Many veterans are staring down mortgage default in the wake of the BP oill spill, as jobs and industry have suffered a serious blow along the Gulf Coast.
A bit of help might finally be on the way.
Some mortgage companies have already begun waiving late fees and postponing negative credit reporting for veterans affected by the spill. The Secretary of Veterans Affairs recently urged all mortgage firms and financial institutions nationwide to take similar measures and help soften the economic blow for the those who have served.
“Through no fault of their own, many of our veterans are out of work and are struggling to earn an income,” VA Secretary Eric K. Shinseki said in a news release. “We must assist these veterans in this difficult time, just as they have supported us in their sacrifice to the nation.”
Veterans facing foreclosure anywhere in the United States can seek help from the VA. In many cases, especially with conventional loans, veterans should also contact their mortgage servicer as soon as possible to discuss potential solutions. Veterans interested in talking with a VA mortgage counselor can find their closest Regional Loan Center by calling 1-877-827-3702.
Photo thanks to SouthernTabitha under creative common license on Flickr.
Tweet This Post
Since 1944, veterans, active duty service members, and eligible surviving spouses have been able to purchase a home through the VA home loan program. The VA home loan program offers a wide array of benefits to borrowers, and some of the lowest rates in the industry when compared to other programs that loan to borrowers with a history of bankruptcy or foreclosure.
And the VA loan program is still going strong. Secretary of Veterans Affairs, Eric K. Shinseki, even stated that “The continued high performance of VA loans is due to the dedication of VA’s loan professionals, the support of our partners in the mortgage industry, and most notably, the responsibility of our veterans and their desire to maintain home ownership. VA is making good on its promise to help veterans achieve the American dream of owning a home.”
The VA Home Loan Program strives to make purchasing and owning a home to eligible borrowers more affordable with perks such as zero down payment, no mortgage insurance required, and regulated closing costs. VA-approved lenders may even help borrowers facing foreclosure by finding home-retention options for them. Lenders are able to secure options such as repayment plans, forbearances, and loan modifications all to help the borrower keep their home.
This type of lender dedication has increased borrower success in the VA home loan program dramatically. The Mortgage Bankers Association National Delinquency Survey reports show that the VA’s foreclosure rates have been the lowest of all measured loan types – including prime loans – for the last eight quarters, and serious delinquency rates have been the lowest for the last five consecutive quarters.
The VA Home Loan program has helped nearly 19 million veterans, active duty service members, and eligible spouses achieve homeownership, and the program’s success derives from the dedication of VA employees and VA-approved lenders alike. These individuals’ primary goal has been to enhance the lives of veterans and active duty service members by providing them with the option of affordable home ownership, and their ability to do so has made the VA Home Loan programs one of the most progressive lending programs on the market.
Photo thanks to JaxStrong under creative common license on Flickr.
Tweet This Post
Veterans have a powerful array of new education benefits. Now there’s a simple way to help them find a military friendly school that’s right for them.
GI Jobs magazine recently released its annual list of the nation’s most military friendly schools. The online directory showcases the top 15 percent of colleges, universities and trade schools that are actively embracing veterans as students.
The list takes on even more significance in the wake of the Post 9/11 GI bill, a sweeping piece of legislation that is opening the doors of higher education to thousands more American veterans.
“This list is especially important now because the Post-9/11 GI Bill has given veterans virtually unlimited financial means to go to school,” Rich McCormack, G.I. Jobs publisher, said in a news release. “Veterans can now enroll in any school, provided they’re academically qualified. So schools are clamoring for them like never before. Veterans need a trusted friend to help them decide where to get educated. The Military Friendly Schools list is that trusted friend.”
The list features schools that provide all kinds of benefits to student veterans, including course credit for military service, military spouse programs, on-campus veteran programs and many others. GI Jobs surveyed more than 7,000 schools across the country as part of its compilation process.
Colleges have ramped up their efforts to recruit student veterans since the new GI bill passed.
What is the Post-9/11 GI Bill?
The Post-9/11 GI Bill is a government-provided stipend that allows military members to go to school with little to no out-of-pocket expenses.
The stipends cannot be used at vocational and technical schools. Only institutions of higher learning are covered. Tutoring, licensing and certification test reimbursement are approved under the Post- 9/11 GI Bill.
The bill also provides financial support for books, fees and living expenses.
Why Go to a School on the List?
The schools on the list all have a tendency to recruit students who served in the military.
“Military students bring a high degree of maturity, life experiences, diversity, leadership and worldliness to the classroom,” Dr. Dorothy Bassett, dean Duquesne University’s School of Leadership and Professional Advancement, said in a news release. “Other students and faculty benefit from the different perspectives that service members and veterans bring.”
Institutions on the Military Friendly Schools list also offer students on-campus veterans programs, credit for service, military spouse programs and much more.
Educators from a host of colleges and universities, including Carnegie Mellon University, Colorado State University and Dallas County College, helped compile the list. Veterans can see what other members were involved with the formulation of the list at Military Friendly Schools.
Photo thanks to InnerSpirit under creative common license on Flickr.
Tweet This Post
If you have been considering a VA home loan and have been doing some research on the VA home loan program, you have most likely come across the Certificate of Eligibility requirement. A Certificate of Eligibility is a document distributed by the Department of Veterans Affairs to honorably discharged veteran or to active duty service members who have served for a certain period of time, and is a must for any service member interested in purchasing a home through the VA loan program.
What can a Certificate of Eligibility be used for?
A Certificate of Eligibility is a form that lets VA-approved lenders know that a service member has served in the United States military long enough to become eligible for VA home loan benefits. The Certificate of Eligibility also tells military personnel, and their VA-approved lender, how much they are able to borrow in order for their loan to be insured 100% by the VA. Service members will need a Certificate of Eligibility should they:
- apply for a VA home loan
- need to replace a Certificate of Eligibility that was previously issued
- regain the VA home loan benefit after paying off a previous VA loan
- want to refinance your existing VA or conventional loan
How do you obtain a Certificate of Eligibility?
There is usually a lot of paperwork that needs to be managed when working to secure a home loan, however, the VA has made securing a Certificate of Eligibility easier for applicants. To obtain a Certificate of Eligibility, a service member or eligible spouse has two options:
Have your VA-approved lender obtain it for you
Most VA-approved lenders have access to a program called Automated Certificate of Eligibility which they are able to enter in your information and receive your Eligibility Certificate in little time. On occasion, the automated system may not have enough information to obtain a Certificate of Eligibility which will require you to obtain your certificate manually.
Submit the application yourself
For those who do not have enough information in the VA’s automated program, or who simply choose to do it themselves, they can apply for their Certificate of Eligibility by filling out and submitting form 26-1889 to the VA. Applications can be obtained on-line, and the turn around time for filing for a Certificate of Eligibility manually is generally 10 days.
Although the Certificate of Eligibility is needed to secure a VA home loan, VA-approved lenders will also determine a borrower’s eligibility by reviewing his or her credit history and income.
Photo thanks to tenacious_serendipity under creative common license on Flickr.
Tweet This Post
Having a loved one serve in the United States Military can be difficult for any family, but losing a loved one during their time of service can be a family’s worst fear. To help families during their time of loss, and to help them maintain their quality of life after the departure of their loved one, the Department of Veterans Affairs offers Survivors’ Benefits.
What are Survivor Benefits?
To dependents of veterans there are a wide variety of benefits ranging from educational assistance to financial assistance that are designed to maintain and enhance the quality of their lives after the death of their service member. The Department of Veteran Affairs, the Department of Defense, the Department of Labor, and the Social Security Administration each offer their own type of assistance. Some of the different benefits offered by these departments include, but are not limited to;
- Burial Assistance
- Life Insurance through Servicemembers Group Life Insurance (SGLI)
- Dependency Indemnity Compensation
- Survivor Benefit Plan
- Social Security Benefits
- VA Home Loan
- Educational Assistance
Who is Eligible for Survivor’s Benefits?
Generally, the Primary First of Kin, or PNOK, is eligible for any type of Survivors’ Benefits offered by the federal government. Before your service member departs for active duty, they are required to fill out a form in which they have to write down their PNOK. This person is the individual who will most likely receive benefits, and will be the first to be notified in the case of injury or death. Individuals who are normally eligible for Survivor’s Benefits include:
- Surviving spouse
- minor children
- dependent parents
Depending on circumstances, step-children and/ or grandchildren may also be eligible for benefits. To obtain your rightful benefits, you will need to submit an application along with your decedent’s name, birth certificate, Social Security number, and service information; and your birth certificate, Social Security number, and marriage certificate. If you have any questions regarding the benefits you may or may not be eligible, contact the Department of Veterans Affairs. They have representatives ready to help, and to guide you in the right direction.
Photo thanks to stuwillis under creative common license on Flickr.
Tweet This Post
Veterans returning home from war often suffer from ailments that they believe can not be treated by pain medications and therapy alone. Veterans suffering from certain medical conditions have even been prescribed medical marijuana by state-approved physicians in the past, but were often denied VA health benefits if they used the medical marijuana. However, after hard work from organizations like the Veterans for Medical Marijuana Access, the government has since changed its laws to better benefit those needing medical marijuana and VA health benefits.
What is Medicinal Marijuana used for?
There are fourteen states that have elected to allow the use of medical marijuana, however, their choice to allow the legal use of medical marijuana is in direct conflict with federal law. These states have chosen to disregard the federal laws pertaining to marijuana because they do not feel it is appropriate to deny those suffering from certain medical ailments. These states often allow physicians to prescribe medical marijuana to those suffering from:
- Glaucoma
- Chemotherapy induced nausea
- Chronic Pain
- Multiple Sclerosis
- Epilepsy
If I receive Medical Marijuana will I be denied VA benefits?
Prior to new ruling, recipients of medical marijuana were often denied or given limited quantities of medications prescribed by the VA. VA doctors were not allowed to give veterans with medical marijuana prescriptions further VA-approved treatments which caused many veterans to stray from the VA health care system. Under the new ruling, VA doctors will still not be able to prescribe medical marijuana to veterans, but they will be able to offer other VA-approved treatment options to those veterans. However, some VA-treatment options may still be limited due to the VA’s concern with mixing medical marijuana and certain narcotic painkillers.
Although the VA is not allowed to prescribe medical marijuana to patients due to its conflict with federal law, the system has eased its guidelines to better serve veterans. The goal of the VA is to serve veterans to the best of its abilities, and has been trying to work with federal law to improve its health practices. If you currently hold a prescription for medical marijuana, and are concerned about your eligibility for VA health benefits, simply ask your VA physician. They will let you know what you are eligible for, and what can be done to help you gain the best quality of life possible.
Photo thanks to goodnight_london under creative common license on Flickr.
Tweet This Post
Affordable, easy, and flexible, VA loans are absolutely a great choice if you’re thinking about taking advantage of the current buyers’ market and purchasing a home. But before you sign on the dotted line, here are a few critical questions you’ll need to ask your lender.
1. Am I Eligible for a VA Loan? If you’re a veteran who served at least 90 days during wartime or 181 days during peacetime, active duty service member, or a spouse of an active duty service member or veteran, you most likely qualify for a VA loan. However, be sure you provide your lender with any and all documentation he or she requires during the loan process to avoid any unpleasant surprises along the way.
2. What is the Current VA Loan Limit for my Area? The VA has a set upper limit for the cost of each home purchased under the VA home loan program. This amount varies by the type of dwelling you select and the cost of living in each area of the country, and its critical to understand what the limit is for your area so that you’ll be better able to budget during your home search.
3. What is the Interest Rate on my Loan? VA loans typically have interest rates that are well below the national averages even in the prime lending market (that is, for buyers who have excellent credit and other financial qualifications). Still, ask your lender what your interest rate will be and if you need to do anything to lock in that rate for the remainder of the loan processing period so that it doesn’t change while you’re completing your paperwork.
4. Do I qualify for the no down payment option? Due to increasing restrictions on loan activity, most lenders and banks have had to suspend their low or zero down payment products, and VA loans are one of the last remaining loan programs to permit borrowers to finance up to 100% of their loan value. There are slightly different requirements for the zero down payment program, however, and borrowers will need to meet more stringent credit criteria, partially as a result of new legislation dictating borrower eligibility for these programs. Find out if you can qualify for this loan option before you count on not having to provide any down payment at closing.
5. Can I Roll My Closing Costs into the Loan? VA loans provide borrowers with the option to roll closing costs into the monthly payments of the loan, saving up to $8,000 at closing. Be sure to ask your lender if this is an option for your loan product.
6. What are the Rules Regarding Loan Transfers? Should you ever decide to sell your home, some VA loan products allow you to simply transfer your loan to the next buyer, streamlining the process and making it less financially restrictive for both the buyer and the seller. Spend some time thinking about the future now and make sure you are educated about the eventual sale of your home.
Photo thanks to nieve44 under creative common license on Flickr.
Tweet This Post
College can be expensive, especially for a veteran returning to school later in life. They might have family, housing and many other financial obligations to worry about. Thankfully, veterans also have a number of VA educational benefits they can take advantage of, including housing stipends based on Basic Allowance for Housing levels.
Covering College Housing Costs
Basic Allowance for Housing, or BAH, has long been an important benefit for service members and their families. This monthly housing allowance helps cover housing expenses like rent and mortgage payment.
Under the Post-9/11 GI Bill, Eligible veterans and other service members can obtain a monthly housing allowance based on the location of their school. At present, the stipend averages about $1,200 per month but approaches almost $3,000 in some of the nation’s costlier corners. It’s important to remember that the stipend is based on school’s ZIP code and not the service member’s home ZIP code.
Veterans do not have to live on campus in order to utilize this monthly housing benefit.
Housing Stipend Eligibility
Active-duty service members and veterans who aren’t full-time students aren’t eligible for the housing stipend. The benefit also does not apply to veterans who are taking all of their courses online or in some distance format.
To qualify for these benefits, a veteran must have served at least 90 days in the service on or after Sept. 11, 2001. A veteran can also be eligible if he or she was honorably discharged due to a disability after 30 days of the start of duty.
These monthly housing payments only apply to training at higher learning institutions. Online programs do not qualify unless the student is also enrolled in physical courses as well. The benefits cover about 36 months of study.
To sign up for the Post-9/11 GI Bill, submit an application to the Department of Veteran Affairs. The VA will review the application and issue the applying veteran a Certificate of Eligibility.
Tweet This Post
Receiving orders to move when you’re in the military can either herald adventure or simply another round of packing and loading a truck. Either way, moving is absolutely an expensive proposition. The good news is that typically, the military reimburses much of the moving costs for many of its service members. There are three types of allowances that service members are potentially eligible to receive and, while they sound generally similar at first, there are nuances to each one that makes each different than the last.
The Basic Allowance for Housing (or BAH) is used to offset the cost of civilian housing. The BAH applies when you are not living on government property or in military-provided housing. The Basic Housing allowance is based on a variety of factors including your pay grade, the number of dependents in your family, as well as your location. Areas with high costs of living will have higher BAHs than areas with low costs of living simply because housing is more expensive in areas with high cost of living.
The Dislocation Allowance (DLA) is simply a moving allowance and will apply to moving expenses each time you receive a Permanent Change of Station (or PCS) order. It is generally based on your rank in the armed forces as well as the number of dependents you have at the time of your move.
The Overseas Housing Allowance (or OHA) applies if you are living overseas but not on a military base. Like the Basic Housing Allowance, the Overseas Housing Allowance varies widely depending on the cost of living in your particular area. Other costs, like rental cost in the area and the going rate for utilities and maintenance in the area factor into the OHA as well, with the rate changing depending on the cost of living in your new area.
In addition to the DLA, BHA, and OHA, many armed services members who move at the request of the military are eligible for other forms of reimbursement as well. Usual benefits include full reimbursement of commercial moving services, a temporary lodging allowance, and a per diem allowance. Some active duty service members in certain branches of the military can also expect to have their personal vehicles shipped overseas at no cost or other reimbursements depending on your rank, new orders, number of dependents, and other factors.
For anyone on Facebook, I recommend the new application, Military Basebook. If you’re PCS’ing soon, see the “Relocations” tab on each base for help with your moving needs. But don’t take my word for it check it out today for yourself.
Photo thanks to wwworks under creative common license on Flickr.
Tweet This Post
If you’re one of the many US veterans who requires medical or rehabilitative care, you could benefit significantly from medical care provided in conjunction with the Department of Veterans Affairs. The Veterans Health Administration (VHA), provides a wide range of medical, rehabilitative, and surgical care to veterans who qualify for their program with an emphasis on primary and preventative care.
The Medical Benefits package provides both outpatient and inpatient services and has a variety of specialist types of care available as well. Even non-military related injuries and illnesses are covered and veterans can rely on the VA for most of their health care, which can provide significant financial savings throughout the veterans life. Care from the VA also focuses on issues like high rates of post traumatic stress disorder and suicide (as compared to the general population) and can often provide a specialized and personalized form of care that civilian physicians may not be trained to provide. Additionally, combat veterans returning from war zones may be eligible to receive free health care for up to two years for any combat related injuries. Otherwise, a small co-pay generally applies for most care that the VA provides.
Qualification for care with the Veterans Health Administration depends on a variety of factors, and its best to contact the VA to determine if you are eligible for the health program. Most veterans who received an honorable discharge or a general discharge should experience no problem and other types of discharges are allowed, provided that you were discharged under circumstances other than dishonorably. Most veterans need twenty four months of continuous active duty military service. However, this condition will not apply under the following conditions:
You’re an enlisted service member who began active duty before September 8, 1980 or an officer who began active duty prior to October 17,1981.
Were an Active Duty reservist or National Guard member who completed your requested term and were granted an honorable discharge.
Were discharged due to a service related disability or only request a benefit for a service related trauma or injury.
Again, eligibility is ultimately up to the Department of Veterans Affairs and is, unfortunately, limited by the amount of funding provided to the VA by Congress each year. Funds are generally very limited and the VA has set up precedence groups to ensure that veterans with the most need are able to receive care on a prioritized basis in the event that the program should run out of funding.
For more information on the Veterans Health Program, please visit the Health Care website.
Photo thanks to 60in3 under creative common license on Flickr.
Tweet This Post
