Are you a prospective homebuyer trying to decide between an FHA loan and a VA loan? Both of these government-backed mortgage programs offer attractive benefits, especially for first-time buyers. 

However, there are some key differences to understand before determining which one aligns best with your financial situation and homeownership goals.  

In this article, we’ll take an in-depth look at how FHA loans and VA loans stack up in terms of eligibility requirements, down payment minimums, mortgage insurance, interest rates, and more. By the end, you’ll have a clear understanding of the pros and cons of each loan type so you can make an informed decision.

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What is an FHA Loan?

An FHA loan is a mortgage that is insured by the Federal Housing Administration (FHA). The FHA is a government agency within the U.S. Department of Housing and Urban Development (HUD).  Because the FHA insures these loans, lenders are able to offer more favorable terms to borrowers, such as low down payment requirements and relaxed credit standards.

FHA loans are popular among first-time homebuyers as well as those with less-than-perfect credit or limited funds for a down payment. To qualify for an FHA loan, you typically need:

• A credit score of at least 500-580 (depending on down payment)
• Proof of steady income and employment 
• Debt-to-income ratio below 43%
• The home must be your primary residence
• The home must meet FHA property standards and loan limits

One potential drawback of FHA loans is that borrowers are required to pay for mortgage insurance. This includes an upfront premium of 1.75% of the loan amount, plus annual premiums for the life of the loan (unless you put down 10% or more).

What is a VA Loan? 

VA loans are mortgages guaranteed by the U.S. Department of Veterans Affairs (VA). They are available to eligible active-duty service members, veterans, and surviving spouses.

The VA loan program was created in 1944 to help returning service members purchase homes with little or no money down. Today, it remains one of the best mortgage options for those who have served our country. The main benefits of VA loans include:

• No down payment required in most cases
• No private mortgage insurance (PMI)
• Competitive interest rates 
• Relaxed credit requirements compared to conventional loans
• No maximum loan amount (only limited by what you can afford)

To be eligible for a VA loan, you must meet the minimum service requirements, which vary depending on when you served. You’ll also need to obtain a Certificate of Eligibility (COE) from the VA to prove to lenders that you qualify for the program.

While VA loans don’t require a down payment or monthly mortgage insurance, they do have a one-time funding fee. The amount of the fee ranges from 1.4% to 3.6% of the loan, based on your service history, loan amount, and down payment (if any). However, some borrowers, such as those with service-connected disabilities, are exempt from paying the VA funding fee.

Key Differences Between FHA and VA Loans

Now that we’ve covered the basics of how FHA and VA loans work, let’s dive into the key differences between them:

Eligibility 

The main distinguishing factor between FHA and VA loans is who can qualify for them. FHA loans are open to any borrower who meets the credit, income, and down payment requirements – regardless of military background. VA loans, on the other hand, are exclusively for eligible military borrowers as described above.

Down Payment

Another major difference between these two loan programs relates to down payment requirements. FHA loans require a minimum down payment of 3.5% for borrowers with a credit score of 580 or higher. If your score is between 500-579, you’ll need to put down at least 10%.  

With a VA loan, you can finance up to 100% of the home’s value in most cases, meaning no down payment is needed. This is a huge advantage for borrowers who don’t have a lot of savings on hand.

Mortgage Insurance 

As mentioned, FHA loans require both an upfront and annual mortgage insurance premium (MIP). The upfront MIP is 1.75% of the loan amount and can be rolled into the mortgage. 

The annual MIP ranges from 0.45% to 1.05%, depending on loan term and amount. The MIP usually remains for the life of the loan, unless you put down 10% or more.

VA loans have no private mortgage insurance requirement so you can save money on your mortgage this way. However, there is a one-time VA funding fee that serves a similar purpose – to offset losses and keep the program running for future generations of military homebuyers. The funding fee can be financed into the loan amount.

Loan Limits

Both FHA and VA loans have limits on the amount you can borrow, which vary by county. For 2024, the FHA loan limit for a single-family home ranges from $498,257 to $1,149,825, depending on the county. 

VA loan limits were eliminated for most borrowers in 2020. However, they still apply to veterans with remaining VA entitlement who have one or more active VA loans, or who have defaulted on a prior VA loan. In these cases, the standard VA loan limit is $726,200 for most counties in 2023.

Interest Rates

Interest rates on government-backed loans like FHA and VA tend to be lower than conventional loans, since part of the risk is removed for lenders. Between FHA and VA, rates are typically a bit lower for VA loans, but the difference is usually small.

As with any loan, your individual interest rate will depend on multiple factors, including your credit score, debt-to-income ratio, loan-to-value ratio, loan size and type, and market conditions. Shopping around with multiple lenders can help you find the most competitive rate.

The Bottom Line

So, which loan option is right for you – FHA or VA? Ultimately, the best mortgage for your situation will depend on your unique eligibility, financial profile, and home buying goals.

If you have served in the military and can qualify for a VA loan, it’s usually the better choice. A VA loan’s main advantages are the zero down payment option, lack of mortgage insurance, and slightly lower average rates compared to FHA loans.  These benefits can add up to substantial savings over the life of your loan.

However, an FHA loan can still be an excellent option for borrowers with little cash on hand for a down payment and/or a lower credit score. And if you don’t have military experience, it may be your only choice between the two programs.

Of course, FHA and VA loans aren’t your only options. You may also want to consider a conventional loan, especially if you have good credit and can afford a larger down payment. By carefully comparing loan offers from several lenders, you’ll be in the best position to choose the right mortgage product for your needs.

No matter which type of loan you choose, becoming a homeowner is an exciting milestone. Taking the time to understand your options and get your finances in order beforehand will help set you up for success. Here’s to finding the perfect mortgage – and home – for you and your family.

Ask any financial advisor about the most powerful mortgage options for active service members, as well as veterans. They will point out the VA loan program as the best option.

Quite simply, a VA home loan has multiple advantages over a conventional loan, and millions of veterans have benefited from it. 

Here, we discuss what is a VA home loan and how can you apply for it.

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What is a VA Home Loan? 

A VA loan is backed by the U.S. Department of Veteran Affairs (VA). The origin of the loan program can be traced back to the 1944 GI Bill of Rights. It was signed into law to help veterans enter civilian life after World War II. Since then, the department has backed over 24 million VA home loans.

The purpose of a VA home loan is to make homeownership easier for those who have served. A VA loan has multiple advantages that make it the safest loan option on the market. Here are a few of them.

• Probably, the biggest advantage of a VA loan is that it allows you to buy a home with a 0% down payment. In comparison, the average home buyer has to make a 6% upfront payment.
• In addition, VA loans do not require you to pay monthly private mortgage insurance (PMI). For conventional loans, borrowers need to pay this amount if they can’t make the necessary downpayment. 
• The average interest rate on VA loans is lower than the market. Not only does this lead to more savings, but it also qualifies veterans for a larger loan amount.
• In general, VA loans have lower credit score requirements than other loans. Likewise, the cutoff for the debt-to-income ratio is more forgiving. This makes it a more flexible option.
• There is a limit on the various fees that the lender can charge as VA loan closing costs. These include attorney fees and mortgage origination fees.
• Borrowers can pay off their VA loan at any point without having to worry about prepayment penalties.

How Does a VA Home Loan Work

Veterans and active service members can use the VA loan for buying, building, or improving a house. The VA does not directly provide the majority of the home loans. Private lenders like mortgage companies, credit unions, or banks backed by the VA provide the loans.

If you have full entitlement, then there are no limits on a VA loan. The lender will know that in case of a default on a loan, the VA will pay them up to 25% of the loan. This allows the lender to recover some of the loan amount, in case of a loan foreclosure.

Coming to the eligibility criteria, you will need a Certificate of Eligibility (COE) to prove your eligibility for the loan. You can submit your service-related documentation and get the certificate from the VA website. 

During processing, the lender requests a VA appraisal of the house to estimate its market value. This report and your credit and income information are evaluated to determine if you can repay the loan.

Here’s a closer look at VA home loan requirements for eligibility.

• Firstly, you need to meet the length-of-service requirements. This is 90 continuous days of active duty for service members. For veterans, the minimum service requirement depends on the service time. Those who have served in the National Guard or Reserve for at least six years are also eligible.
• Surviving spouses of service members who have died on active duty or due to a service-connected disability are eligible, provided they have not re-married before December 16, 2003.
• While the VA has no required credit score limit, you need to meet the minimum standard set by the lenders.
• The property you wish to buy should be your primary residence and meet all the building codes, as well as safety standards.
• If your discharge was other than honorable, or due to bad conduct or dishonorable, you are not eligible.

A big plus of a VA loan is that it is not a one-time benefit. You can use it more than once and it is even possible to have multiple VA loans going at a time. However, the amount you can borrow will be limited by the partial or reduced entitlement you may have.

Understanding the Types of VA Home Loans

The two main types of VA home loans are the VA direct home loan and the VA-backed home loan, For a direct loan, the VA loans the amount directly to you and manages the loan. In a VA-backed home loan, the loan is provided by a private lender, while the VA guarantees a portion of it. 

Listed below are some of the other VA loan options.

VA Renovation Loan

You can use this form of the VA loan to renovate and repair your home. These loans can also supplement a standard VA loan for property purchases. Note, that the renovation should not be for aesthetic purposes. Technically, it should improve the “livability, use, and safety” of your primary residence. 

Native American Direct Loan

The Native American Direct Loan (NADL) is a VA-direct home loan available to Native American Veterans or a Veteran married to a Native American. The loan can be used to buy, build, or improve a primary residence. The NADL offers all the benefits of a typical VA home loan, including zero down payment and reduced closing costs. 

Interest Rate Reduction Refinance Loan (IRRRL)

This is a great option for those already having a VA-backed home loan and looking to reduce their monthly mortgage payments. The loan can help you lower the interest rates on the existing loan or shift to a fixed-rate interest plan. This is not a VA-direct loan and you will have to approach a private bank, or a mortgage company for it. 

Cash-out Refinance Loan

This VA-backed loan option can replace your existing loan with a new one with different conditions.  Commonly, it is used to convert a non-VA loan into a VA-backed loan. Besides, with this loan, you can use your home equity to meet other expenses like paying off debt, paying for school, and more. To be eligible, you need to possess a Certificate of Eligibility and meet the financial standards set by the lender.

How to Apply for a VA Home Loan

Typically, the application process for a VA loan is similar to other loan types. Even so, a clear understanding of the process will help you to make the most of the benefits offered by a VA home loan. 

Here is a quick breakdown of the VA loan application process. 

• The first step is to find out if you are eligible for a VA loan and understand the requirements.
• Next, look around for the right lender approved by the U.S. Department of Veterans Affairs. Picking a lender who deals exclusively in VA loan programs can make the process easier. Shopping around for the right lender is a good way to save money on any mortgage or a VA loan. 
• The lender will go through your credit and financial history before preapproving the loan. Then you can apply for the Certificate of Eligibility (COE). Approved lenders can access this document for preapproval checking.
• Once the loan is pre-approved, you can start hunting for a house. It is best to pick a veteran-friendly real estate agent who can help you get the most benefits from a VA loan. To maximize your savings, pick an American Realty Council (ARC)-affiliated agent to save money from the ARC Realtor Rebate program.
• After a property is finalized, you can make an offer in consultation with the agent and your loan officer. Once the offer gets accepted, it’s time to sign a purchase agreement. Make sure to discuss the VA loan closing costs with your loan officer at this stage. You can also ask the lender for a mortgage rebate.
• With the contract signed, it is time for the VA appraisal to ensure that the property meets the VA minimum property requirements. At the same time, you will need to submit the necessary documents to the lender. After the appraisal is complete, the loan is ready for closing.
• Finally, you will need to sign the closing disclosure documents to complete the legal transfer of the property to you.

Final Thoughts

Without a doubt, a VA loan has some key advantages that make it one of the best options for veterans and service holders. No wonder the volume of VA loans has increased significantly in the last decade.

That said, VA loans come with some closing costs that you have to cover. One of the best ways to offset these costs is to choose the ARC realtor rebate program through an approved real estate agent. Through this program, you can save a considerable amount based on the purchase price. The best part is, that with higher transaction value, the rebate gets larger.

Moreover, while moving to a new home, you can save money through the ARC relocation Replacement USAA Movers Advantage program. The program offers great rebates for your move to the new home. Plus, ARc specializes in assisting veterans and military families with their moves.

Want to learn more? Discover more about our amazing realtor rebate program and maximize your savings.

FAQs

How many times can you use a VA home loan?

There are no limits on the number of times you can use a VA home loan. However, the amount you can borrow without making a downpayment depends on your remaining entitlement.

Why is it called the VA?

It is called a VA loan since the loan program is managed by the Department of Veterans Affairs (VA).

Why is a VA loan better?

A VA loan has multiple advantages including zero down payment and no mortgage insurance requirements. It also offers better flexibility in terms of credit score and debt load, compared to a conventional loan.

How much are closing costs in VA?

The closing costs for VA loans include multiple fees like the origination fee, funding fee, appraisal fee, VA funding fee, etc. The average closing costs can range between 1 to 6 percent of the loan amount.

Buying a home is a huge financial decision, and understanding the different mortgage options available is crucial. 

Two popular choices are VA loans vs conventional loans, each with its own set of pros and cons. In this article, we’ll dive deep into the differences between these two loan types, so you can make an informed decision.

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What Is a VA Loan vs Conventional Loan?

A VA loan is a mortgage loan program backed by the U.S. Department of Veterans Affairs, designed to help active-duty military personnel, veterans, and eligible surviving spouses buy, build, or refinance a home. VA loans have different eligibility requirements than a conventional loan, which is a mortgage that is not insured or guaranteed by the government.

VA Loan

VA loans offer a range of benefits, including no down payment requirement, competitive interest rates, and flexible credit requirements. These loans are available to eligible borrowers who meet the service requirements set by the VA.

Conventional Loan

Conventional loans are not backed by the government and are offered by private lenders. Conventional vs VA loans typically require a higher credit score and a larger down payment, but they also offer more flexibility in terms of loan amounts and property types.

Differences Between VA and Conventional Loans

While both VA and conventional loans serve the same purpose – helping you finance a home purchase – they differ in several key areas. The main points of distinction include:

• Eligibility requirements
• Down payment requirements
• Credit score requirements
• Mortgage insurance
• Funding fees
• Loan limits

This table helps to better outline the key differences between VA loans and conventional loans:

Feature	VA Loans	Conventional Loans
Eligibility	Exclusive to veterans, active-duty service members, and select military spouses.	Available to all borrowers.
Down Payment	No down payment required in most cases.	Down payment can vary, typically 3-20% or more.
Mortgage Insurance	No mortgage insurance required.	Private mortgage insurance (PMI) required with less than 20% down payment.
Loan Limits	Varies by county, but generally generous.	Limits vary by county and are generally higher for conventional loans.
Funding Fee	Required (can be financed into the loan), percentage varies based on various factors, such as the borrower’s military category and whether it’s a first-time use.	Not applicable.
Credit Score Requirements	Generally more flexible, with lower minimum scores accepted.	Typically requires a higher credit score.
Interest Rates	Typically lower compared to conventional loans.	Can vary based on credit score, down payment, and other factors.
Property Requirements	Must meet VA’s Minimum Property Requirements (MPRs).	Appraisal and property requirements can vary, generally less strict than VA.
Loan Types	Mainly for purchasing or refinancing primary residences.	Broad range, including primary residences, second homes, and investment properties.
Foreclosure Avoidance	Strong commitment to assisting borrowers avoid foreclosure.	Less support compared to VA loans.

Mortgage Requirements For Conventional Loans vs VA Loans

When comparing VA and conventional loans, it’s essential to understand the different mortgage requirements for each.

Down Payment

One of the most significant advantages of VA home loans vs conventional loans is that they often allow for little to no down payment. Conventional loans, on the other hand, typically require a down payment of at least 3%, but preferably 20% to avoid private mortgage insurance (PMI).

Credit Score

VA loans tend to have more flexible credit score requirements than conventional loans. While conventional lenders may require a credit score of 620 or higher, VA loans may be available to borrowers with lower scores, depending on their overall financial situation.

Private Mortgage Insurance

With a conventional loan, if you put less than 20% down, you’ll be required to pay private mortgage insurance (PMI). This additional cost can add up quickly over the life of the loan. VA loans, however, do not require PMI, regardless of the down payment amount.

Debt to Income Ratio

Both VA and conventional loans have debt-to-income ratio (DTI) requirements, but the VA’s guidelines are generally more lenient. The maximum DTI for a VA loan is typically around 41%, while conventional lenders may have stricter DTI limits.

Borrower Eligibility

VA loans are only available to eligible active-duty military personnel, veterans, and their spouses. Conventional loans, on the other hand, are available to any borrower who meets the lender’s credit and income requirements.

Property Eligibility

VA loans have specific property eligibility requirements, such as the home must be your primary residence and meet certain minimum property requirements. Conventional loans, while still having some restrictions, are generally more flexible in terms of property types and intended use.

Fees

VA loans come with a funding fee, which is a percentage of the loan amount that helps offset the cost of the VA loan program. Conventional loans may have various fees, such as origination fees and application fees, but they do not have a specific funding fee like VA loans.

Benefits of a VA Loan vs Conventional Loan

VA loans offer several benefits over conventional loans, including:

• No down payment required (in most cases)
• Lower credit score requirements
• No private mortgage insurance (PMI)
• Lower interest rates
• Flexible underwriting guidelines

However, traditional mortgages vs VA loans also have their advantages, such as:

• No eligibility restrictions based on military service
• Fewer property restrictions
• Potentially higher loan limits in some areas

How ARC’s Realtor Rebate Can Help

Regardless of whether you choose a VA loan or a conventional loan, the assistance of a trusted real estate professional can make a significant difference in your home-buying journey. At ARC, we understand the intricacies of both loan types and are here to help you navigate the process seamlessly.

Our unique Realtor Rebate program is designed to put thousands of dollars back in your pocket at closing and help you save money on your mortgage. 

When you work with one of our experienced agents, you’ll receive a portion of the commission they earn, which can be a game-changer for your finances. This rebate can be used to cover closing costs, make a larger down payment, or even furnish your new home.

But our services go beyond just the rebate. Our dedicated team will work tirelessly to ensure you find the perfect home that meets your needs and budget. We’ll handle all the negotiations, paperwork, and logistics, so you can focus on the excitement of your new chapter.

Whether you’re a first-time homebuyer, you need to sell your house fast for a relocation, or a seasoned investor, our agents have the expertise and local market knowledge to guide you every step of the way. 

We’ll help you understand the differences between VA and conventional loans, and recommend the option that best suits your unique situation.

At ARC, we’re committed to making the home-buying process as smooth and stress-free as possible. With our Realtor Rebate program and dedicated support, you can rest assured that your best interests are always our top priority.

VA Loan Vs Conventional Loan: FAQs

Are VA loans good?

Yes, VA loans are an excellent option for eligible borrowers. They offer competitive interest rates, flexible credit requirements, and the ability to purchase a home with little to no down payment. 

Additionally, VA loans do not require private mortgage insurance, which can save borrowers a significant amount of money over the life of the loan.

Can you use a VA loan for any home?

No, VA loans have specific property eligibility requirements. The property must be your primary residence, and it must meet certain minimum property requirements set by the VA. The VA has limits on the maximum loan amount based on the county where the property is located.

Is it better to go with a VA loan or a conventional loan?

The answer to this question depends on your individual circumstances. If you are eligible for a VA loan and meet the service requirements, it can be a more affordable option due to the lower interest rates, no down payment requirement, and no private mortgage insurance. 

However, if you do not meet the eligibility requirements or prefer more flexibility in terms of property types, a conventional loan may be a better choice.

Can you get a VA loan with bad credit?

While VA loans generally have more flexible credit requirements than conventional loans, having a low credit score can still impact your ability to qualify. 

The VA does not have a strict minimum credit score requirement, but lenders may impose their own credit score minimums. It’s essential to work with a lender who understands the VA loan program and can evaluate your overall financial situation.

Final Thoughts

Choosing between a VA loan vs a conventional loan is a personal decision that depends on your unique circumstances. 

If you are eligible for a VA loan and meet the service requirements, it can be an excellent option, offering competitive interest rates, flexible credit requirements, and the ability to purchase a home with little to no down payment. 

However, if you do not meet the eligibility criteria or prefer more flexibility in terms of property types, a conventional loan may be a better choice. 

The ARC Realtor Rebate Program can help make the process of buying a new home as smooth as possible, enabling you to potentially save thousands of dollars at closing. 

Contact ARC Relocation today for more information about the Realtor Rebate Program, or to help you find a moving company for your upcoming move. 

Relocating is stressful, but it can be even more overwhelming as a military member. Military members and their families who need to relocate can benefit from using a military relocation professional to assist with their move. 

Military relocation professionals better understand the needs and timelines of those in the military, making them the best kind of realtors to use for military families.

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What is a Military Relocation Professional?

A military relocation professional is a certified real estate professional who works with current and prior military service members to find the best housing solutions to suit their needs. Essentially, they are specialized military real estate agents. 

They can help military members help find homes at a new base and help you figure out the world of military real estate. Military relocation specialists are uniquely trained and certified in the military home search process, which is why they are best to use when relocating to the military. 

Benefits of Using a Military Relocation Professional 

There are many benefits of using military relocation specialists. Here are some of the most valuable:

Can Answer Questions Specific to the Military

Military members looking for real estate help will ask different questions than civilians looking to move. Luckily, military relocation professionals can answer military-specific questions regarding relocation. For example, a military relocation professional can answer questions like:

• Does the military pay for relocation?
• Will the military move a spouse after a divorce?
• What are PCS weight limits or what’s the best way to use a DITY calculator?

They can help explain that with a partial-DITY move, the military can reimburse you up to 95 percent of the costs associated with moving until you reach the weight limit. For relocation during a PCS, you can get a dislocation allowance to reimburse some costs.

In-Depth Knowledge of Military Moves

Having a military relocation specialist designation can help you in many ways since they better understand military processes and concerns involved with moving. 

Many military relocation specialists have this in-depth knowledge due to direct experience or research. They can actively explain the military market, broker’s market analysis, military relocation, VA financing for active duty vets, and more.

Have Extensive Knowledge of the Military Market

Unlike civilian real estate, you cannot just visit open houses whenever you feel like a military move. Frequently, military moves happen across the county, and you may need to be placed in temporary housing. 

A military relocation professional can be helpful in this situation, as you need someone who has a lot of knowledge about what is available in the area. They can quickly match your and your family’s needs to what is currently available on the market.

Understanding Military Terminology

Many realtors without military knowledge are not helpful regarding military acronyms and phrases. A military relocation professional will understand terms like BAH (basic housing allowance), LED (leave and earnings statement), and DLA (dislocation allowance). 

Having a realtor who understands these military terms is essential for you to be informed appropriately.

Military Relocation Professional Designation Vs. Certification

You may have noticed that there are MRP designations and certifications. While there is a slight difference between the two, both will get you where you need to be. A military relocation professional designation takes more time and money for the specialist to reach that point. 

It is almost like having a master’s degree instead of a bachelor’s degree. An MRP certification is like any other professional development opportunity. Both designations and certifications will be efficient for you to gain the knowledge and help you need regarding your military move.

How to Find a Military Relocation Professional

There are a few ways to find a qualified military relocation professional:

• Contact ARC Relocation to find quality realtors that specialize in military relocations
• Ask for referrals from friends or family in the military who have recently moved
• Search online listings and profiles specifically for real estate agents specializing in military moves
• Contact your base housing office for recommendations

When looking for a military relocation pro, be sure to ask about their specific experience helping military families move. Having an understanding of military culture and processes will make a big difference.

Military Relocation Professionals: FAQs

How much does a military relocation specialist cost?

A military relocation specialist’s fees are typically the same as a regular real estate agent’s commission. Military specialists do not usually charge extra fees specifically for their military expertise – you just pay their standard real estate commission.

The exact percentage depends on your state and situation. Since they provide specialized services tailored to military moves, their commissions are well worth the investment for most military families.

Can veterans use a military relocation professional too if they are moving after active duty?

Yes, military relocation professionals are able to assist veterans as well. Their knowledge of VA loans, military terminologies, working with bases, and experience with service members applies to veterans too.

So whether you are active duty, retiring soon, or have already separated, a military relocation specialist can help any military member or veteran who is moving to a new home. They understand the unique needs and timelines of military life, even after active service.

Do I have to use a military relocation professional?

No, using a military relocation specialist is completely optional. Some military members prefer to handle the moving process on their own or with a regular real estate agent.

However, specialists have extensive expertise specifically with military relocations that can simplify the process and help avoid any pitfalls unique to PCS moves. Their familiarity with military terminology, base housing, working with the DOD, and other factors can make the move much smoother.

How ARC Supports Military Members

Before it was discontinued, the USAA Movers Advantage Program offered cash rewards for military customers and their families to help them save money during a move. 

The goal of this program was to put money back into your pocket, have a wider variety of real estate agents, and increase your profit. ARC helps support military members by pairing you with a relocation specialist to help make your move easier. 

ARC offers a home buying or selling rebate to anyone buying or selling their homes, not just in the military. They will help you find a realtor or military relocation professional, help plan your move, and provide options for moving companies to move your belongings safely. 

They can help find insured van lines and moving companies that help with various factors like packing, unpacking, moving furniture, disposing of packing materials, providing packing supplies, assembling and disassembling furniture, and transporting your belongings. 

Planning a military move can be complicated. However, using a military relocation professional can be less complicated.

If you are planning on relocating, fill out the form below to claim your real estate rebate, and put $1,000’s of dollars back in your pocket.

You’ve received a permanent change of station or PCS announcement and you need to start planning. This process can go one of two ways

1. It can be incredibly smooth with as few bumps as possible, or
2. It can be highly turbulent with unforeseen errors at every turn.

You don’t want to fall into that second category. 

Planning and preparation are everything for military families going through a PCS, and we’ve helped hundreds of people through this process. Our PCS checklist will walk you through everything to ensure you leave no stone unturned. 

1. The Planning Stage 

The average military family will move as often as once every three years. That does not mean it gets easier each time. It’s important to plan immediately and stay organized between moves to prevent the last minute race to the finish, which is why a PCS checklist is useful. 

• Organize all important essentials 

Organization is key so having important documents like passports, marriage licenses, social security cards, birth certificates, contact information, and housing info in a safe place. 

Consider putting all of this information into a binder so you know exactly where it is when it comes time to start packing. Losing essential travel documents or identification can lead to someone even being left behind during a PCS. 

• Plan out all transportation

It’s never too soon to start thinking about transportation. If your PCS is overseas, you’ll need to figure out what to do with your car. Items like furniture and large appliances will likely require specialized transport as well. 

Keep in mind that the military will pay to move pretty much anything depending on the way it’s factored into your agreement. You could always drive the car if it’s a stateside relocation but you could save wear and tear on it by shipping it if the military will pay for it. 

• See if there are military flight discounts

If you’re flying for your relocation, there are many flights that will offer discounts to military members. 

The key is to look for discounts that apply not only to your flight, but to your luggage as well. You need to keep in mind that transportation timelines will not always fall perfectly in line so you’ll want to bring certain things with you on the flight to ensure you have them when you arrive. 

You’re able to have 1,000 pounds of unaccompanied baggage by air. But again, that doesn’t mean it will arrive with you so be careful when choosing what goes in these bags. 

• Learn about your destination 

Sometimes you get so caught up in the planning and preparation that you forget you’re actually leaving one place and moving to another. The military will often help by providing information about your destination but doing your own research can help as well. 

Consider looking at what the local towns are like, what types of activities there are, and read about the schools if you have kids. 

Look into information about hospitals, child care, and recreation. Doing this can help lessen the burden of a stressful situation. 

2. Securing Housing 

Next on your military PCS checklist is to secure housing. You’re leaving one home and moving into another, which means you’ll have to figure out where you plan to live. In the military, there are a number of options based on your family situation and time of service. Go through this PCS move checklist and make sure to follow these steps. 

• Figure out what kind of housing you want

This may not always be a choice but if you have an option you’ll want to think about it. This should be at the top of your PCS moving checklist.

Private military housing is when you receive a housing allowance and live in a community with other military members. Single military housing usually consists of a barracks-style building where military members live together or in their own room. 

These accommodations do not cost anything for the member but they’re only available to single members with no dependents. 

Buying a home requires the most investment but it could be a good option if you have a family and believe you’ll be at your next assignment for a while. 

ARC Relocation offers a military rebate program that will not only help you find a home in your new location but can give you up to $3,000 towards selling your current home and purchasing a new one. 

• Consider temporary housing  

If you have to sell your current home or move out of a place you’re renting before relocating, you may need to find temporary living quarters.

Being in-between living arrangements is a scary situation and not something a military member should have to deal with. The military will likely pay you for temporary housing as well. 

• Look into the Defense Travel Management Office 

The DTMO exists to help you with your move. They can help explain various costs you’ll run into, the difference between a PPM and a GPM, and how you can make the most of the reimbursement the government provides to you. 

• Get Pre-Qualified for a Mortgage

Keep in mind that a pre-qualification is sometimes required before a real estate agent will even show you a home. Having this done before the move will help you tremendously. 

Use a free credit app like Credit Karma to get an idea of where your credit is and figure out how much money you can put down on a house. These two factors will help determine what kind of house you qualify for. 

3. Packing For The Move 

You have a lot of choices when it comes to the packing and moving stage. A DITY move is when you handle everything yourself and the military basically provides you with a lump sum to do so. 

This is great if you have experience but not if you’ve never done it before. You may end up having to pay out of pocket if you run too high on expenses. Following this military move checklist can help reduce the chances of an unfamiliar situation. 

• Determine what type of military move reimbursement works for you

Depending on your years of service, where you’re relocating to, and your rank, you’ll be able to choose how you want to be compensated for changing your station. 

In the case of a DITY (do it yourself) relocation, the military pays you based on what you have and where you’re going and you’re free to spend the money how you like as long as you get where you need to go. 

A GPM is a government procured move. In this case, you have zero flexibility on when and how you move. But, the upside is the government handles everything for you including packing. 

The downside is that they choose when you pack, move, and they handle all the money so you’re completely at their mercy. 

There are various hybrid options as well. Understanding what all of these moves are will help you choose the option that makes the most sense for you. 

• Planning your baggage

I mentioned previously that you’re allowed up to 1,000 pounds of unaccompanied baggage on a plane. The number increases to 2,000 pounds as a family. 

Make sure you don’t pack your daughter’s favorite stuffed animal in this baggage because it could be a few days before you see it. You want to plan with your arrival in mind. 

• What do you need immediately?
• What do you need tomorrow?
• What do you need next week?
• What do you need next month?
• What do you need next year? 

So on, and so forth…

Think about these questions as you’re packing. If you need it right away, don’t pack it on the plane. If you need it next month, don’t pack it in a bag you plan to check on moving day. 

Even besides air travel, ground travel has weight limits as well. There are overall PCS weight limits you need to abide by depending on your dependents and various other factors. 

4. For The Family 

Traveling can put a strain on the family dynamic and turn an otherwise happy family into a disgruntled mess. 

Try to do everything you can to make the trip fun for your children. If they’ve been through a PCS before, they know what to expect but that doesn’t mean it has to be stressful. 

• Turn the trip into an adventure

If you have young children consider downloading an app or playing car games that make the process more fun for the kids. Find fun hotels to stay in that include activities like indoor pools and arcades. 

• Understand how this can impact child custody

Child custody laws are confusing as they pertain to military relocation. It’s important to understand your rights as the relocating parent or the non-military parent. The SCRA contains a lot of valuable information on this subject. 

5. Settling In 

Once you arrive at your new location you might be feeling exhausted and drained. That’s normal. Don’t expect to unpack everything and have the whole house set up in a few days. 

Take your time and allow yourself to enjoy the experience. Follow these last few steps on your PCS checklist when you arrive in your new home. 

• Do you have a dislocation allowance?

When you’ve reached your destination you might think the military moving benefits are over but that’s not the case. A dislocation allowance or DLA is another reimbursement you can receive that is separate from your PCS allowance. 

This allowance reimburses you for some expenses you encountered during the travel process. These can include food, snacks, drinks, tolls, gas, and car repairs. 

• Reach out to the community 

If you’re a military spouse it can be easy to feel alone sometimes. You might feel like you’re stranded on an island but military communities are some of the easiest places to make friends because everyone is going through the same thing. 

Don’t be afraid to reach out for help and advice, join local activities, and stay in touch with friends from your old assignment. 

What to Pack in Your Suitcase or Car

When preparing for your PCS move, it’s crucial to keep essential items with you rather than sending them with the movers. Here’s what you should consider packing in your suitcase or car:

For your suitcase:

• Important documents (birth certificates, passports, medical records, orders, and school records)
• Several changes of clothes and basic toiletries
• Essential medications and prescriptions
• Laptop, tablet, and chargers
• Basic first aid kit
• Small tool kit for minor emergencies
• Jewelry and other valuables
• If flying overseas, pack a change of clothes in your carry-on in case checked bags are delayed

For your car:

• Emergency roadside kit with jumper cables and basic tools
• Snacks and drinks for the journey
• Basic cleaning supplies
• Air mattresses and bedding for temporary lodging
• Pet supplies if traveling with animals
• Important paperwork and documents
• Basic kitchen items (one pot, pan, and essential utensils)
• Paper products and basic household supplies
• Phone chargers and electronics
• Small lamp and basic tools for initial house setup

Remember to keep these items in a secured, “do not pack” room or in your vehicle before the movers arrive to ensure they don’t accidentally get packed with your household goods.

PCS Checklist: FAQs

How early should I start planning for my PCS?

As soon as you receive your PCS announcement, you should begin planning. Give yourself as much time as possible, even if it’s a year or more in advance. Proper planning and staying organized can help prevent last minute issues.

What are my housing options for a PCS?

You have several options, including private military housing, single military housing (barracks), buying a home, or temporary housing if needed. Consider your situation, timing, and length of stay when deciding. Get pre-qualified for a mortgage if buying.

How much baggage can I take on my military flight?

You can have up to 1,000 lbs of unaccompanied baggage per family member on military flights. Carefully plan what goes in each bag based on necessity and arrival timeframe. Don’t pack immediate necessities in unaccompanied baggage.

What kind of reimbursements are available when I arrive?

You may qualify for a Dislocation Allowance (DLA) to reimburse certain travel expenses like food, gas, repairs, etc. This is separate from your PCS allowance. Save receipts and file for reimbursement.

What’s the difference between a government-procured move (GPM) and a personally-procured move (PPM)?

With a GPM, the military handles everything – they choose the moving company and manage the entire process. With a PPM, you receive a payment based on your rank and handle the move yourself, giving you more flexibility but requiring more work. Many service members choose a hybrid approach, having the government move most items while personally moving valuable or fragile possessions.

How do I protect valuable or sentimental items during a PCS move?

Transport irreplaceable items yourself rather than including them in your household goods shipment. Create a detailed inventory with photos, mark high-value items during the pre-move survey, and consider additional insurance since standard coverage is limited to $6 per pound. Keep valuables in a designated “do not pack” room until the movers finish.

Final Thoughts 

I hope this PCS checklist helps make things a little simpler for you throughout your move. There’s a lot to think about and many things can go wrong along the way. Just remember that your military move doesn’t have to be stressful if you plan ahead.

Good luck! 

Moving can be a daunting task, and it’s often a frequent necessity for military members and their families. Whether you’re relocating due to a change in duty station, deployment, or retirement, finding a reliable and efficient moving company is crucial. 

Military life is marked by its unique challenges, and choosing a moving company that understands and caters to those challenges can make the process significantly smoother. 

This article will explore the five best military moving companies that have proven their mettle in assisting military families during these transitions.

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1. International Van Lines

Pros

• Dedicated military relocation services
• Offers both domestic and international moves
• Provides packing and unpacking services
• GPS tracking for your belongings during transit

Cons

• Limited availability in certain regions

When it comes to serving military members, International Van Lines is one of the best moving companies for the military. They recognize the unique demands of military life and tailor their services to accommodate them. Their military discounts for moving trucks range between 10-15 percent for military members.

Whether you’re moving across the country or overseas, International Van Lines offers comprehensive services that can ease relocation stress. One key feature is the GPS tracking that keeps you informed about the status and location of your belongings throughout the journey.

2. 1-800-PACK RAT

Pros

• Flexible loading and unloading
• Convenient storage options
• Wide service area
• No rush packing

Cons

• Limited customer service hours

1-800-Pack Rat stands out as a solid moving company choice for military members due to its tailored solutions. Military life often involves frequent relocations and uncertain timelines. With the flexibility this company provides, you won’t feel rushed during your move. This is crucial, especially when you’re juggling various responsibilities.

Moreover, their convenient storage options align perfectly with military deployments or temporary duty assignments. Having a reliable storage solution can save you from the hassle of arranging alternative storage during sudden moves.

While their customer service hours might be limited, the company’s focus on flexibility and storage convenience can make up for this drawback. The company offers a 10 percent military discount for all active and retired military members.

3. PODS

Pros

• Convenient portable storage containers
• Flexible loading and unloading timelines
• Local and long-distance moving options
• No pressure with delivery and packing timelines

Cons

• Limited customer support hours
• May not be suitable for larger households

PODS is one of the best moving companies for veterans and active-duty military members. They offer a unique approach to moving that can be particularly beneficial for military families, and their portable storage containers give you the flexibility to load and unload your belongings at your own pace. 

The PODS military discount is up to 30 percent for all active, retired, and veteran military members. This can be especially advantageous for those undergoing frequent moves or uncertain timelines. The convenience of keeping your container on-site or storing it at a PODS facility can simplify the moving process. 

4. U-Pack

Pros

• Pay only for the space you use
• Flexible delivery and pickup options
• Available across the U.S. and parts of Canada
• Military discounts available

Cons

• Limited loading and unloading time

U-Pack offers a unique pricing structure that can be especially attractive for military families looking to manage their budgets effectively. With U-Pack, you pay based on the space you use in the moving trailer or container, which can lead to significant savings. 

This moving company offers discounts for active-duty military members and veterans. Active-duty military personnel can receive $100 off their move, and veterans can receive $50 off.

They also offer military discounts, demonstrating their commitment to serving those who serve the nation. While the loading and unloading time might be more restricted compared to other options, their cost-effectiveness and convenience can offset this limitation.

5. SMARTBOX

Pros

• Portable storage solutions for convenience
• Flexible delivery and pickup options
• Suitable for both local and long-distance moves
• Transparent pricing with no hidden fees

Cons

• Limited availability in certain areas
• Customer service response time may vary

SMARTBOX offers portable storage solutions that can be particularly appealing to military families dealing with frequent relocations. The flexibility to load and unload your belongings at your own pace can alleviate some of the stress associated with moving.

They offer local and long-distance moving options, making them versatile for various situations. SMARTBOX offers a military discount for active-duty military members.

The transparent pricing structure, with no hidden fees, ensures you know exactly what you’re paying for. However, their availability might be limited in certain regions, and the responsiveness of their customer service could vary.

Moving Companies For the Military: FAQs

Can my DLA rate help cover some costs associated with moving?

Yes, a DLA rate can help cover some of the costs associated with a military move when you must relocate due to a change in your service assignment. To apply for DLA, you must submit all necessary documentation and include details about your service assignment change or new duty station. 

How long do military movers take?

Depending on if you have a local or long-distance move, most moving companies for military personnel can take one day for local moves and several days for long-distance moves. International moves can take weeks. 

A military relocation professional can help you find a moving company that will relocate you in a sufficient amount of time and also find the best housing solution to meet your needs.

Are there moving assistance programs available to veterans?

Yes, there are a few moving assistance programs available for veterans. These moving assistance programs include the Special Adaptive Housing Program and the Home Loan Program offered by the VA. 

Final Thoughts

Relocating as a military family comes with its challenges, but choosing the right moving company can significantly alleviate the stress associated with these transitions. 

From specialized military relocation services to flexible pricing options and convenient storage solutions, these moving companies for the military have proven their ability to cater to the unique needs of military life. 

ARC Relocation can help relieve the stress of your military move by planning your move and providing you with a reliable moving company. Contact ARC Relocation today to set up a free consultation call.

Moving from one place to another can be a challenging endeavor, requiring meticulous planning, time, and effort. This challenge becomes even more pronounced when it involves veterans who have unique needs and considerations due to their service to the country. 

Fortunately, there are Veteran Moving Assistance Programs designed to support veterans during the relocation process. In this article, we’ll delve into the details of these programs, exploring who qualifies, how to apply, and the benefits they offer.

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Who Qualifies for Veteran Moving Assistance Programs?

Veteran Moving Assistance Programs are designed to help veterans who may be facing the daunting task of moving due to various reasons such as transitioning to civilian life, changing duty stations, or seeking better opportunities. 

These programs aim to help with relocation expenses and the logistical challenges that come with such moves, recognizing the sacrifices veterans have made for their country.

Qualification criteria can vary depending on the specific program, but they generally encompass veterans who have been honorably discharged from the military. 

Some programs might prioritize those with service-related disabilities or other specific needs. It’s essential to research and inquire about the specific eligibility requirements of the program you’re interested in.

Relocation Assistance for Veterans Offered By Veterans Affairs

The U.S. Department of Veterans Affairs (VA) offers a range of free veteran moving assistance programs to support veterans during their moves. These programs are part of the VA’s commitment to ensuring veterans have a smooth transition back into civilian life. 

One of the notable programs is the Special Adaptive Housing (SAH) program, which provides grants to help veterans with certain service-connected disabilities adapt or purchase homes to accommodate their needs.

Additionally, the VA’s Home Loan program can provide assistance in obtaining favorable mortgage terms, making it easier for veterans to purchase homes in their desired locations. This can be particularly helpful for those relocating due to job changes or retirement.

How to Apply for Veteran Moving Assistance 

Applying for Veteran Moving Assistance Programs typically involves several steps. The process can vary based on the specific program you’re interested in, but here’s a general overview of what to expect:

Research: Start by researching the different Veteran Moving Assistance Programs available. Each program has specific eligibility criteria, benefits, and application procedures to help you find the best veteran moving company. Determine which program aligns with your needs and circumstances.

Gather Documentation: Prepare the necessary documentation to establish your eligibility. This might include proof of military service, discharge papers, medical records (if applicable), and other relevant documents.

Complete Application: Fill out the application form for the chosen program accurately and thoroughly. Missing or incomplete information could lead to delays in processing.

Submit Documents: Attach the required documentation to your application. Ensure that all documents are legible and up-to-date so you can effectively find moving companies for veterans.

Submit Application: Submit your application and accompanying documents through the designated channels. This could involve online submissions, mailing physical documents, or visiting a VA office in person.

Wait for Approval: After submitting your application, be prepared to wait for a response. The processing time can vary, so exercise patience during this stage.

Save Money With the ARC Realtor Rebate

Another valuable resource for veterans during relocation is the ARC Realtor Rebate Program. This program helps you save money on closing costs when purchasing a home. By partnering with one of our qualified agents, you can save thousands of dollars on the purchase of a new home. 

We understand the unique needs of veterans and the ARC Realtor Rebate Program not only provides financial support but also ensures that veterans receive expert guidance throughout the home buying or selling process.

 

Veteran Moving Assistance: FAQs

Are these programs available to all veterans, regardless of when they served?

Most Veteran Moving Assistance Programs are available to veterans who have been honorably discharged, regardless of when they served. However, some programs might have specific eligibility criteria related to service periods or deployments.

Can I apply for multiple assistance programs?

Yes, in most cases, veterans can apply for multiple assistance programs as long as they meet the eligibility criteria for each program. However, it’s essential to ensure that you don’t inadvertently overlap benefits.

How long does the application process usually take?

The application processing time varies depending on the program and factors such as the volume of applications and required documentation. It’s advisable to apply well in advance of your intended move to allow for sufficient processing time.

What if I have service-related disabilities that require special accommodations in my new home?

If you have service-related disabilities, you may be eligible for the Special Adaptive Housing (SAH) program offered by the VA. This program provides grants to help you adapt or purchase a home that meets your specific needs.

Can I receive assistance if I’m moving to a different state or even overseas?

Many Veteran Moving Assistance Programs are designed to support veterans regardless of their destination, whether it’s within the United States or overseas. 

However, the specific benefits and veteran moving services available might vary based on your destination and the program’s guidelines. In addition to military relocation professionals, there are many moving companies with military discounts that can help. 

It’s recommended to inquire about the scope of assistance provided by the program you’re interested in to ensure it aligns with your relocation plans.

Final Thoughts

Relocating as a veteran can be a complex and sometimes overwhelming process, but it’s heartening to know that there are dedicated programs and resources aimed at easing the challenges. 

From financial assistance to expert guidance in real estate transactions, these programs recognize the sacrifices veterans have made and strive to make their transitions as smooth as possible. 

If you’re a veteran facing a move, take advantage of these assistance programs to ensure a successful and stress-free relocation. Your service to the country deserves nothing less.

ARC Relocation can help make your move as easy as possible, and offers $1,000’s of dollars to current and prior service military in the form of a real estate rebate. Simply fill out the form below to claim yours:

When it comes to navigating the complexities of financial benefits and allowances, understanding the Dislocation Allowance (DLA) rates can be essential. 

This guide aims to shed light on what DLA rates encompass this year. From comprehending the concept of DLA rates to discovering the application process, payment methods, and eligibility criteria, this article will provide you with the necessary insights into DLA rates.

What Is a DLA Rate?

The Dislocation Allowance (DLA) rate is a significant financial benefit that assists individuals in covering the costs associated with relocating due to a change in their service assignments. The purpose of DLA rates is to alleviate the financial burden of moving, helping service members and their families transition to new duty stations more smoothly.

How to Apply for DLA

Applying for DLA is a process that involves submitting the necessary documentation to the appropriate authorities. The application typically requires details about your service assignment change, the location of your new duty station, and other relevant information. The application process can vary based on your branch of service and specific circumstances.

How Is DLA Paid?

DLA is paid as a lump sum directly to the service member. This lump sum is intended to cover various expenses associated with relocating, such as transportation, temporary lodging, and other incidental costs. Unlike monthly allowances, DLA is paid as a one-time payment. You can use our DITY move calculator to get an idea of how much your move will cost so you can determine how much money you’ll have left over. 

Who Is Not Entitled to DLA?

While DLA is a valuable benefit for service members undergoing reassignments, it’s important to note that not everyone is entitled to receive it. 

The DLA site indicates that service members who are changing duty stations due to a Permanent Change of Station (PCS) or a Temporary Duty (TDY) assignment are eligible for DLA. However, specific eligibility criteria can vary based on your branch of service and the nature of your assignment.

Primary DLA Rates

DLA rates are structured to accommodate various pay grades and situations. It’s important to remember that the army relocation disallowance rates can differ based on factors such as dependents and the type of assignment. This information applies to the Navy, Marine Corps, Coast Guard, Space Force, Army, and Air Force costs. 

Below is a general overview of primary DLA rates:

Pay Grade	Rate with Dependants	Rate with No Dependants
O-10	$5,595.91	$4,545.85
O-9	$5,595.91	$4,545.85
O-8	$5,595.91	$4,545.85
O-7	$5,595.91	$4,545.85
O-6	$5,038.60	$4,170.45
O-5	$4,856.70	$4,016.69
O-4	$4,281.27	$3,722.33
O-3	$3,542.04	$2,983.15
O-2	$3,024.48	$2,366.38
O-1	$2,703.70	$1,992.63
O-3E	$3,806.63	$3,221.26
O-2E	$3,434.60	$2,738.43
O-1E	$3,173.31	$2,354.79
W-5	$4,132.43	$3,781.83
W-4	$3,788.50	$3,358.52
W-3	$3,470.97	$2,822.75
W-2	$3,193.16	$2,506.93
W-1	$2,761.61	$2,098.43
E-9	$3,636.36	$2,758.30
E-8	$3,351.93	$2,531.71
E-7	$3,112.14	$2,162.97
E-6	$3,109.26	$2,093.94
E-5	$3,109.26	$2,093.94
E-4	$3,109.26	$2,093.94
E-3	$3,109.26	$2,064.19
E-2	$3,109.26	$1,774.81
E-1	$3,109.26	$1,639.26

Please note that these rates are subject to change and can vary based on the branch of service and other factors. It’s recommended to consult official sources or relevant authorities for the most up-to-date and accurate information about DLA rates for your situation.

Want to save even more of your DLA and use it for other expenses? Consider looking into our ARC Realtor Rebate that benefits military members all over the world. We’ve helped hundreds of people like you save thousands on their closing costs through the use of our military rebate. Click here to learn more today! 

DLA Rates: FAQs

How much have DLA rates increased?

Military pay increased 4.6 percent from 2022 to 2023. However, DLA rates can fluctuate from year to year based on various factors, including changes in the cost of living. It’s advisable to refer to official sources or relevant authorities to get precise information about the rate increases.

How is my DLA rate determined? 

Your DLA rate is determined based on factors such as your pay grade, the presence of dependents, and the type of assignment you’re undergoing. Different combinations of these factors can result in varying DLA rates.

Am I eligible for DLA if I relocate without dependents?

Yes, even if you’re relocating without dependents, you may still be eligible for DLA. Your eligibility is primarily determined by the nature of your assignment and the specific policies of your branch of service.

Final Thoughts

Understanding DLA rates is pivotal for service members and their families who are facing reassignments. By grasping the concept of DLA rates, how to apply, and who is eligible, you can better navigate the transition to a new duty station. 

Keep in mind that DLA rates can vary based on factors like your pay grade, dependents, and assignment type. To ensure that you receive the appropriate support, consult official sources or relevant authorities for accurate and up-to-date information about DLA rates.

ARC Relocation can help you with your military relocation. Contact ARC Relocation today to schedule a complimentary call. 

Starting in January of 2021, the military decided to increase the reimbursement amount for moving expenses from 95 to 100 percent. This means that the government will pay 100 percent of your expenses in the event of a PCS. 

For those who are organized and great at managing money, you can go through the entire move and actually end up with money left over on the other side. 

A DITY move calculator can help you do this by helping to calculate the total expenses of your move while factoring in your reimbursements or allowances. 

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What is a DITY or Personally Procured Move? 

A DITY or PPM is essentially a relocation where you handle the entire process of moving. This takes place in government positions where traditionally, a government procured move or GPM would take place. 

In a DITY, you have more control over what moving companies you hire, how the entire process unfolds, and the timeline of your move. 

Many people choose this method of relocation because it allows you more time and flexibility and for those with experience, this often seems like the way to go. 

 

Another reason overlooked by inexperienced military movers is the fact that you can actually make money from a PPM. The government will pay 100 percent of the cost of a GPM which means you are in the driver’s seat in terms of how you spend that money. 

If the government pays you more money than you need to complete the relocation, you’re entitled to keep that money whereas, those who settled for a GPM, will be at the mercy of the government for the money they need. 

At this time, a lot of people will use a DITY move calculator to compile their expenses based on number of service members moving, family members, dependents, distance, travel days allowed, and overall weight and quantity of whatever is being moved. 

What Allowances Do You Receive in a DITY Move?

Once you’ve figured out what your expenses will be, you’ll want to subtract your allowances to figure out what the overall cost of the relocation is. This will allow you to determine if the amount of money granted by the government will leave anything for you once the relocation is over. 

If you find that you won’t actually accumulate any money, it may make more sense to allow the government to handle your move because the benefits to you and your family will be minimal. Here are some of the allowances you’ll get. 

Dislocation Allowance (DLA)

A DLA is a reimbursement for all service members to cover expenses accrued during the moving process. As you can likely guess, this is a very broad description and can cover a lot of different things. 

The only way you’re not eligible for a DLA is if you have never had a PCS move before and you have no dependents, you’re being ordered to active duty without dependents, or you’re performing retirement travel. 

So, a DLA is primarily in place to help those with families get the most out of the benefits provided by the government to offset the costs of being transferred to a new facility. 

Monetary Allowance in Lieu of Transportation (MALT)

On a Military Calculator, MALT refers to mileage reimbursement for service members. If you’re moving as a result of a PCS move you’re authorized to receive 18 cents per mile for each portion of travel you take for your relocation. 

Per Diem 

PCS travel also allows for a “per diem” or allowance to be paid during the move. This money will reimburse you for lodging, food, tolls, fuel, and other necessary expenses you may encounter during the move. 

The way this is determined is by taking ¾ of the applicable rate for each dependent that is 12 years or older. If they’re under 12 it’s ½ of their rate. There is a lot of valuable information here on relocation allowances for military members. 

How do I use a DITY Move Calculator?

A PPM move calculator or DITY move calculator works like this: [Reimbursement Amount] – [Total Moving Expenses] = X. The key is making sure you have a grip on exactly how much you’ll be paying in total moving expenses. If you do this calculation and find that X = a positive number, it means you’ll have money left over from your DITY move. If it’s a negative number, you may want to recalculate, rethink some things, or consider letting the government handle the move for you. 

Keep in mind that while the monetary aspect of it may seem important, the stress and strain a GPM puts on your family isn’t always worth it. 

 

Is Doing a DITY Move…The Right Move? 

As previously mentioned, using a DITY calculator and doing the move yourself is worth it in many cases. If you’re on a tight schedule and the carriers can’t accommodate you, you’ll find that it’s a lot less stressful and easier overall. 

The only thing to keep in mind is that no one is doing the work for you. You need to pack everything yourself and if you’re not an organized person, you may struggle with doing this. This is also a reason why they don’t usually allow a DITY move for those undergoing PCS for the first time. It helps to have experience and if you don’t have it, find someone who does. 

USAA Movers Advantage also used to be a program to help military members by referring them to real estate agents in their new location and also reimburse them for money spent during the relocation. 

This is unfortunately no longer the case but the good news is that ARC offers a home buying or selling rebate to everyone regardless of military status. It helps offset the cost of packing, unpacking, supplies, furniture, transportation, disposal, and more. 

If you’re in the midst of a PCS or you know someone struggling to figure out the cost using a DITY move calculator, schedule a free consultation with us today. We’ve helped thousands of military members with their relocation and we can help you too. 

Note: ARC Relocation is a privately-run, 3rd-party business, and is not a military or government entity. The above article is for reference only.