veteran home loan relocation

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Relocation and Your Veteran Home Loan: What You Need to Know

Military members often must relocate for a variety of reasons, including a permanent change of station, deployment, a promotion, or to receive specialized training. If you think relocation may be in the cards for you in the near future, you may be wondering what will happen to your veteran home loan. Here’s what you need to know. 

Options for VA Borrowers that Have to Relocate

When a veteran with a VA (Veterans Affairs) home loan has to relocate, several options are available regarding the property and the loan. The specific path a veteran might choose depends on their circumstances, future housing needs, and financial situation. Here are some common scenarios:


Renting Out Your Property

Veterans may choose to rent out their home financed with a VA loan. The Department of Veterans Affairs allows this, although the original loan typically requires the borrower to occupy the home as their primary residence for a certain period. 

If a veteran has met this occupancy requirement and then needs to relocate, renting out the home is a viable option. In this case, it’s important to inform the lender of the change in occupancy status.


Selling Your Home

Selling the property is a straightforward way to deal with relocation. After selling the home, the proceeds from the sale would typically be used to pay off the VA loan balance. 

If the sale price covers the loan balance, the veteran can use their VA loan benefit again for another purchase in the future. If the sale price does not cover the outstanding balance, the veteran may need to cover the difference.



If a veteran decides to keep the home, perhaps as a rental property, they might consider refinancing their VA loan into a conventional mortgage. This option could free up their VA loan eligibility to purchase another home with no down payment using the VA loan program.


Purchasing Another Home with a VA Loan

Veterans looking to purchase another home after relocation can potentially use their VA loan benefit again. The VA allows veterans to restore their entitlement and use their VA loan benefit for another purchase, provided the original loan is paid off. 

Additionally, for veterans with sufficient remaining entitlement, it may be possible to purchase another home with a VA loan without first selling the original property. This means they may have more than one VA loan at a time. Your eligibility for another VA loan depends on a variety of factors including your remaining VA loan entitlement and your lender’s policies.



VA loans may be assumable, meaning another individual can take over the loan payments and terms. This can be an attractive option for a buyer if the loan’s interest rate is below current market rates. 

If you go this route, it’s important to work with your lender to ensure the process is handled correctly. You may need to request a release of liability to ensure you are not financially responsible if the new borrower defaults on the loan.


Get More Information

Have questions about relocation and your veteran home loan? We’d be more than happy to assist you! Call today to get in touch with a VA mortgage expert.