VA Loan Benefits for a Permanent Change of Station (PCS)

Your VA loan entitlement is the cornerstone of your home buying power as a military service member. The VA guarantees a portion of your loan, which is what allows lenders to offer you a mortgage with no down payment. Every eligible service member has a basic entitlement of $36,000, and a bonus entitlement that extends your purchasing power to the conforming loan limit in your county, which for El Paso County in 2025 is $806,500. Understanding how your entitlement works during a PCS is critical because it determines whether you can buy a new home at your next duty station, whether you need to sell your current home first, and whether you can hold two VA loans simultaneously.

When you purchase a home using your VA loan, a portion of your entitlement is tied up in that property. If you sell the home and pay off the VA loan in full, your entitlement is restored automatically, and you can use it again at your next duty station. This is the simplest scenario and the one most military families experience. You buy a home at Fort Bliss, receive PCS orders, sell the home before you leave, pay off the mortgage, and your full VA entitlement is available for your next purchase. The VA does not limit the number of times you can use your benefit, so you can repeat this process at every duty station throughout your entire career.

However, the situation becomes more complex if you want to keep your current home as a rental property when you PCS. Many military families in El Paso choose to hold onto their homes because the rental market is strong, property values have been appreciating, and they want to build long-term wealth through real estate. If you keep your El Paso home and the VA loan attached to it, your entitlement remains partially used. The good news is that you may still have enough remaining entitlement to purchase another home at your new duty station using a second VA loan. This is known as having a second-tier or bonus entitlement, and it is one of the most powerful but least understood aspects of the VA loan program.

The Certificate of Eligibility, or COE, is the official document that shows your VA loan entitlement status. Before making any housing decisions during a PCS, you should obtain an updated COE to see exactly how much entitlement you have available. Your lender can pull this electronically through the VA's Web LGY system, or you can request it yourself through the eBenefits portal. The COE will show your total entitlement, how much is currently in use, and how much remains available. This information is essential for determining your purchasing power at your next duty station.

One important rule to understand is the VA occupancy requirement. When you use a VA loan to purchase a home, you must certify that you intend to occupy the property as your primary residence within 60 days of closing. During a PCS, this requirement applies to your new home at your next duty station. If you are keeping your El Paso home as a rental, you are not violating the occupancy requirement on that property because PCS orders are a recognized exception. The VA understands that military service requires relocation, and they do not penalize you for converting a former primary residence into a rental when you receive orders to move. This is a critical distinction that allows military families to build real estate portfolios over time while continuing to use their VA loan benefit.

For many military families receiving PCS orders from Fort Bliss, selling the home quickly is the top priority. The typical PCS timeline gives you 30 to 90 days between receiving orders and your report date at the new duty station. That is an extremely tight window to list a home, find a buyer, negotiate a contract, complete inspections, and close the sale. The pressure is real, and making the wrong decision can cost you thousands of dollars or leave you carrying two mortgages simultaneously. Understanding your options and having a plan in place before orders arrive is the best way to protect yourself financially.

The El Paso real estate market has unique characteristics that affect how quickly you can sell. The market is heavily influenced by military rotations, which means there are seasonal patterns in buyer demand. Summer months, when most PCS moves occur, tend to have both more sellers and more buyers. Homes that are priced correctly and in good condition can sell within two to four weeks in a healthy market. However, homes that need repairs, have title issues, or are overpriced can sit for months. If you are facing a tight PCS timeline, you need to be realistic about your home's condition and price it to sell quickly rather than holding out for top dollar.

If your timeline is extremely tight or your home needs work, selling to a cash home buying company in El Paso may be the fastest solution. Cash buyers can close in as little as seven to fourteen days, purchase homes in any condition, and eliminate the uncertainty of buyer financing falling through. While you may receive a lower price than a traditional sale, the speed, certainty, and convenience can be worth it when you are on a military timeline. Many Fort Bliss families have used this option successfully when they received short-notice PCS orders and needed to close before their report date.

Another option is to list with a real estate agent who specializes in military relocations. These agents understand PCS timelines, know how to price homes for quick sales, and can manage the process remotely if you need to leave before closing. If you are considering this route, our guide on selling your El Paso home during a PCS move provides detailed strategies, tips, and resources specifically for military families. You can also explore how to sell your house fast in El Paso for additional methods that work within compressed timelines.

If you owe more on your mortgage than your home is worth, which can happen if you purchased during a market peak or have not been in the home long enough to build equity, you face additional challenges. A short sale may be an option for underwater homeowners , but it requires lender approval and can take months to complete. Alternatively, if you are struggling with your mortgage payments during the transition, understanding your loan modification options or exploring a deed-in-lieu of foreclosure can help you avoid the devastating impact of foreclosure on your credit and your VA loan entitlement. Protecting your VA loan benefit should be a top priority during any PCS transition, and our guide on selling your home to save your VA loan from delinquency explains exactly how to do that.

One of the most common questions military families ask when receiving PCS orders is whether they should sell their home or keep it as a rental property. The answer depends on several factors, including your financial situation, the local rental market, your remaining VA loan entitlement, your comfort level with being a long-distance landlord, and your long-term investment goals. El Paso has historically been a strong rental market due to the constant influx of military families, the presence of Fort Bliss, and a growing civilian population. Many service members who have kept their El Paso homes as rentals have built significant wealth over time through appreciation and rental income.

The financial math is straightforward. If your monthly mortgage payment including principal, interest, taxes, insurance, and any HOA fees is less than the market rent for your home, you have positive cash flow. In El Paso, a typical three-bedroom home near Fort Bliss might rent for $1,400 to $1,800 per month depending on the neighborhood, condition, and amenities. If your VA loan payment is $1,200 per month, you could net $200 to $600 per month in positive cash flow before accounting for maintenance, vacancy, and property management costs. Over time, your tenant is paying down your mortgage, your property is appreciating in value, and you are building equity without any additional investment of your own money.

However, being a landlord from across the country or overseas comes with real challenges. You will need a reliable property management company to handle tenant screening, rent collection, maintenance requests, and legal compliance. Property management fees in El Paso typically range from 8 to 10 percent of monthly rent. You also need to budget for repairs, vacancies between tenants, and potential problem tenants. If you are considering this path, our comprehensive guide on selling or managing rental property provides detailed information about the responsibilities, costs, and legal requirements of being a landlord in Texas.

From a VA loan perspective, keeping your home as a rental means your entitlement remains partially tied up. As discussed earlier, you may still have enough remaining entitlement to purchase at your next duty station. The key calculation involves comparing your current VA loan amount against the county loan limit at your new location. If the difference provides enough entitlement to cover 25 percent of your new purchase price, you can buy with zero down payment. If not, you may need a small down payment to cover the gap. A lender experienced with military VA loans can run these numbers for you quickly and tell you exactly where you stand.

Another consideration is the Servicemembers Civil Relief Act, commonly known as SCRA. This federal law provides important protections for military members, including a cap on mortgage interest rates at 6 percent for loans taken out before entering active duty. However, SCRA protections apply to the service member personally, not to the property. If you are renting out your home, the SCRA interest rate cap still applies to your mortgage as long as you are on active duty and the loan was originated before your current period of service. This can provide significant savings on your monthly payment and improve your rental cash flow.

Tax implications are another important factor. Rental income is taxable, but you can deduct mortgage interest, property taxes, insurance, property management fees, repairs, depreciation, and other expenses related to the rental. Many military landlords find that depreciation alone offsets a significant portion of their rental income for tax purposes. Consult with a tax professional who understands military-specific tax situations to ensure you are maximizing your deductions and complying with all reporting requirements. If you later decide to sell the rental property, you may face capital gains taxes, although the Servicemembers Civil Relief Act provides some extensions on tax deadlines for deployed service members.

The military provides a comprehensive package of moving benefits and financial assistance to help service members and their families relocate during a Permanent Change of Station. Understanding these benefits is essential because they can offset thousands of dollars in moving costs and reduce the financial stress of a PCS transition. The military moving assistance programs available to you depend on your branch of service, rank, family size, and the distance of your move. Here is a detailed breakdown of the primary military moving benefits you should know about.

Beyond the standard PCS entitlements, the Army Relocation Assistance Program provides additional support through the Army Community Service centers located on every installation, including Fort Bliss. These centers offer relocation counseling, destination area information, school liaison services for children, spouse employment assistance, and financial planning resources. The relocation assistance program is free and available to all active duty soldiers and their families. If you are PCSing from Fort Bliss, the ACS center can provide specific information about your new duty station, connect you with sponsors at your gaining installation, and help you create a comprehensive relocation plan.

Financial assistance for veterans moving after retirement or separation is different from active duty PCS benefits. If you are retiring from the military, you are entitled to one final PCS move to your home of selection. This move must be completed within one year of your retirement date, although extensions can be granted in certain circumstances. The military will move your household goods to any location within the continental United States, or to a location outside the US if it does not exceed the cost of moving to your home of record. Military retirement moving benefits are essentially the same as a standard PCS move in terms of weight allowances and transportation, but you do not receive BAH at your new location since you are no longer on active duty.

For veterans who have already separated and are moving for employment, education, or personal reasons, the VA does not provide direct moving assistance. However, several programs exist to help. The VA's Veteran Readiness and Employment program, formerly known as Vocational Rehabilitation, may cover relocation costs if you are moving for a job or training program related to your rehabilitation plan. Additionally, some nonprofit organizations provide financial assistance for veterans moving, including grants for security deposits, first month's rent, and moving expenses. Organizations like the Veterans of Foreign Wars, the American Legion, and local veteran service organizations in El Paso can connect you with these resources.

Purchasing a home at your new duty station using your VA loan benefit is one of the smartest financial moves you can make during a PCS. Instead of paying rent that builds no equity, you are investing in a property that appreciates over time while your monthly payment remains stable. The VA loan's zero down payment requirement means you do not need to save tens of thousands of dollars for a down payment, which is especially valuable for military families who move frequently and may not have had time to accumulate large savings. The absence of private mortgage insurance saves you an additional $100 to $300 per month compared to a conventional loan with less than 20 percent down.

The home buying process with a VA loan follows the same general steps as any home purchase, but there are some military-specific considerations. First, you need your Certificate of Eligibility showing available entitlement. Second, you should get pre-approved with a VA-experienced lender before you start house hunting. Third, you need to find a real estate agent at your new location who understands VA loans and military timelines. Many agents are unfamiliar with VA appraisal requirements, the VA funding fee, and the specific closing cost rules that apply to VA loans. Working with an agent who has military relocation experience will save you time and prevent costly mistakes.

One unique advantage of the VA loan during a PCS is the ability to start the home buying process before you physically arrive at your new duty station. You can get pre-approved, search for homes online, and even make offers remotely. Many military families use video tours and virtual walkthroughs to narrow down their options before a house-hunting trip. Some installations offer permissive TDY specifically for house hunting, giving you several days of authorized absence to travel to your new location and view properties in person. Take advantage of this time to visit neighborhoods, check commute routes to the installation, evaluate school districts, and get a feel for the community.

The VA funding fee is a one-time charge that helps fund the VA loan program. For first-time VA loan users with no down payment, the funding fee is 2.15 percent of the loan amount. For subsequent uses, it increases to 3.3 percent. However, veterans with service-connected disabilities rated at 10 percent or higher are completely exempt from the VA funding fee, which can save you $4,000 to $8,000 or more on a typical home purchase. If you have a disability rating, make sure your lender applies the exemption. You can learn more about how your disability rating affects your property taxes in our guide on the disabled veteran property tax exemption in El Paso.

One of the most powerful but least understood features of the VA loan program is the ability to hold two VA loans at the same time. This is not a special program or an exception. It is a standard feature of the VA loan benefit that is available to any eligible service member who has sufficient remaining entitlement. For military families who want to keep their current home as a rental and buy at their new duty station, concurrent VA loans make this possible without needing to refinance into a conventional mortgage or come up with a large down payment.

The mechanics of concurrent VA loans revolve around your entitlement. The VA guarantees up to 25 percent of the county loan limit for each loan. If your first VA loan in El Paso used $50,000 of your entitlement on a $200,000 home, and the county loan limit at your new duty station is $766,550, you have a substantial amount of remaining entitlement available. Your lender will calculate the exact amount by subtracting your used entitlement from 25 percent of the county loan limit at your new location. If the remaining entitlement covers at least 25 percent of your new purchase price, you can buy with zero down payment. If there is a gap, you may need a small down payment to cover the difference, but it will be far less than the 5 to 20 percent required by conventional loans.

Here is a practical example. Suppose you purchased a home in El Paso for $250,000 using your VA loan. Your entitlement used on that property is $62,500, which is 25 percent of the purchase price. Now you receive PCS orders to a location where the county loan limit is $766,550. Your maximum available entitlement at the new location is 25 percent of $766,550, which equals $191,637. Subtract the $62,500 already in use, and you have $129,137 in remaining entitlement. This remaining entitlement can support a zero-down-payment purchase of up to $516,550 at your new duty station. If you want to buy a more expensive home, you would need a down payment only on the amount exceeding what your remaining entitlement covers.

There are important qualifications for holding concurrent VA loans. You must meet the lender's debt-to-income ratio requirements, which means your total monthly debt payments including both mortgages cannot exceed approximately 41 percent of your gross monthly income, although some lenders allow higher ratios with compensating factors. You also need to demonstrate that you can afford both mortgage payments. If you are renting out your El Paso home, most lenders will count 75 percent of the rental income as qualifying income, which helps offset the mortgage payment on that property.

The VA funding fee on your second concurrent VA loan will be higher than your first. For subsequent use with no down payment, the funding fee is 3.3 percent compared to 2.15 percent for first-time use. On a $300,000 loan, that is an additional $3,450 in fees. However, if you have a service-connected disability rating of 10 percent or higher, you are exempt from the funding fee entirely on all VA loans, which eliminates this additional cost. This is yet another reason why obtaining and documenting your VA disability rating is so important for your long-term financial health. The funding fee can be rolled into the loan amount, so it does not require cash at closing, but it does increase your loan balance and monthly payment.

Basic Allowance for Housing, or BAH, is the monthly payment the military provides to service members to cover housing costs when government quarters are not available. BAH rates vary significantly by duty station, rank, and dependency status. Understanding how BAH works at both your current and future duty stations is critical for making smart housing decisions during a PCS. The goal is to align your mortgage payment with your BAH so that your housing costs are covered by your allowance, allowing you to use your base pay for other expenses and savings.

El Paso BAH rates are moderate compared to many other military installations. For 2025, an E-6 with dependents at Fort Bliss receives approximately $1,500 per month in BAH, while an O-3 with dependents receives approximately $1,800. These rates are based on the local cost of housing and are recalculated annually by the Department of Defense. When you PCS to a new location, your BAH changes to reflect the housing costs at your new duty station. If you are moving to a higher-cost area like San Diego, Northern Virginia, or Hawaii, your BAH will increase substantially. If you are moving to a lower-cost area, it will decrease.

The strategic implication is significant. If you are PCSing from El Paso to a higher-BAH location, you have more purchasing power at your new station. You can afford a larger mortgage payment, which means you can buy a more valuable home and build equity faster. Conversely, if you are moving to a lower-BAH area, you need to be careful not to overextend yourself. A common mistake is buying a home at your current station based on your current BAH, then struggling to afford it as a rental when your BAH changes at your new location. Always run the numbers for both scenarios before deciding whether to keep or sell.

One important BAH rule that affects PCS housing decisions is the BAH rate protection policy. If BAH rates decrease at your duty station from one year to the next, you are protected at your current rate as long as you remain at that station and your dependency status does not change. However, when you PCS, you receive the current BAH rate for your new location, not a protected rate. This means you should always base your housing budget on the current published BAH rate for your gaining installation, not on assumptions about future increases.

For military families who are keeping their El Paso home as a rental while buying at a new station, the BAH calculation becomes even more important. You need your new BAH to cover your new mortgage payment, and you need the rental income from your El Paso property to cover that mortgage payment plus expenses. If the numbers work, you are effectively using the military's housing allowance to fund two properties simultaneously, building wealth at both locations. This is the strategy that many financially successful military families use to accumulate real estate over the course of a 20-year career. By the time they retire, they may own two, three, or even four properties that generate passive income and provide long-term financial security.

The Servicemembers Civil Relief Act provides a broad range of legal protections for active duty military members, and several of these protections are directly relevant to housing and real estate during a PCS. Understanding your SCRA rights can save you money, protect you from unfair treatment, and give you leverage in negotiations with lenders, landlords, and other parties. These protections apply to all branches of service and cover the entire period of active duty plus, in some cases, a period after separation.

The most well-known SCRA protection is the interest rate cap. If you took out a mortgage before entering active duty, the SCRA limits the interest rate to 6 percent for the duration of your military service. This applies to the mortgage on your El Paso home if the loan was originated before your current period of active duty service. To invoke this protection, you must provide your lender with a written request along with a copy of your military orders. The lender is required by law to reduce your rate and refund any excess interest charged. This can lower your monthly payment by hundreds of dollars and is especially valuable if you are keeping the home as a rental during your PCS.

The SCRA also provides protection against foreclosure. A lender cannot foreclose on your home during your period of military service and for one year after without first obtaining a court order. The court will consider whether your military service materially affects your ability to meet the mortgage obligation. This protection is critical for service members who fall behind on payments during a PCS transition, when expenses are high and income may be disrupted. If you are facing mortgage difficulties during a PCS, understanding your options for avoiding foreclosure is essential to protecting your home and your VA loan entitlement.

Another important SCRA provision allows you to terminate a residential lease early without penalty if you receive PCS orders. If you are renting at your current location and receive orders to a new duty station, you can break your lease by providing written notice and a copy of your orders to your landlord. The lease terminates 30 days after the next rent payment is due following your notice. This protection ensures that you are not stuck paying rent on a property you can no longer occupy due to military orders. It applies to leases signed before or during your military service.

The SCRA also provides protections related to property taxes. If you are stationed in a state other than your state of legal residence, the SCRA prevents the state where you are stationed from taxing your military income or imposing personal property taxes on your belongings. For El Paso service members whose home of record is in another state, this means Texas cannot tax your military income, although Texas has no state income tax anyway. However, property taxes on real estate you own in Texas are still owed regardless of where you are stationed. If you own property in El Paso and PCS to another state, you are still responsible for paying your El Paso property taxes on time to avoid penalties and potential tax foreclosure proceedings.

Your VA loan benefit does not expire when you leave the military. Whether you retire after 20 or more years of service or separate after a single enlistment, your VA loan eligibility remains intact for the rest of your life as long as you received an honorable or general discharge. This is one of the most important facts for transitioning service members to understand. Many veterans assume their VA loan benefit was a one-time use during active duty, but in reality, it is a lifetime benefit that can be used repeatedly. For veterans settling in El Paso after retirement from Fort Bliss, the VA loan provides an exceptional path to homeownership with no down payment and no PMI.

Military retirement moving benefits allow you one final government-funded move to your home of selection. If you choose to retire in El Paso, the military will move your household goods from your last duty station to your new home. This move must be initiated within one year of your retirement date, although extensions are available through your transportation office. The weight allowances and services are the same as a standard PCS move. If you are retiring and plan to purchase a home in El Paso using your VA loan, you can coordinate the timing of your home purchase with your retirement move to minimize temporary housing costs and storage fees.

Veterans who separated from the military years ago and never used their VA loan benefit are still fully eligible. There is no time limit on using your VA loan for the first time. If you served on active duty for at least 90 consecutive days during wartime or 181 days during peacetime, or if you completed six years in the National Guard or Reserves, you likely qualify. Many veterans in El Paso who served at Fort Bliss decades ago are surprised to learn they can still use this benefit to purchase a home, refinance an existing mortgage, or even build a new home.

For veterans who already own a home with a conventional mortgage, the VA Interest Rate Reduction Refinance Loan, known as the IRRRL or VA Streamline Refinance, allows you to refinance into a VA loan with minimal paperwork and no appraisal requirement. If you currently have a VA loan, the IRRRL can lower your interest rate quickly and with very low closing costs. For veterans with conventional loans, a VA Cash-Out Refinance allows you to refinance up to 100 percent of your home's value, potentially pulling out equity for home improvements, debt consolidation, or other financial needs. These refinancing options are available regardless of when you left the military.

If you are a veteran dealing with financial hardship after separation, the VA offers several programs to help. The VA's loan servicing team can work with you on forbearance, repayment plans, and loan modifications if you are struggling to make your mortgage payments. Veterans who are unable to make their mortgage payments should contact the VA at 1-877-827-3702 before missing a payment. Early intervention gives you the most options and the best chance of keeping your home. If selling becomes necessary, understanding how to sell your El Paso house quickly can help you avoid foreclosure and protect your VA loan entitlement for future use.

After working with hundreds of military families in El Paso navigating PCS moves, we have seen the same costly mistakes repeated over and over. Avoiding these pitfalls can save you thousands of dollars and prevent serious damage to your credit and your VA loan entitlement. Here are the most common mistakes and how to avoid them.

The best way to avoid these mistakes is to start planning early, work with professionals who understand military relocations, and make decisions based on numbers rather than emotions. The Fort Bliss Army Community Service center offers free financial counseling and relocation planning assistance. Take advantage of these resources before your PCS, not after problems arise.