We have launched a new section of the commercial side of VA Mortgage Center.com that highlights state-specific benefits for Veteran home buyers.

While the core benefits of using a VA loan over conventional loans apply nationwide, we think it’s important for residents of each state to be aware of what unique rules and stipulations exist in the state they are purchasing in.

Part of the purpose of You Served is to keep the online community informed on VA benefits - so we are kicking off a weekly section of the blog that will focus on 1 state per week. We hope it can get some traction with not only the consumers in each area but also realtors and appraisers who might find it useful.

Keep an eye out for the first post in the coming week . . . and thanks for reading everything from our Staff, Troy and the outstanding CJ here at You Served!

Much like the temporary increase that was granted for the FHA loan program last month, some amended legislation is on the fast track in Congress currently that would raise the VA Loan limit in some areas to $730,000 temporarily. This comes in response to an admitted ‘oversight’ of Veterans and service members with the FHA expansion.

Additionally, the bill — which passed the Senate on Thursday by an 84-12 vote — expands two veterans’ home programs and would allow the cap on veterans’ home loans, now set at $417,000, to temporarily rise as high as $730,000 by matching the caps of the Federal Home Loan Mortgage Corporation. Loans at the higher limit would be available through the end of the calendar year.

Track HR 3221 as it moves to the House, and read the full story at NavyTimes.com.

We are proud to be releasing our first video here on VA Mortgage Center.com, geared towards explaining some of the benefits on the VA Home Loan Program. Mostly we just wanted to create something that was unique and might help raise awareness of the benefits afforded to Vets and Active-Duty military in purchasing or refinancing their home.

Here it is, in all its glory. We hope you enjoy it.

My local hometown newspaper, The Buffalo News, recently published an article on what I consider to be one of the hero’s of the local military community. The Article is located at http://www.buffalonews.com/cityregion/buffaloerie/story/236956.html. They wrote an article on my VA representative, Ms. Tracy Kinn. Tracy was the VA rep I ran into at my local Amherst, NY City Hall one day not long after getting back from Afghanistan. I am not even sure why I was in city hall that day, but I just remember looking down the hall and seeing a sign that stated “Veteran Affairs”, which of course caught my eye.

I thought to myself “well let’s go check that out” and I walked in to meet Tracy and her brand new starting-that-day secretary. I asked Tracy what she did and she told me what her role was, that she worked for the VA in this remote location and that one of her jobs was to help veterans to apply for benefits to include disability benefits. Since I have collected medical disability since I got out of active duty in 1996 and I needed to start it back up after getting back from Afghanistan, I was pretty happy to run into her. I had been planning to go to the VA offices in Buffalo directly and try to navigate the red tape and paperwork myself to do that. After Tracy told me that it was he job to help with that, help with getting medical appointments set up and several other things that I know I needed to do, I knew that God had led me into her office. This was the lady I needed to talk to as I was sure she could help me with the whole process.

I have written on this blog a few times about my experiences at the local VA hospital and how it has not been the typical slow, painful bureaucratic process as it has been in the past. What I have never mentioned on here was that it was Tracy who helped kick-start me into moving forward. On those times when we talked and I said things like “I will get around to it” or “one day” it was her, the bulldog as I like to call her, who said “bullcrap, you need to do that now…”. She motivates and (as a female civilian and not a weathered old senior NCO) it catches you off guard when she tells it like it is. She is the voice of many a veteran and just like a good platoon sergeant or first sergeant, she keeps the pressure on all of the vets she helps to keep moving forward and not to procrastinate.

Hero is a very over-used word and unfortunately in today’s world clichéd so much that it has demeaned the true value of the word. However it is not one I throw around that often or use in any context. So it means a lot to me and to anyone who knows me when I say that Tracy Kinn is a Hero to me. She did not have to serve on a battlefield, pull anyone from a burning Humvee or throw herself on a grenade to be that either. She throws herself on the grenade of bureaucracy everyday for guys and gals she has never met before.

The House of Representatives Veterans’ Affairs Committee chairman, Rep. Bob Filner, a Democrat from California, called the current VA loan program “irrelevant” for a number a reasons including the loan caps, high fees and strict underwriting and appraisal requirements all of which discourage homebuyers, real estate and mortgage brokers and sellers from using the program.

That’s why he and other members of his committee are working on legislation that would raise loan rates and possibly cut through some of that red tape in order to encourage use of the program.

Filner’s plan has yet to be completed but he says the maximum loan limit in his plan would be $620,000, up from the current $417,000. He is also considering a provision that would prevent lenders from foreclosing on the home of anyone on active duty.

Rep. Steve Buyer, an Indiana Republican, and Mike Michaud, a Democrat out of Maine, introduced their bill last week would raise the maximum loan amount the Department of Veterans Affairs can guarantee. While their proposed limit is not as high as Filner’s uncompleted plan, theirs is still worth paying attention to. Buyer and Michaud’s bill would raise the maximum from $417,000 to $521,250.

Buyer was the former committee chairman and cites the low maximum loan limit as the primary reason the veterans are straying away from the program. In high cost areas of the country the $417,000 cap is much to low and forces service members and veterans from using the program.

Buyer says, “Rising housing costs are keeping many veterans out of the market. And those who are able to purchase the American Dream are paying significantly higher closing costs.”

Buyer and Michaud hope to increase some of the guaranty of the program, making refinancing using the VA loan program a viable option. Right now it isn’t really an option. “With affordable housing so scarce in many areas of the nation,” says Michaud, “the increased guaranty and closing cost assistance should be very advantageous to both our nation’s veterans and home builders.”

On October 1st, 2007 Tri-care released an entire new health care program for all members of the Reserve component. The John Warner National Defense Authorization Act for Fiscal Year 2007 (P.L. 109-364) enhanced the Tri-care plan, which is now the Tricare Reserve Select Plan provides low-cost and comprehensive health care coverage for all active drilling National Guard and Reserve members. This new plan that went into effect on October 1st, provides the lowest premiums ever and for the first time full and wide open qualification by just being a serving member. Previously the plan was in a tiered fashion that charged different rates based on the servicemember’s status. The highest level of the tier was as costly as an individual buying their own healthcare without a group discount.

The new Tricare Reserve Select (TRS) provides full Tricare standard coverage to individuals for a mere $81 a month and full family coverage for only $253 a month. That is much cheaper that many company provided health care plans in the market today. I know that is over $50 cheaper than the plan my company offers. In addition to the cheap monthly rates, it also has very low deductibles, with family deductibles for E6 and higher only being $150 per person or $300 max for the family. Looking at the plans my company provides that is much cheaper than the $250 per person, $1250 per family they offer. These rates are pretty common with company provided health insurance plans across the board.

Since my family is coming off of 19 months of Tricare coverage based on my Title 10 deployment, we are already used to the doctors, coverage and process in using Tricare. Their coverage and reimbursements have been very good and much better than the CHAMPUS days of past. If someone was enrolled in the old plan, they must still sign up for the new one as the coverage does not roll over. The only requirement to receive this new plan is simply to be a actively drilling member of the reserve component (includes National Guard) .

I have written about the benefits of being a military member before on everything from restaurant discounts to special services, and this one is definitely another benefit that should not be passed up if a person is a serving member of the Reserves or National Guard. For more information or to enroll contact your state representative listed on http://www.tricare.mil/mybenefit, select the “benefits update” link for the Tricare Reserve Select information page.

VA Mortgage Center.com’s newest feature is likely to surprise many readers. The new Statistics and Reports Section was compiled to educate visitors and dispel misconceptions about the VA Home Loan Program. The data presents facts in a number of categories including “Availability and Awareness,” “Qualifications and Typical Loans.” There are also statistics compiled from US Census data detailing the demographics of Veterans living in America.

Possibly the most surprising statistic is that 80% of VA Loan borrowers could not qualify for a conventional loan. Interestingly enough, VA Loan foreclosure rates have been dropping while other types of loans continue to have rising foreclosure rates. The census statistics offer interesting insights about the rising rate of Veterans in the Southern United States, while the rate decreases elsewhere. Another rise has been in the number of female Veterans, though it’s only been a 2% increase in the past 20 years.

For more facts and figures, visit our brand new Statistics and Reports Section. Click here.

We are homeowners! The closing table is always an interesting hodgepodge of emotion. On one level, you’re happy to have it all over with. On another, you realize that you just made a HUGE purchase and along with it comes all the headaches of owning a home. Thankfully, this isn’t the first house we ever bought.

When I approached VAMC about the possibility of using their services to get a VA loan to purchase a new home, I was a little apprehensive. The VA loan process isn’t the easiest way to get a home loan by any means. However, it does save a veteran a lot money. Of all the benefits of military service, I’m most thankful for the VA loan. Without it, purchasing a home on the kind of income we earn would be difficult. Or better yet, purchasing a home that I would be proud to live in would be difficult. Finding one that fits my family would be difficult.

On the way here, we stopped to stay with some very good friends over the weekend. They are stationed at Fort Knox, KY. We had an opportunity to attend church with them. It was a great experience because I saw other people that I’ve known throughout my years in the military. I saw friends from my time at Fort Irwin, at Fort Stewart, and from Iraq. All in one little town. I also got to see where the nation’s gold reserves are located. We must have come at a bad time because they weren’t giving away any free samples while I was there. We ate at one of my favorite restaurants and probably the best restaurant in the WORLD - The Texas Roadhouse. Speaking of which, I left my prime rib leftovers in Hilary’s fridge!!

Generally, those of us in the military (or living on a military retirement) are almost forced to live paycheck to paycheck. Sometimes, it’s our own fault for failing to properly manage our finances. For example, at my pay grade, if I’m living paycheck to paycheck it is my fault. I think I make pretty good money, but it’s taken more than 13 years of service and seven very difficult promotions to get. We just have to watch that with each pay increase we don’t also increase our lifestyle. That happens all too often in the military. We are so accustomed to doing without that when we get promoted and earn a few extra dollars we tend to get those things we’ve always wanted. We don’t really think about how we were able to live without them. So, we increase our bills and/or debt along with our increase in pay. But, I digress.

It was very important for me to be able to find a home and get moved in before I had to leave again. I’m only going to be here for a few weeks before I have another school I need to be at. I’d hate it if my wife had to do all the unpacking herself while I was blissfully sitting on my butt eight hours a day listening to lectures and learning how to be a more effective senior NCO. I’m sure I’d get over it, but I doubt Emily would.

I cannot say enough about the VAMC process. Our agent, Nathan Long, has been tremendously helpful (in spite of having a little baby at home to deal with) from point A to point B. Reading some of the comments of my previous posts on this topic, I know that this isn’t the case for everyone. To those individuals, I would say that it hasn’t been a one way conversation. I’ve called Nathan just about as much as he called me - probably more! If I didn’t get him, I left a message for him. Then I still called back. It’s probably no secret that there are people in every organization, even VAMC, that are not 100% dedicated to their profession. Unfortunately, customers suffer with those people. If you don’t feel like you’re being kept informed on the loan process, call and speak with someone else. Don’t be afraid to dime that person out. That goes for any business you enter into.

The other side of the coin is that it is incumbent upon the loan applicant to also be speedy on their end. There were a few instances where I was asked for a particular document or letter and didn’t think I was going to be able to get it. Since I’m in the middle of move, I don’t have access to everything I need right away. But, I searched long and hard and made a lot of phone calls and scoured the internet until I found what I was looking for (thank goodness for TurboTax online software). I was generally able to provide whatever document the mortgage company needed within a few days. Having our stuff together initially definitely helps the loan process go much quicker. Nathan was telling me that some people take as long as a month to respond to a request for more information. I really wanted needed this loan quickly, so I went out of my way to get everything done in a timely fashion. I think that Nathan responded to that and did the same thing on his end.

We are now living in a wonderful four bedroom home in a quiet neighborhood. We have wonderful neighbors with children about the same age as mine. Our little cul-de-sac is full of great people. Not only that, but good Christian people. That’s important since I don’t want my kids hanging out with people who are going to try and get them in trouble. We were able to close on the house four days earlier than I had scheduled. We arrived in town on Monday and closed on the house on Tuesday.

For the first time ever, I bought a house almost entirely sight unseen. We found an agent, Ron Tyra, online. We searched for homes online. Ron sent us digital photos. Then he sent more digital photos. He traveled all over the area checking out homes we were interested in. The loan application process was done through email and the post office. I didn’t even meet Ron until the day before closing. It was a very nerve-wracking thing to spend $144,000 on something you’ve never seen. But, when we finally arrived and had the opportunity to walk through the home, we were more pleased than we expected. All the repairs we required were made. The only thing we hated about it were the colors, but we knew that before even arriving. We’ve spent the past three days painting. Thanks to the vaulted ceilings, I decided to go out and purchase a spray gun, which greatly sped up and simplified the process. It also saved us a bunch of paint. Six gallons later of primer and paint, the major painting is over.

It’s been fun working with VAMC on something other than a blog. I’m gonna miss the phone calls and emails. I’m gonna miss hearing Nathan’s little girl in background of some of our phone calls. I’m also gonna miss the regular conversations with Ron (though I’m sure he won’t miss being asked to drive all over the region taking photos of homes we’re interested in). For the record, I don’t encourage anyone to purchase a home they haven’t personally seen with their own eyes, especially if it’s a first home. I got lucky in that I had good friends in the area that I trusted to look at the house for me. I got lucky with a Realtor who told me like it was - good or bad. I spoke at length with my wife and other members of my family about this decision. I’d be lying if they agreed with what I was doing buying a home this way. I went against some pretty good advice. Things just happened to work out for me.

If you ever find yourself coming to the Huntsville, AL area, I highly recommend that you call Ron and Kathy Tyra. They were the best Realtors a buyer could ask for. They were very professional and responsive to my every request. They gave good advice and ensured that I had everything I needed throughout the process. We also got a pleasant surprise at closing, which I won’t reveal. You’ll just have to buy a home through them to find out for yourself. Once we get all our household goods (tomorrow), I’ll post some pictures of the new digs for all to see.

I have mentioned before in previous posts about the great benefits of being in the military and what all they have to offer. I have talked about the discounts at restaurants, hotels, and other establishments. In addition I also talked about the great specialty services that are only available to the military, like USAA insurance. USAA offers a lot of great services like banking, insurance, loans and other similar services. I already use them for homeowners, life and auto insurance so this weekend as I was shopping around for a vehicle I thought I would check them out for a car loan…and boy am I glad that I did.
When I do major purchases like this I tend to get pretty OCD and research the fire out of everything. Besides all the research I did on the vehicle like safety ratings, consumer reviews and critic’s comments I also researched the loan part of the deal. I searched around for all the interest rates in my area and some that are offered here by national companies. I was also on the USAA site at the same time trying to figure out what my insurance would be on this new vehicle. In doing so, I thought I would check them out on the loan rates also. I was able to apply over the web on their site and get approved. I was blown away at the how quick and easy it was. Their rates are as low as 4.95% which beats anyone else that I have looked at. In addition they do not do compound interest financing, which is where the first year or so of payments is all interest and very little principle. Instead they do simple, fixed interest which means the amount of interest in each payment is the same through the life of the loan. So not only is that better if you decide to pay it off early, but also it gives you more and faster equity in the vehicle.
Now I know this may sound like a commercial for USAA, but it is not. This is a customer testimony to what a great company and what great services they provide to only military clientele. You know when you see the progressive or Gieco commercials, they all mention several companies they are cheaper than but USAA is never one of them.
If you are in the military and need any of the services they provide, you are a fool for not looking to them as an option. In the world of car buying, the buyer wields much more power when they can walk in with a check for the amount rather than trying to finance through the car dealer. So as someone is looking at whether they are going to stay in the service or not, measuring these benefits may be tough but should strongly be considered. When the best a bank can do is 8% interest and a place like USAA can do it for essentially half that amount, then I would consider that a benefit not to be overlooked.

**NOTE, Troy is a 1SG in the New York Army National Guard and writes several blogs on his website at http://www.bouhammer.com**

I asked VAMC if I could write about my experience in using their services and they approved. Let me say up front that my agent, Nathan, has been awesome from start to finish. He has quickly answered every question I’ve had. He stays in constant contact with me as things progress and makes sure I have the most updated information reference my loan.

We finally found a home at our new duty station. Thankfully, I have some good friends in the area that have been tremendously helpful because I’ve been apprehensive about purchasing a home I haven’t physically walked through. I like to “kick the tires” before spending more than $100,000 on something. But, I found a home that I am comfortable making an offer on.

I didn’t come to that conclusion easily. For the past two months, Emily and I have been scouring the area online for a possible house. Our Realtor, a wonderful man named Ron Tyra, has gone out of his way for us as well. We’ve sent him all over the city to take photos and ask questions about homes we were interested in. We gave him some parameters and he dutifully informed us anytime a house meeting those parameters came on the market or there were changes to homes we already looked at. When we thought we found a home we may want to live in, we’d ask him to go and take more photos for us. We introduced him to our friends in the area so they could walk through with him.

Ron is an honest man, to best of my knowledge. When he found something wrong with a home we were looking at, he told us up front. He’s always given us the good, the bad, and the ugly about every property we’ve looked at. He responds quickly to requests for pictures of the A/C vent, a closet, the garage and other odd things. He never tried to push his own listings on us either. As a matter of fact, the home that we chose to make an offer on just happened to be his listing. He didn’t try to sell us the home. He made sure it was really what we wanted and even offered some alternatives in the neighborhood we may have been interested in. We ended up choosing his listing.

The loan process has been just as simple. Nathan sends everything we need via email. We look it over, sign what needs to be signed, and scan or fax it back. As things change in the market, like the recent interest rate cut, he was quick to call us and make us aware of anything that may affect our loan. He knows the VA loan process like the back of his hand. He’s never answered a question (that I can think of) with “I don’t know.”

Now that we’ve made an offer on a home, he has “held our hand” as we work towards closing. Because we are leaving very soon, we requested a quick closing pending the results of the home appraisal and inspection we ordered. Closings are not a simple thing. They take time, but Nathan is working feverishly to meet our deadlines. I’m comfortable that things will be closed before I head to the First Sergeants Course.

All we do now is wait. I’ve ordered the inspection and Nathan has ordered the appraisal. I’ve made an offer and it was accepted by the seller. Ron is working with Nathan to make all this happen as expeditiously as possible. Now we hurry up and wait…