limit on the second loan either.