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PCSgo Connect / PCS Toolkit / The VA Loan

The VA loan, explained for
the move you are making.

How it works, who qualifies, what it costs, how assumable loans hand you someone else's rate, and the process step by step. Every calculator runs against the official 2026 BAH for your next station.

Your destination

Pick a station above

BAH, home prices and the loan limit for that station appear here, and every calculator adjusts.
VA Loan 101

A loan from a lender, with the VA standing behind you

The VA does not lend you the money. A bank or mortgage lender does. What the VA adds is a guaranty: a promise to the lender that covers part of the loan if things go wrong. That promise is what lets lenders drop the down payment and the monthly mortgage insurance that other buyers pay. It is an earned benefit, and it is reusable.

$0Down payment requiredWhen the price is not above the appraised value. You can still put money down to lower the payment and the funding fee.
$0Monthly mortgage insuranceNo PMI and no MIP. On a typical loan that is a few hundred dollars a month that stays in your pocket.
25%Guaranty behind your loanThe share of the loan the VA stands behind with full entitlement. That is the cushion lenders are lending against.
∞Times you can use itSell and pay off, or have a veteran buyer substitute entitlement, and the benefit comes back for the next station.
YouEarned eligibility. Bring a Certificate of Eligibility, income and credit a lender can underwrite.
The lenderSets the rate, approves the loan, funds it and services it. Shop more than one.
The VAGuarantees part of the loan to the lender, sets the rules, appraises the home and charges the one-time funding fee.
Why this matters at a PCS: you can buy with no savings tied up in a down payment, keep the home as a rental at your next station if you choose, and the house still has to pass a VA appraisal that checks it is safe, sound and sanitary before you are on the hook.

Benefits and rules: VA purchase loan, va.gov. The guaranty percentage and entitlement math are in the Eligibility tab.

VA against the other two

The three loans most service members compare. Program rules only; your lender's overlays and your credit set the final terms.

VAFHAConventional
Minimum down0%3.5%3% to 5% typical
Monthly mortgage insuranceNoneYes, annual MIP; for the life of the loan with less than 10% downPMI until about 20% equity
One-time feeFunding fee, 2.15% first use with less than 5% down, financeable, waived for many disabled veteransUpfront MIP, 1.75%None
Who can use itEligible service members, veterans, some surviving spousesAnyone who qualifiesAnyone who qualifies
Assumable by a buyerYes, with servicer approvalYes, with approvalRarely
OccupancyYou live in itYou live in itPrimary, second home or investment
AppraisalVA appraisal with Minimum Property RequirementsFHA appraisal with its own property standardsStandard appraisal

VA: va.gov funding fee page, effective April 7, 2023. FHA: HUD mortgage insurance premium schedule. Conventional: Fannie Mae and Freddie Mac program guides. Lender overlays vary.

What it can buy, and the one rule

The one rule: you live in it. The VA loan is for a home you occupy, generally within 60 days of closing. A spouse or dependent child can satisfy occupancy while you are deployed, and the home can become a rental later when orders move you. Buying a pure investment property with a VA loan is not allowed.
Three ways the benefit comes back. Sell and pay the loan off and entitlement restores. Keep the home and use remaining entitlement at the next station. Or let a veteran buyer assume the loan and substitute their own entitlement, which frees yours entirely.

Six things people get wrong

Tap a card to turn it over.

Eligibility

Do you qualify? Pick your situation

Eligibility is about service, not credit. These are the VA's minimums, straight from va.gov. A discharge for a service-connected disability waives the day counts for veterans.

Your Certificate of Eligibility

The COE is the document that proves to a lender you qualify and shows how much entitlement you have. Three ways to get it:

Through your lender

Most lenders pull it in minutes from the VA's system during pre-approval. Fastest route, and the one most buyers use.

Online at va.gov

Sign in and request it yourself. Good to do early so a surprise in your record does not surface the week you find a house. How to request it

By mail

VA Form 26-1880 with your proof of service. Slowest, but it works when the online record needs correcting.

Still serving? You will need a statement of service signed by your command: name, SSN, date of birth, entry date, time lost and the name of the command. Ask for it before you start house hunting.

Entitlement, in plain words

Entitlement is how much the VA will guarantee for you. With full entitlement there is no VA loan limit at all; the lender decides how much you can borrow. Entitlement becomes partial when you still have a VA loan open, and then the county conforming loan limit comes into play.

Maximum guaranty here (25% of the limit)
$0
Entitlement already used
$0
Guaranty still available
$0
No limit
Borrow with $0 down
$0
Down payment at the price in the Costs tab

Full entitlement: no VA loan limit (Blue Water Navy Vietnam Veterans Act of 2019). Partial entitlement: lenders generally require the guaranty plus your down payment to equal 25% of the loan, with the guaranty capped at 25% of the county conforming loan limit. Limit figures: FHFA 2026. Your lender and the COE are the final word.

Costs & calculators

Would the payment fit your BAH?

Put in a rate from your lender and the home price you are weighing. The payment lands next to the official 2026 BAH for the station and rank you picked above. Arithmetic only; your lender's quote is the real number.

$0
Estimated monthly payment
$0
Your BAH
Payment
Pick a station above to compare against your official BAH.
$0Principal + interest
$0Taxes, insurance, HOA
$0Loan amount incl. fee
$0Left over after the payment

BAH: DTMO 2026 rates, by military housing area. Taxes and insurance differ by county and carrier; ask your agent for a real estimate on a specific home.

The funding fee, worked out

The one cost unique to a VA loan. One time, a percentage of the loan, and it can be financed. Many disabled veterans pay nothing.

$8,600
Funding fee
2.15%
Rate applied
$0
Added per month if financed
Purchase, down paymentFirst useAfter first use
Less than 5%2.15%3.3%
5% or more1.5%1.5%
10% or more1.25%1.25%
IRRRL (streamline refinance)0.5%
Loan assumption0.5%

Rates effective April 7, 2023, unchanged for 2026: VA funding fee and closing costs, va.gov. Exempt: receiving or eligible for VA disability compensation, surviving spouses receiving DIC, pre-discharge claims with a proposed rating, and active-duty Purple Heart recipients.

Closing costs: who pays what

The VA limits what a veteran can be charged and lets the seller pick up a lot. What you may pay, per va.gov:

Loan origination feeLender fee; VA caps the flat fee at 1% of the loan
VA appraisalSet by the VA per state, paid up front
Credit report, title insurance, recording feeYes
Hazard insurance and property taxesPrepaid at closing
Discount pointsOptional, to buy the rate down
Funding feeYes, unless exempt; can be financed
The seller can carry a lot of this. Sellers may pay all of your normal closing costs, plus concessions worth up to 4% of the loan: the funding fee, prepaid taxes and insurance, even paying off your debt to help you qualify. Negotiating that is your agent's job, and it is where a VA offer is often stronger than it looks.
Things a veteran does not pay on a VA loan: attorney fees charged by the lender, lender inspection fees, settlement or escrow fees, and other lender overhead beyond the 1% flat fee. If a fee sheet shows them, ask.

Allowable and non-allowable fees: VA Lenders Handbook (Pamphlet 26-7), chapter 8. Seller concessions: same chapter, 4% limit.

Assumable VA loans

Take over someone else's rate, legally

Every VA loan is assumable: with the loan servicer's approval, a buyer steps into the seller's existing loan, keeping its rate, its balance and its remaining term. Around military bases that matters, because many homes carry VA loans from years when rates were far lower than today. The loan does not care who the new owner is, only that they qualify.

1
Find a home with a VA loan on it

Listings rarely advertise it. Your Military Relocation Specialist checks the recorded deed of trust and asks the listing agent for the rate, balance and servicer.

2
Cover the gap

Price minus loan balance is the seller's equity, and you pay it: cash, a second loan, or a lower price. The gap decides whether a deal works.

3
Qualify with the servicer

The current loan holder underwrites you for credit and income, like a new loan but on their timeline. Expect 45 to 90 days; some are faster.

4
Close, with a 0.5% fee

The funding fee on an assumption is 0.5% of the balance instead of 2.15% on a new loan. The seller gets a release of liability; a veteran buyer can substitute entitlement.

Who can assume one? Anyone the servicer approves, military or not. But only a veteran buyer who substitutes their own entitlement frees the seller's. If a civilian assumes, the seller's entitlement stays tied up in that loan until it is paid off, which is why sellers often prefer a veteran buyer or ask for a price that reflects it.

38 U.S.C. 3714 (assumption and release of liability), 38 U.S.C. 3729 (funding fee), VA Lenders Handbook chapter 5. The servicer's terms govern each loan.

Assume it or borrow new: run the numbers

Set the seller's loan and today's rate from your lender. The home price carries over from the Costs tab.

Assume the seller's loan
$0
Principal and interest at 3%, 26 years left. Fee 0.5% of balance: $0.
New VA loan, $0 down
$0
Principal and interest at 6.5%, 30 years. Fee 2.15% first use: $0.
$0
Saved per month by assuming
$0
Over 5 years
$0
Equity gap to cover
1 yr10 yrs

Arithmetic on the figures you set. The assumed payment keeps the seller's amortization schedule. Taxes and insurance are the same either way and are excluded from the comparison. Not a quote.

How a Military Relocation Specialist earns their keep on an assumption

Lenders typically do not handle assumptions; the servicer of the existing loan does, and nobody is paid to make it easy. This is where the agent's work is:

Finding them

Scanning listings near the station for homes bought with VA loans in low-rate years, confirming rate and balance with the listing side before you fall for the kitchen.

Structuring the gap

Price, equity, and how to bridge it: cash, a second lien, seller flexibility. Then checking the all-in monthly against your BAH, not just the headline rate.

Driving the servicer

Assumption desks move slowly. The agent keeps the file moving, keeps the seller patient, and times your report date and lodging around a longer close.

Protecting both sides

Release of liability for the seller, substitution of entitlement when you are a veteran, and a contract that says what happens if the servicer says no.

The process

From Certificate of Eligibility to keys, and who does what

Seven steps. Tap each one to see your part, your agent's part and the lender's part. A typical purchase runs 30 to 45 days from accepted offer to closing; an assumption runs longer.

Questions

What people ask before they call

Can I buy at my next station before I report?

Yes, and many do. Lenders can underwrite with your orders as proof of the upcoming assignment, and the VA accepts occupancy within a reasonable time after closing, generally 60 days, with exceptions for a PCS. Your agent coordinates showings around a house-hunting trip or by video.

Does BAH count as income for the loan?

Yes. Lenders count BAH and BAS as income, and because they are not taxed some lenders gross them up. Your lender confirms how they treat each allowance.

What is the debt-to-income limit?

The VA uses 41% as a guideline rather than a hard cap, paired with a residual income test: the money left over each month after housing and debts, by region and household size. Strong residual income can carry a higher ratio.

What happens at the VA appraisal?

A VA-assigned appraiser values the home and checks the Minimum Property Requirements: safe, structurally sound and sanitary. If the value comes in low, the Tidewater process gives your agent a chance to submit comparable sales before the Notice of Value is issued, and the VA escape clause lets you walk away with your earnest money if the value still falls short.

Can I have two VA loans at the same time?

Yes, with remaining entitlement. Service members who keep a home as a rental at one station and buy at the next do this. The Entitlement calculator in the Eligibility tab shows how the county limit frames the second loan.

Can I use the VA loan on a duplex or fourplex?

Yes, up to four units, as long as you live in one. Rental income from the other units can help you qualify, within your lender's rules.

Is a VA loan slower to close?

Not materially. The VA appraisal can take a bit longer in busy markets, but overall timelines are similar to other loans. Having your COE and documents ready before you write an offer is what keeps a file moving.

Who pays the agent on a VA purchase?

Agent compensation is negotiable and is written into the purchase agreement. Sellers routinely pay buyer-agent compensation on VA purchases, and the VA now allows a veteran to pay reasonable buyer-broker fees as well. Ask your agent to walk you through it before you sign anything.

What if I have a disability rating?

With a service-connected rating you are exempt from the funding fee, which on a $400,000 first-use loan is $8,600 you do not pay. Some states also offer property tax relief for disabled veterans; the station guides note the ones that are verified.

Where do I get a real rate?

From a lender, and ideally two. The station guides name a Preferred Lending Partner where one covers that base, and the form below reaches a Military Relocation Specialist who can introduce you. va.gov publishes the rules and the exemptions.

PCSgo Connect

Want real numbers for your move?

A Military Relocation Specialist at your gaining station can tell you what a VA payment buys there and find the homes with assumable loans. A VA loan specialist runs your actual rate. Free, no obligation, no call center.

  • Your BAH against real homes and rents at the station
  • Assumable VA loans near the base, found and verified
  • A pre-approval before the housing window opens