Top 9 VA Loan benefits - We Are The Mighty
MIGHTY MONEY

Top 9 VA Loan benefits

So, you’ve been told that you should use your VA Loan for your home purchase, but the question is: Why? In this post, we’ll talk about some of the benefits and advantages of using your VA Loan for your home purchase.

Benefits of the VA Loan

1. No Down Payment

The VA Loan does not require a down payment for an eligible property purchase. While a 20% down payment on a conventional loan would be difficult for most service members, the VA Loan enables borrowers to put down 0% to buy a home. As of January 2020, there is no cap to a first-tier VA Loan-making it even better! Remember, though – there are still closing costs involved – even if there’s no down payment, so make sure to budget those in when considering a home purchase!

2. No PMI

While other types of mortgages usually require Private Mortgage Insurance for a lower down payment, the VA loan does not require it. This means less money out of pocket for borrowers and is yet another benefit of using your VA loan.

3. Lower Interest Rates

VA Loans are continuously competitive in their mortgage interest rates. By using a VA Loan, you’re almost guaranteed to receive a better rate than other types of loans.

4. Refinance Opportunities

VA Loan borrowers have two types of refinance options. The VA IRRRL can reduce your interest rate and possibly lower your monthly payment. Then, there’s the VA Cash-Out option that can give you the opportunity to pull cash out based on how much equity is in the property. By doing this, you can use the cash for purchases like renovations or repairs, car purchases, or whatever you need!

5. Advocacy

If you happen to be facing foreclosure, the VA has a loan program that provides foreclosure avoidance counseling and advocacy. These counseling programs help find possible alternatives to foreclosure to save you from a low credit score and heartache.

6. Lower Closing Costs

The VA limits closing cost amounts from lenders who offer VA loan lending. Unlike other types of mortgages, you won’t have to worry about outrageous closing costs where you have to bring a large amount of cash to the closing table. To add to the benefit, the VA also allows up to 4% of the buyer’s closing costs to be covered by the seller – saving you even more money.

7. VA Loan Assumability

Loan assumability is a big benefit to a VA Loan. Because the loan is assumable or transferred to a new borrower, a new eligible buyer could take advantage of a lower interest rate than what is currently offered in the mortgage market. Having the ability to advertise your VA Loan as “assumable” may even help sell your home when the time comes!

8. No Prepayment Penalty

If you are required to PCS, sell the home, or decide to pay off the mortgage, there’s good news! There is no prepayment penalty on a VA Loan. That is yet another reason why using a VA Loan could save you money in the long run. The last thing you need to worry about is paying MORE money when you need to pay off your mortgage!

9. VA Loans are Government-Guaranteed

Another advantage of a VA Loan is that it is backed by a government agency. What does this mean? It means that the federal government guarantees to pay back 25% of every VA Loan regardless of the reason for default. Because this provides participating lenders with a less risky situation, lenders can offer better term agreements to borrowers.

Need More Information?

If you’d like to know more about available VA Loan programs, ADPI has you covered! Our in-house lending team, AmNet is here to help you with the VA Loan process. To speak with one of our awesome loan officers, you can fill out our inquiry form here: https://www.activedutypassiveincome.com/real-estate-agents-and-lenders

This article originally appeared on Active Duty Passive Income. Follow them on Facebook.

MIGHTY MONEY

An easy 9-step car buying guide for the military spouse

It’s happened to the best of us. The second our service member boards that plane to deploy, Murphy decides to insert himself into our world.

It’s almost a given: someone gets sick, one of your spouse’s bills doesn’t get paid, or something inevitably breaks down…and often it’s our mode of transportation that ends up busting out on us.


If this happens to you, I PROMISE, you aren’t alone. But if your car breaks down, how are you going to do all of the things? Well, if there’s no getting around having to purchase a vehicle while your service member is away, we have some tips and tricks to help you through the car buying routine WITHOUT breaking your bank in the process. We realize that big purchases are usually done as a team, and these decisions should (when possible) be made together. Obviously, that isn’t always possible, but here are some things you can do if/when you find yourself squaring off with Murphy over your car.

Top 9 VA Loan benefits

(Flickr / David Wall)

1. Power of attorney (POA)

If you plan on having your service member’s name on the loan or registration, you’ll want to make sure you have your POA handy. This legal document will allow you to act on behalf of your service member for transactions that would otherwise require their physical presence. NOTE: Depending on the financial institution you use to finance your vehicle, a general POA may not pass muster with their terms, so make sure you call to make sure. Some banks just require a faxed copy of the general POA, while others have a special form of their own or require a “special” or “limited” POA.

2. Research, research, RESEARCH!

What kind of vehicle do you need? How much can your family afford each month? Are their certain dealerships in your area that are known for inappropriate practices? These are just a few of the questions you should be asking yourself before you even think of stepping foot into a car dealership.

There are plenty of websites that will help answer these questions so that you’re better able at making an informed decision. One of the first things you can do is figure out the type of features you need and find a few makes and models to look over. It’s not just about the price…it’s about knowing what it is you’re looking to buy. Kelley Blue Book is a one stop shop that has plenty of research tools to help spin you up on the “must-knows” of car buying.

3. Get financed FIRST

When it comes to financing, it’s best to get pre-approved BEFORE you start your search. You aren’t required to know what kind of vehicle you’re purchasing before being approved for financing because the financial institution is approving you…not a certain vehicle. Make sure you understand the terms of your financing as well. If you end up negotiating, say, 00 off the sticker price of the car when you’re haggling with the dealer, that isn’t going to matter in the long run if your interest rate is out of this world.

4. Don’t rush

Buying a car is a big deal, so take your time and don’t rush the process. You need to make sure the car is everything you need/want, both literally and financially. Make absolutely sure you know exactly what your family can and cannot afford. If you find a car you want but it’s a bit over budget, other websites, like Auto Trader, might be able to find you the same car at a lower price somewhere else.

5. When possible, find the right time to buy

Of course there’s no real way to know when Murphy will strike…if we could plan that, Murphy’s Law wouldn’t even be a thing! But it doesn’t hurt to know that timing is everything in the car buying business.

Yes, There Really IS a Right Time to Buy

Of course there’s no real way to know when Murphy will strike…if we could plan that, Murphy’s Law wouldn’t even be a thing! But it doesn’t hurt to know that timing is everything in the car buying business.

The end of the month is usually a good time to buy because dealers often have a quota that needs to be met each month. Each car on their lot needs to be paid for at the start of each month, so car salesmen are looking to unload as many as possible to meet their quota. But buying a car at the end of the year is even better (though, again, Murphy can rarely be planned for).

Top 9 VA Loan benefits

6. History reports are KEY

If you’re not out to purchase a brand new, right off the assembly-line vehicle, you’ll really want to get your hands on a vehicle’s history report. Don’t just take someone’s word that it’s “good to go” as is.

Most dealerships (if they’re worth a darn) will pay for the cost of a vehicle history report themselves, but you can do this as well. Car Fax is a great resource for consumers, and they provide a report that will tell you just about everything you need to know about the car: hidden issues, who owned it last, where it came from, etc. It does cost money to obtain a history report, but it’s chump change compared to the investment you’re making in a vehicle.

7. Don’t skip the test drive

Once you’ve narrowed down your choice(s), it’s time to take it for a test drive.

Sure, the car’s body looks fantastic, but the only way you’ll know that everything is in working order under the hood is if you take it for a spin. Listen for noises that shouldn’t be there, trouble shifting gears, service lights on the dashboard, etc. Many people will return to test drive in the evening, but if that isn’t feasible (because, you know…who wants to pay for a babysitter ON TOP of having to pay for a new car), a lot of dealerships allow you to take the car home for 24 hours to see how it works out. Either way, do NOT skip the test drive.

Again…Don’t Rush!

If you’re just not sure it’s the right vehicle for you or need a night or so to sleep on it, don’t rush it. Take the time you need to mull it over. This is YOUR money, YOUR time and YOUR choice; don’t let anyone push you around. Speaking of which…

8. Don’t be intimidated

It’s not uncommon to feel intimidated when buying a car…especially if that role isn’t really your jam (i.e. it is SO not MY jam). But there’s a difference in FEELING intimidated and BEING intimidated. If, at ANY point in the negotiation process, you feel uncomfortable, or don’t like how you’re being spoken to, SPEAK UP. You hold all the cards and the ball is in your court. If you don’t feel like you’re being treated fairly, tell the service manager. Or better yet…

9. Don’t be afraid to walk out

If you feel like you’re being pushed into signing a contract, or just aren’t picking up what the dealer is putting down…WALK IT OUT. There are plenty of other places that would love to have your business. Do not feel guilty about keeping your money, and your family’s financial security, safe.

This guide is a great way to get started on your car-buying adventure, but we want to add to it! If you have a strategy or a story about buying a car when you were flying solo, we want to hear it!

This article originally appeared on Military Spouse. Follow @MilSpouseMag on Twitter.

MIGHTY MONEY

These are the successful habits of 600 millionaires

Investing can be intimidating.

But those who do it right tend to share similar characteristics, according to Sarah Stanley Fallaw, the director of research for the Affluent Market Institute. She coauthored “The Next Millionaire Next Door: Enduring Strategies for Building Wealth,” for which she surveyed more than 600 millionaires in America.

During her research, she found that five components mark successful investors, including those who are rich: a personality for risk, a high-risk preference, confidence in investing, composure, and knowledge regarding investments and investing.


But millionaire investors do one thing differently: They make more effort with the final component.

“They spend time building knowledge and expertise in managing investments,” Stanley Fallaw wrote.

Millionaire investors spend more time planning for future investments

According to her, millionaire investors spend an average of 10.5 hours a month studying and planning for future investments. That’s nearly two hours more than under-accumulators of wealth — defined as those with a net worth less than one-half of their expected net worth based on age and earnings — who spend 8.7 hours a month doing so.

Top 9 VA Loan benefits

(Photo by Adeolu Eletu)

In her study, 55% of millionaires said they believe their investing success is because of their own efforts in studying and becoming educated, rather than advice provided by professionals.

“Their literacy in financial matters means that they are more tolerant of taking investment-related risks,” Stanley Fallaw wrote. “Future outlook and financial knowledge typically relate to taking greater financial risk, so the time they spend in managing and researching investments helps in decision-making.”

Financial literacy is related to financial “success” outcomes more so than cognitive ability, according to Stanley Fallaw. Having the knowledge required to make appropriate financial decisions — along with a long-term and future-oriented outlook, as well as a calm manner — allows millionaires to make better financial decisions, she said.

Millionaires also favor index funds

Millionaire investors also have something in common when it comes to investing strategies: They act simply, according to John, who runs the personal-finance blog ESI Money and retired early at the age of 52 with a million net worth. He interviewed 100 millionaires over the past few years and found that many of them use the same investing strategy: investing in low-cost index funds.

“The high returns and low costs of stock index funds (I personally prefer Vanguard as do many millionaires) are the foundation that many a millionaire’s wealth is built upon,” he wrote in a blog post.

Top 9 VA Loan benefits

(Helloquence photo)

“Index funds are the most straightforward, cheapest, and most likely way to see strong long-term returns,” the former hedge-fund manager Chelsea Brennan, who managed a id=”listicle-2633716796″.3 billion portfolio, previously wrote in a post for Business Insider. “Index mutual funds offer instant diversification and guarantee returns equal to the market — because they are the market.”

Even the billionaire investor Warren Buffett has championed low-cost investing, often recommending Vanguard’s SP 500 index fund for the average investor, Business Insider reported. He previously called index funds “the most sensible equity investment.”

Personal Finance Insider offers tools and calculators to help you make smart decisions with your money. We do not give investment advice or encourage you to buy or sell stocks or other financial products. What you decide to do with your money is up to you. If you take action based on one of the recommendations listed in the calculator, we get a small share of the revenue from our commerce partners.

Featured image by Sharon McCutcheon.

This article originally appeared on Business Insider. Follow @BusinessInsider on Twitter.

MIGHTY MONEY

FEMA says counties near military bases eligible for disaster assistance

Widespread devastation from Hurricane Matthew has prompted the Federal Emergency Management Agency to designate residents from a total of 55 counties as eligible for individual disaster assistance. States like Florida; South Carolina; Georgia; and North Carolina were hit hard by the storm — both in coastal communities and further inland past Fort Bragg.


Top 9 VA Loan benefits
Specialist Jerimyha Pectol, 689th Rapid Port Opening Element, stages humanitarian aid intended for victims of Hurricane Matthew at Port-Au-Prince, Haiti, October 17th.

As the damage is assessed, FEMA has added counties from all four states where individual residents may apply for disaster relief funding.

Hurricane Matthew made its first landfall by slamming into Haiti on Oct. 4, resulting in over 800 casualties in that island nation. Matthew tore over Cuba and the Bahamas, before impacting the southern Atlantic states. By the time Matthew made its way back out to sea, the death toll had reached nearly 1,400.

The United States Southern Command released a statement Oct. 18 that the command had deployed more than 2,000 personnel and 11 helicopters aboard the USS Iwo Jima to deliver over 223 metric tons of aid and supplies to Haiti. SOUTHCOM expects that the military involvement will recede once “more experienced experts arrive” on the ground in Haiti.

President Obama declared a state of emergency in the four states Oct. 7, opening up federal financial aid. Each of the states’ governors declared states of emergency, and the National Guard was activated to several locations.

According to Newsy, Moody’s Analytics reported that the financial damage from Hurricane Matthew could surpass the $70 billion price tag of Superstorm Sandy.

As a direct result of the damage and the expected cost, FEMA has been quick to update its systems to open up aid to individuals in the stricken areas. There are several ways to request disaster relief funding. Individuals may visit the FEMA website, or call FEMA directly at 800-621-3362.

FEMA also recommends that those affected by the storm call their insurance company to make claims, document the damage with photographs, and complete a proof of loss. Insurance companies can help individuals with this process.

Currently, the list of counties that FEMA has approved for individual disaster relief includes:

  • Flagler County, Putnam County, St. Johns County, and Volusia County in Florida
  • Bryan County; Bulloch County; Chatham County; Effingham County; Glynn County; McIntosh County; and Wayne County in Georgia
  • Beaufort County; Bertie County; Bladen County; Columbus County; Craven County; Cumberland County; Dare County; Duplin County; Edgecombe County; Gates County; Greene County; Harnett County, Hoke County; Hyde County; Johnston County; Jones County; Lenoir County; Martin County; Nash County; Pender County; Pitt County; Robeson County; Sampson County; Tyrrell County; Washington County; Wayne County and Wilson County in North Carolina
  • Allendale County; Bamberg County; Barnwell County; Beaufort County; Colleton County; Darlington County; Dillon County; Dorchester County; Florence County; Georgetown County; Hampton County; Jasper County; Lee County; Marion County; Orangeburg County; Sumter County and Williamsburg County in South Carolina
MIGHTY MONEY

DoD says military doesn’t spend enough taxpayer dollars on MWR

Top 9 VA Loan benefits
Boatswain’s Mate 3rd Class Alexandria Hall poses for a picture with a camel during the Sunset Safari tour sponsored by USS Dwight D. Eisenhower’s (CVN 69) Morale, Welfare and Recreation office. (Photo: U.S. Navy)


The Department of Defense says the service branches aren’t spending enough taxpayer dollars to fund their morale, welfare, and recreation (MWR) programs, according to a memo sent to each of the services last month.

Military Times reported this week that Todd Weiler, assistant defense secretary for manpower and reserve affairs, sent the memo to each branch to remind them that they were responsible for using a specific percentage of taxpayer funds to operate MWR programs.

“These standards are not optional and are not subject to Military Department waiver,” Weiler wrote.

MWR programs are required to receive a percentage of funding from Congress through either appropriated funds or non-appropriated funds, or a combination of the two.

The DoD requires that programs determined to be “Category A” must receive 85 percent of funding from taxpayer dollars. “Category A” are considered “mission sustaining programs” and “promote the physical and mental well-being of the military member,” according to Military One Source.

“Category B” requires 65 percent of operational costs to come from taxpayer dollars. Those programs consist of community support programs like child development centers, which charge families for use and therefore get some funding from customers.

“Category C” are programs that are nearly fully self-funded and include golf courses, base clubs, and recreational lodging. These programs are authorized some limited appropriated funds.

Weiler had previously sent a memo in June to remind the services to return their feedback on MWR funding by August, but both the Army and the Navy missed their deadlines.

Rather, the Army decided to cut $105 million from MWR funds, and the Navy only sent feedback on its Category A funding.

“I thought we needed to up our communication,” Weiler said in response to the Army’s planned slashing of the MWR budget.

The executive director of The National Military Family Association, Joyce Raezer, told Military Times that, due to budget cuts, sequestration, and changes to various other budgetary items, she believed families didn’t expect much from the services. “There are too many other worries,” she said.

Of the services, only the Marine Corps did not meet the 85 percent requirement, coming in at 77 percent of Category A program expenses funded by taxpayer dollars.

Every service fell short of utilizing the required percentage of taxpayer funding for Category B programs.

Weiler called out the Air Force specifically for not having met the requirements for four straight years, with no plan in place to correct the issue.

In the memo sent to the Army, Weiler asked Army Secretary Eric Fanning to halt the planned $105 million cut, a plea that was accepted and approved by Fanning. The Army plans to complete an analysis of its MWR programs and funding later this year.

Military.com reported that Colonel James Love told them that the $105 million cut would go into effect once the Pentagon approved the Army’s requested changes. He blamed a lack of “good business” practices, such as not raising prices for MWR programs, for the decision to cut the Army MWR budget.

“It’s good for families,” Love told Military.com. “But it’s not sustainable.”

Articles

How a Navy pilot-turned-Superbowl winner made it on Wall Street

Top 9 VA Loan benefits
Phil McConkey is not your average Wall Streeter.


His father worked three jobs to put him through private school. He served in the US Navy as a nuclear weapons transshipment pilot, before winning a National Football League Superbowl title with the New York Giants.

He is now president at Academy Securities, a broker-dealer founded in 2009 that employs veterans and service-disabled veterans in areas like investment banking and trading.

McConkey sat down with Skiddy von Stade, CEO of finance career services company OneWire, to talk about his background, and Academy Securities.

During that conversation, he laid out why experience with the military is valuable for those who want to break into the cutthroat financial services industry.

Military culture is honesty, integrity, loyalty, teamwork and by the way, service. We’re in a service industry. Who knows more about those qualities than military veterans? When those qualities and experiences come into helping our clients, it really resonates.

He added:

We’re a small company, growing. We’d like to be a bulge-bracket investment bank broker-dealer at some point. We don’t have the resources that the big banks have, but we’re nimble, we’re quick, and we have differentiated types of value that we add. We got nine senior-level retired generals and admirals, people who have fingers on the pulse of geopolitical macro world we live in. And that’s a value to customers if they’re in capital markets. If they’re managing money.

Watch the full interview with Phil McConkey here.

MIGHTY MONEY

This Combat Camera vet used his skills to launch a civilian career as a photojournalist


CLEVELAND, Ohio — There was a bit of irony in Bill Putnam’s first job as a civilian who’d just transitioned out of the military: He was sent back to Iraq to cover the war, the same place where he’d honed his skills as a photographer for the U.S. Army.

“I knew before I got out of the Army that I wanted to specialize in news photojournalism,” Putnam says. “I happened to meet a lot of people along the way who saw my work and told me I had the drive and talent to do it in the civilian world. It was all about reaching out to people and meeting the right people at the right time.”

Among “the right people” that Putnam ran into along the way was Michael Ware, Time magazine’s bureau chief in Baghdad.

“When I was a soldier going home from Iraq I ran into Michael,” Putnam says. “I was getting out of the military, and I told him I was willing to go back to Iraq. He wrote a letter on my behalf and that helped make it happen.”

Top 9 VA Loan benefits

Putnam explains: “This one was made fairly early in the morning after an all-night raid. The unit, Centurion Company, 2-1 Infantry, had been sent out with an SF team and bunch of Iraqi Army to hunt down a car bomb builder. They didn’t find him. This was early in the unit’s deployment (they were the guys who were extended in 2006 for three months during an early and not so effective ‘surge’ into northwest Baghdad). To me it says a lot, not really about that war, but just war in general, especially war down at the nasty end of the spear. Hunter, the guy pictured, just looks exhausted. War is exactly that – exhausting in every sense – but this is physical exhaustion. The kid waving the gun (it was unloaded) was actually playing with a newly-installed laser pointer.” (Photo: Bill Putnam)

After working in the war zone for nearly a year, he returned to the U.S. and freelanced his way from Washington, DC to Oregon, diversifying his portfolio and expanding his network. Eventually, he was picked up by Zuma Press Agency, and the assignments started coming in at a more regular clip.

To date, his photos have been published in The Washington Post, Boston Globe, Newsweek, Army Times, The Oregonian, Columbia Journalism Review, The New Republic, NPR.org, and digitaljournalist.org. His work also appeared in the Academy Award-nominated documentary “Operation Homecoming: Writing The Wartime Experience.”

He opened a 40-print solo exhibition of his Afghan work titled “Abu in Bermel: Faces of Battle” in February of 2011 at St. Vincent College in Latrobe, Pa. That exhibition moved to Point Park University in Pittsburgh, Pa., in April 2011. His work has also been included in group shows at Glen Echo Photo Works in Glen Echo, Md., and Montgomery College in Rockville, Md. And in August 2013 Putnam opened a 60-image solo exhibition at Healthy Rhythm Gallery in Fairfield, Texas. Life as a civilian photographer was quite different than military life, but his hard work paid off.

Top 9 VA Loan benefits

“It’s really all about hustle,” he says. “You gotta hustle to make that transition. You have to constantly be on the phone with people, you have to constantly think about new projects and what you want to do next.”

And that sort of proactive stance is what brought him to Cleveland to cover the Republican National Convention for Verify Media, a new agency that specializes in mobile device video. At the same time, Putnam has his classic 4-by-5 film camera, which he uses to capture the atmosphere surrounding the convention for Zuma.

Putnam is an imposing figure — tall and bearded — but he possesses a casual manner and calm demeanor that allow him to blend into the background — a very desirable attribute for a photojournalist. As he takes in the scene along Fourth Street, Cleveland’s famed walk lined with bars and restaurants, he’s barely noticed even though he’s a full head taller than the crush of delegates, pundits, TV personalities, protesters, and regular civilians around him.

Watching Putnam in action it’s obvious that he loves his work. He moves through the crowd with an easy gait, taking everything in, at once in the weeds and mindful of the big picture. But for all of his apparent satisfaction with his career choice, he’s quick to note that getting to where he is was a hard-fought series of rejections and missteps. He points out that — unlike the military — oft times pursuing an unorthodox civilian career is a non-linear proposition.

“When I got back from the war, I was dumbfounded that I had to find all of this on my own,” Putnam says. “I like going out and doing stuff, but to get from Point A to Point B, I had no idea how to do that.”

In the face of that reality, Putnam says, “You just do it and hope you find the right path.”

Top 9 VA Loan benefits
Capt. Adam Lackey, Abu Company commander and a tribal sheikh at a meeting outside Bayji, Iraq, May 6, 2006. (Photo: Bill Putnam)

For more about Putnam’s work, visit his website here.

MIGHTY MONEY

How to finance multi-family homes with a VA loan

The current Coronavirus pandemic leaves a lot of questions about the effect on the real estate market. But, one common opinion is that multi-family investing can offer a reprieve from economic disturbance for real estate investors. The reason is that multi-family properties offer less risk due to having more than one unit.

How Can You Finance Multi-family Homes with a VA Loan?

What most people don’t know—is that you can purchase multi-family properties with a VA Loan. It’s an incredible opportunity for seasoned investors or even first-time homebuyers, so make sure you don’t pass it up!

Multi-family Homes Research and Analysis

When you’re researching properties to purchase, know your costs! Your mortgage payments include principal, interest, taxes, and insurance, but that’s not all you need to consider. It’s important to also include factors like utilities, estimated maintenance costs, vacancy, capital expenses, and property management. Having more than one unit means an increase in all of these!

You need to know your potential rents. This helps you (and your lender) determine if it’s a good purchase. Location is a huge factor in rental amounts, so make sure to research locations.


Guidelines to Purchase Multi-family Homes with a VA Loan

First, to finance a multi-family property with a VA loan, the borrower must occupy one of the units within 60 days of closing. This is the same rule that applies to single-family homes. Even though you are required to live on the property, the opportunity lies in renting out the remaining units to cover your mortgage payments.

If there’s one veteran borrower, the property can only have up to four units. So, if you were thinking about doing a VA loan for a 100-unit apartment complex–that’s not possible, but there’s a way to add more units. By using a Joint VA Loan, two veterans can purchase a property together. Because it’s two borrowers, the VA allows for six total units. This includes four residential units, one business unit, and another unit that is joint ownership.

Per the norm, the VA requires the property to meet minimum property requirements to be financed. These minimum property requirements ensure that the property is safe and livable. One of these requirements is that each unit must be private and accessible. Shared water, sewer, gas, and electricity are okay provided:
• The property has separate service shut-offs for each unit.
• There are easements/covenants protecting water connections and VA approves of that agreement.
• Ensure the units have legally protected access to utilities for repairs (even if it’s passing through other livings spaces).
• Shared spaces like laundry and storage are permitted by the VA.

VA Loan Application Process for Purchasing Multi-family

Though the process can be similar to using a VA loan for purchasing a single-family home, there are some differences. Unlike single-family, the VA can allow rental income from vacant units to be considered, but you must prove:
• That you, the borrower, are an experienced landlord/manager using one of these criteria:
o You must have owned multifamily in the past.
o You have prior experience managing multifamily.
o You have prior experience collecting property rentals.
o You were previously employed for any property role.

Once you have provided relevant documentation to prove one of the above roles, the VA will apply 75% of future rental income to the total income consideration. To use future rental income, signed leases must be in place before closing the loan.

Other Considerations When Purchasing Multi-Family Homes with a VA Loan

Although the cost of a multi-unit inspection may be tempting to pass on, borrowers should have an inspection done on the property during escrow. Having an inspection will provide information on any issues with the property, which can help you make an educated decision on your purchase and may assist with price/contract negotiation.

Using your VA loan to purchase a multi-family property is a great start or addition to your investing journey. Once you PCS to another duty station, you can rent out all units to generate more income. You can quickly build your portfolio and have less financial risk–it’s a win-win!

This article originally appeared on Active Duty Passive Income. Follow them on Facebook.

Articles

Navy puts plans to buy more ships and planes on hold

The Navy’s 2018 budget request is out – and it looks like more new ships and aircraft are going to be on hold for at least a year. However, if this proposal holds up, the recent trend of short-changing training and maintenance will be reversed.


According to a report by BreakingDefense.com, the Navy will get eight ships: A Ford-class aircraft carrier (CVN 80, the new USS Enterprise), two Arleigh Burke-class guided-missile destroyers, a littoral combat ship (or frigate), two Virginia-class submarines, a salvage tug, and an oiler.

Aircraft procurement will include two dozen F-35B/C Lightning II multi-role fighters and 14 F/A-18E/F Hornets. Despite reducing the F-35C buy by two aircraft, the Navy still expects to be on pace to achieve initial operating capability with the carrier-based variant of the Joint Strike Fighter in 2019.

Top 9 VA Loan benefits
The Arleigh Burke-class guided-missile destroyer USS Stethem (DDG 63) receives fuel from the fleet replenishment oiler USNS Rappahannock (T-AO 204) during a replenishment-at-sea in the western Pacific. (U.S. Navy photo by Mass Communication Specialist 3rd Class Kelsey L. Adams/Released)

The big focus on the fiscal 2018 budget, though, is restoring readiness. The Navy is getting a $1.9 billion increase in a category known as “Other Procurement, Navy.” This fund is used to purchase new electronic gear, and more importantly, spare parts for the Navy’s ships and aircraft.

The biggest winner in the budget is the operations and maintenance account, which is getting a $9.1 billion boost to a total of $54.5 billion. This represents roughly a 20 percent increase, with no category getting less than 87 percent of the stated requirements. Most notable is that Navy and Marine Corps flight hours have been funded to “the maximum executable level” – breaking a cycle of shortchanging training.

Top 9 VA Loan benefits
A F/A-18E Super Hornet assigned to Strike Fighter Squadron (VFA) 115 conducts a touch-and-go landing on Iwo To, Japan. (U.S. Marine Corps photo by Cpl. James A. Guillory)

The Navy and Marines have been hard-hit with readiness issues, particularly in terms of aviation. Last year, the Marines had to pull a number of F/A-18 Hornets out of the boneyard to have enough airframes for training. The Marines also had to carry out a safety stand-down after a series of mishaps in the summer of 2016. Even after the stand-down, the Marines lost four Hornets from Oct. 1, 2016 to Dec. 7, 2016.

“We tried to hold the line in our procurement accounts,” Rear Adm. Brian Luther, the Navy’s top budget officer, told BreakingDefense.com. He pointed out, though, that under Secretary of Defense James Mattis, “the direction was clear: fill the holes first.”

MIGHTY MONEY

Guard to see changes in GI Bill transfer benefits

Provisions allowing Guard members to transfer some or all of their Post- 9/11 GI Bill benefits to their spouse or children are set to change, limiting the timeframe soldiers and airmen can transfer those benefits.

“You have to have a minimum of six years [in service] in order to be eligible to transfer benefits, and after 16 years you’re no longer eligible,” said Don Sutton, GI Bill program manager with the Army National Guard, describing the changes set to go into effect July 12, 2019.

The six-years-of-service rule isn’t new, said Sutton.


“You’ve always had to have a minimum of six years of service in order to transfer your Post-9/11 GI Bill benefits,” he said, adding the big change is the cutoff at 16 years of service.

“You’ll have a 10-year-window in which to transfer benefits,” he said, stressing that Guard members won’t lose the benefits after 16 years of service, just the ability to transfer them to their spouse, children or other dependents.

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Soldiers and airmen from the Arizona National Guard.

“The Post-9/11 GI Bill and the transfer of benefits are two entirely different and separate programs,” said Sutton. “Even though soldiers may be ineligible to transfer benefits, they still have the Post-9/11 for their own use.”

For those interested in transferring their benefits, an additional four-year service obligation is still required.

“The [transfer of benefits] is a retention incentive,” said Sutton. “It’s designed to keep people in the service.”

Being able to transfer benefits to a dependent may have been perceived by some service members as an entitlement, said Sutton, adding that was one of the reasons for the timeframe change.

“In law, transferring those benefits has always been designed as a retention incentive,” he said.

The exact number of Guard members who may be impacted by the change wasn’t available, said Sutton, adding that among those who could be affected are those who didn’t qualify for Post- 9/11 GI Bill benefits until later in their career.

“We do have a small population of soldiers who are over 16 years [of service] before they did their first deployment,” he said.

Some Guard members who may have earned the benefits early on, but didn’t have dependents until later in their careers, may also be affected.

“They joined at 18 and now they’re 15, 16 years in and they get married or have kids later on in life,” said Sutton, who urged Guard members who plan on transferring their benefits to do so as soon as they are eligible.

“If you wait, you’re potentially going to miss out,” he said.

Some Guard members may have been waiting to transfer the benefits until their children reach college age.

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Spc. Sabrina Day, 132nd Military Police Company, South Carolina National Guard, with her three-year-old son, Blake.

(U.S. Army National Guard photo by Sgt. Brad Mincey)

“There sometimes are some misconceptions that they have to wait until their kids are college age or that they’re high school seniors in order to do the transfer,” said Sutton, adding there is no age requirement to transfer Post-9/ 11 benefits to dependent children.

“As soon as a child is born and registered in DEERS [Defense Enrollment Eligibility Reporting System], you can transfer,” he said.

After that transfer has been completed, Guard members can still make changes to how those benefits are divided between dependents or which dependent receives those benefits.

“Once the transfer is executed, and you’ve agreed to that service obligation, you can add dependents in, and you can move months around between dependents,” said Sutton. “It’s just that initial transfer has to be done before you hit 16 years of service.”

However, there is one group of Guard members who will not be affected by any of the changes: those who have received the Purple Heart since Sept. 11, 2001.

“The only rule around transferring benefits that applies [to those individuals] is you have to still be in the service to transfer them.”

Regardless of status, Sutton reiterated that Guard members are better off transferring those benefits sooner rather than later.

“Transfer as soon as you’re eligible,” he said. “Don’t miss the boat because you’ve been eligible for 10 years and you just didn’t do it.”

MIGHTY MONEY

Finance Friday: 4 reasons why talking to a lender should be your first move

The idea of relocating immediately sparks a desire to jump online and start looking at houses. It is a natural curiosity to start visualizing where home will be. One late night jump down the rabbit hole of internet home searching will have you falling in love with the stainless steel kitchens, shiny polished floors, and before you know it, you’ll be itching to book a realtor and make this possibility a reality! What I’m about to tell you goes against everything in your gut, but I promise it makes sense to press pause.


Four reasons you NEED to talk to a lender first:

    Time is valuable

    Any realtor that values their time and takes their jobs seriously is going to ask you if you are pre-approved. A realtor will want to make sure they get you in front of homes that are within your budget and not waste time researching and showing homes that are outside of this range. A realtor also wants to make sure you’re in a financial position where homeownership is the right choice for you.
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    Be ready to jump on your dream home

    You want to have a solid pre-approval once you begin browsing homes. Some markets are more competitive than others. Especially here, you want to be financially ready to jump in with that solid pre-approval (and not a pre-qualification) to have your offer taken seriously.

    Solid financing=increased offer acceptance rate

    If you start a pre-approval before home shopping, you are better positioned for a quicker closing time, which makes for happier agents and sellers. Bonus points when your lender calls the listing agent when you make an offer to tell them that you have a full-document pre-approval, which is a reassuring sign that financing is not going to fall through.

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    Expectation management

    Once you start looking at homes online, if your price range drops, nothing will meet the same expectations that you had when you started imagining moving into those larger, fancier homes. To set the right expectations up front, it’s best to have an honest conversation with a lender about short term and long term financial goals.

    Once you start home shopping, there is a lot coming your way between contracts, inspections, addendums, moving boxes, and more. Taking the time to understand various procedures and costs ahead of finding your dream home will leave you less stressed and more confident in your choice. Having the right lender to be your partner in the process is key!

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    Meet this combat veteran turned rapper and music label executive

    This article originally appeared on Victory Capital. Follow @VCMtweets on Twitter.

    Economic harmony

    Raymond Lott is a decorated combat veteran. He spent 10 years in the Marine Corps as a war reporter and combat photographer. He earned the Combat Action Ribbon and an award for combat photography while deployed in Iraq. He is also a hip-hop recording artist, the CEO of Military Musician Platform, and owner of Ninja Punch Music.

    When Lott left the Marine Corp he felt lost. He recalls “thinking why am I here? Why am I doing this?” He started to feel that he didn’t have a purpose. Yet, music was a form of therapy that helped calm the noise in his head.

    Lott knew his savings would run out. He needed to get a job. But he spent the last money he had to buy a one-way ticket to LA.

    Once in Los Angeles, Lott didn’t have a place to stay and was out of money.

    “I was broke. I didn’t have any money. So, my last resort was to go to the VA.”

    The VA helped Lott get on his feet and helped him get into school. He eventually started earning money. The VA, Lott recalls, gave him the opportunity to focus on becoming the musician he set out to become. It put him on the path to financial stability. That allowed him the independence to be creative. It was his breakthrough.

    Lott learned about the music business. That’s when things started to happen for him. He started posting short music videos on Instagram. The following he gained in those viral posts helped him start making money as an artist. From there he crowdfunded his first album. It was the springboard to building his music business.

    Today, Lott publishes albums with other veteran musicians. He says it feels good to share their stories. But it takes money to make music. It takes money to run a business. That’s why having a financial foundation is so vital.

    Leveraging the resources of the VA helped Lott gain the financial foundation necessary to build a successful music business. And there are other resources available to veterans. That’s why he offers this advice.

    “Whether you’re looking to start a business or just get on your feet financially, those things are available for you. It’s out there. All you have to do is look…”

    Some examples include:

    1)      Veterans Entrepreneur Portal

    Offers training and employment programs, and information and access to various resources to start, finance, and grow a business.

    2)      The Small Business Administration’s Office of Veterans Business Development

    Provides training, counseling and mentorship, and guidance on how to sell to the federal government.

    3)      The National Veterans Foundation

    A charity dedicated to advocating for veterans and members of the guard and reserves. Services include crisis management and job referral.

    4)      Department of Defense Office of Small Business Programs

    Provides veterans interested in starting their own small business links to the type of public and private programs that can support those efforts.

    For more information and useful financial tools visit Victory Capital.

    This article originally appeared on Victory Capital. Follow @VCMtweets on Twitter.

    Articles

    WW2 fighter pilot and founder of Enterprise Rent-A-Car dies at 94

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    Jack Taylor, the founder of Enterprise Rent-a-car who served as a fighter pilot during World War II, died last week at the age of 94 according to an announcement made by the company.

    Taylor served as an F6F Hellcat pilot in the Pacific Theater during World War II, flying from the U.S.S. Essex and U.S.S. Enterprise (his company’s namesake). He was attached to Carrier Air Group 15, led by the top Navy ace of all time, Commander David McCampbell. CAG 15, which sustained more than 50 percent casualties during the war, was one of the most decorated combat units in the history of U.S. Naval Aviation. Taylor, who served as McCampbell’s wingman on several combat missions, was twice decorated with the Distinguished Flying Cross. He also received the Navy Air Medal.

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    Jack Taylor.

    After the war, he worked as a sales rep for a Cadillac dealership before getting into the leasing business with a fleet of 7 cars. His breakthrough idea was renting cars at places other than airports for those who needed an extra car around the neighborhood for whatever reason. His company, Executive Leasing, eventually became Enterprise. The company is among the world’s biggest rental car brands, with annual revenues at nearly $20 billion.

    Taylor also a philanthropist. Since 1982, he personally donated more than $860 million to a wide variety of organizations including Washington University and the symphony orchestra in his hometown of St. Louis.

    Years later, Taylor reflected back on how well his military service had prepared him for his business success, saying, “After landing a Hellcat on the pitching deck of a carrier, or watching enemy tracer bullets stream past your canopy, somehow the risk of starting up my own company didn’t seem all that big a deal.”

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