Got PCS Orders? How to Use Your VA Loan to Buy a Home in New Jersey

Orders show up, and the clock starts. A report date. Movers. School. Everything at once.

Buying a home in the middle of that can feel like too much. As a military spouse and a former Coast Guard ombudsman, I know that feeling. So let me make the home loan part simple.

The short answer: The VA loan lets many service members, veterans and eligible spouses buy a home with no down payment and no monthly mortgage insurance, as long as the price doesn't exceed the appraised value. You'll need a Certificate of Eligibility and a lender who knows VA loans. Here's what to know before you tour a single house.

What the VA loan gives you

• No down payment. Many buyers pay nothing up front. You can also put money down if you want to.
• No PMI or mortgage insurance premium. That's a real monthly saving.
• No set loan limit with full entitlement. The VA says you don't have a loan limit if you have full entitlement, as long as you can afford the loan and the appraisal supports the price. Lenders still look at your credit, income and debts.
• No prepayment penalty. You can pay it off early without a fee.
• You can use it again. The VA says you can reuse the benefit if you sell or refinance.

The one fee to plan for

The VA funding fee is a one-time fee, based on the loan amount. For a purchase loan, as of the VA's current page:

Many veterans with a service-connected disability rating are exempt, and so are some surviving spouses and Purple Heart recipients. You can finance the funding fee. Other closing costs must be paid at closing.

Who pays closing costs

Buyer and seller negotiate. The VA says there's no limit on seller credits toward your closing costs. Other seller concessions are capped at 4% of the home's reasonable value. In a competitive town, a smart offer matters as much as the loan.

The rule that matters most with PCS orders: you have to live there

A VA loan is for your primary home. Most lenders expect you to move in within about 60 days of closing. If your orders keep you from moving in right away, there are ways to handle it, such as a spouse occupying the home, and your lender will want a copy of your PCS orders. The rules for this are detailed, so ask your lender how they apply them to you before you write an offer.

A New Jersey perk worth knowing

New Jersey offers a $250 yearly property tax deduction for qualified veterans, and a full property tax exemption on a primary home for certain veterans who are 100% permanently and totally disabled. You apply through your town's tax assessor. Ask the assessor for the forms and deadlines.

Your checklist when orders arrive

1. Get your Certificate of Eligibility.
2. Talk to a VA-experienced lender and get pre-approved.
3. Ask about the move-in rule and your PCS dates.
4. Plan for the funding fee unless you're exempt.
5. Call me before you tour. We'll build a plan around your report date.

Quick answers

Can I buy a home with no money down in New Jersey? Yes, with a VA loan, if the price doesn't exceed the appraised value and you qualify with the lender.

Is there a loan limit? With full entitlement, the VA says there's no set limit. Your lender still has to approve the amount.

Can I buy a home before I arrive? It depends on your lender, your orders and your timeline. Talk to me and your lender early.

Do I need mortgage insurance? No PMI or FHA-style mortgage insurance on a VA loan. There may be a one-time funding fee.

I'm not a lender, and this isn't a loan offer. Ask a lender about your own situation. If you're coming to Monmouth, Middlesex or Ocean County, I'd love to help.

We live here. We work here. We serve here. Let's talk real estate. Call or text 609.469.4121 / 949.230.5508 or email melina@melinabradley.com.

About the author: I'm Melina Bradley, an Atlantic Highlands resident, a military spouse and an active, award-winning Realtor with the Melina Bradley Real Estate Team at Keller Williams Realty West Monmouth. We serve Monmouth, Middlesex and Ocean Counties, including Atlantic Highlands, Colts Neck, Hazlet, Highlands, Holmdel, Keyport, Manalapan, Marlboro, Middletown, Millstone, Old Bridge, Red Bank, Shrewsbury and Monroe.

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Sources: VA, funding fee and closing costs, VA, purchase loan, VA, loan limits and NJ Division of Taxation, veteran property tax benefits.

Equal Housing Opportunity.