What does "Permanent Change of Station (PCS) orders" mean?

Definition

Permanent Change of Station, or PCS, orders are official directives for military personnel to relocate to a new duty station. These orders often come with specific guidelines and can impact a home loan.

PCS Orders in Home Buying

When receiving PCS orders, service members may need to buy or sell a home quickly. This can impact the mortgage process, as timing becomes crucial. In simple terms, PCS orders mean a new job location, which may require securing a mortgage on short notice. Example: A military family moves from Texas to Virginia and needs to sell their current home while purchasing a new one. It's not just about moving costs; the focus is on aligning home financing with relocation needs. A common misconception is that PCS orders guarantee loan approval; they don't. Each mortgage application is assessed individually.

People Want To Know

What are permanent change of station orders?

Permanent Change of Station (PCS) orders are official directives for military personnel to relocate to a new duty station. These orders dictate the timing and location of the move and can affect a service member's home loan eligibility, particularly regarding benefits like the VA loan and the ability to use certain financing options during the transition.

Which of the following may not be covered for a permanent change of station?

Closing costs and certain fees associated with the relocation may not be covered under Permanent Change of Station (PCS) orders. Expenses such as home inspection fees, appraisal costs, and some moving expenses are typically the responsibility of the service member. Always review the specific guidelines outlined in your PCS orders for details on what is covered.

What could result from a permanent change of station?

A Permanent Change of Station (PCS) can result in the need to sell or rent out your home, impacting your mortgage terms. It may also affect your eligibility for certain loan benefits, as lenders require proof of relocation and potential changes in income. Additionally, you might face a timeline for selling your home to avoid penalties associated with military loans.

Did Congress really pass a mortgage relief program?

Yes, Congress passed a mortgage relief program in response to the COVID-19 pandemic. The program included provisions to assist homeowners facing financial hardship, such as forbearance options and loan modifications. It aimed to prevent foreclosures and provide support to those affected by the economic impact of the pandemic.

Flip the Script - Master mortgage objections

More From The Mortgage Glossary

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Prepayment penalty

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