PCS Orders and No Equity? What VA Homeowners Need to Know Before They Move
By Krishna Perkins
Broker, Maverick Homes and Neighborhoods
Military life comes with unique challenges—and one of the biggest is being told it’s time to move when your home hasn’t caught up with the market.
Recently, I heard from a family stationed in San Antonio who used a VA loan to buy a home in late 2022. They’re now facing Permanent Change of Station (PCS) orders and have to sell—but there’s a problem. Home prices in their neighborhood have dropped, builders are undercutting the resale market, and incentives like rate buy-downs and closing cost coverage are making it hard to compete.
So, what do you do if you owe more than your home is worth—and the military says it’s time to go?
Common Option: Rent It Out?
For many, the first instinct is to rent out the home. But in this case (and many like it), the rent wouldn’t even cover the monthly mortgage payment. That’s a tough pill to swallow, especially for long-distance landlords who would have to pay out-of-pocket every month.
Can Someone Assume Your Loan?
VA loans are assumable, which can be a great option when interest rates are low. But for this family, their rate was 6.5%—not ideal in today’s market, where builders are buying rates down to 4.99% or better. So again, it’s not competitive.
A Better (But Lesser-Known) Option: VA Compromise Sale
This is the solution I ultimately recommended. A VA Compromise Sale is essentially a VA-backed short sale available to veterans and active-duty personnel who need to sell but owe more than their home is worth.
Here’s how it works:
- The VA steps in and pays the difference between the sale price and what you owe.
- You must have a hardship—like PCS orders, which count.
- You don’t have to be behind on payments to qualify.
- The catch: you’ll need to repay the VA in order to restore your full loan entitlement later.
The Bottom Line
This isn’t the news most military families want to hear—but it’s better to face it early. The sooner we explore your options, the more flexibility you’ll have.
If you’ve received PCS orders and you’re worried about being “stuck,” don’t wait. Let’s walk through your numbers together. No pressure—just answers.
📞 Call or text: 210-260-6617
🌐 Visit: www.homevaluetx.net