PCS: Exciting, Exhausting, and Expensive

A Permanent Change of Station is one of the most significant events in military life. You're uprooting your family, changing duty stations, and managing a logistical challenge that would overwhelm most civilians. The last thing you need is financial stress piling on top of moving stress.

That's where SCRA comes in. Here's how the Servicemembers Civil Relief Act protects you before, during, and after your PCS move.

SCRA Protection for Your Current Mortgage

If you own a home and are PCSing to a new duty station, SCRA provides crucial protections:

6% Interest Rate Cap: Your mortgage rate is capped at 6% if the mortgage was obtained before your active duty service began. This reduces your monthly payment and frees up cash for moving expenses.

Foreclosure Protection: If you're struggling to pay your mortgage during the transition, SCRA provides foreclosure protection. Lenders cannot foreclose on your home without a court order while you're on active duty and for one year afterward.

Lease Termination Rights: If you're renting at your current duty station, SCRA allows you to terminate your lease early without penalty when you receive PCS orders. This applies to both housing and vehicle leases.

The Hidden Costs of PCS That SCRA Helps With

PCS moves come with costs that aren't fully covered by your military allowances. When you're saving money on interest through SCRA, you can redirect those funds to cover:

  • Security deposits at your new location
  • Temporary lodging expenses
  • Vehicle shipping or driving costs
  • Storage fees for household goods
  • Utility connection fees
  • New school supplies and uniforms for kids
  • Professional clothes for a new climate

Every dollar you save on interest is a dollar available for these transition costs.

Buying a Home at Your New Duty Station

Thinking about buying at your new location? Here's important timing information:

  • Mortgages obtained after your active duty start date don't qualify for SCRA's 6% cap—they're not pre-service debt
  • However, many lenders offer military-specific programs with competitive rates
  • VA loans often provide better terms than SCRA would anyway (0% down, no PMI)
  • Shop around and leverage your military status for the best deal

SCRA's value during a PCS is primarily for debts you already have, not new mortgages you'll obtain.

Rental Protections at Your New Location

If you're renting at your new duty station, SCRA provides ongoing protection:

Future Lease Termination: Your new lease can also be terminated early if you receive subsequent PCS orders or deployment orders.

Eviction Protection: If your rent is below a certain threshold (adjusted annually), landlords need a court order to evict you. You also have the right to stay proceedings for up to 90 days if your military service affects your ability to appear in court.

Dealing with Car Loans During PCS

PCSing often means selling a vehicle or taking one with you. SCRA helps either way:

  • Your pre-service auto loan rate stays capped at 6% regardless of where you're stationed
  • If you leased a vehicle before active duty, you can terminate the lease early when you PCS
  • Savings on auto loan interest can offset shipping costs or help with purchasing a new vehicle at your destination

Credit Card Benefits During Transition

PCS moves are expensive, and many families rely on credit cards to cover the gap between expenses and reimbursement. With SCRA's 6% cap on pre-service credit cards, you can:

  • Carry a temporary balance at minimal interest cost
  • Pay down the balance as reimbursements arrive
  • Avoid the high-interest spiral that traps many PCSing families

PCS SCRA Checklist

Before you leave your current location:

  1. Verify all SCRA rate reductions are in place on existing debts
  2. Request refunds for any excess interest paid
  3. Submit lease termination notice with PCS orders attached
  4. Confirm your forwarding address with all lenders

During your move:

  1. Keep copies of all PCS orders—you'll need them
  2. Track all unreimbursed expenses for tax purposes
  3. Use SCRA-protected credit cards for temporary expenses

At your new location:

  1. Update your address with all financial institutions
  2. Verify continued SCRA protections on all accounts
  3. Research local resources (legal assistance, financial counseling)

Moving Is Hard. Your Finances Don't Have to Be.

A PCS is enough upheaval without adding financial stress. SCRA protections exist to give you one less thing to worry about during transition. Make sure you're claiming every benefit before, during, and after your move.