VA Loan Updates

LOS ANGELES — As election time approaches, both parties are waving the flag and trying wrap themselves in it. But some say proposed cutbacks in veterans’ benefits should shame both parties into putting veterans’ needs ahead of politics. NBC4’s Kelly Mack reported on one California Congresswoman’s efforts to do just that.

Following is a verbatim script from the on-air report.

GALE HULETT, VIETNAM VETERAN: The fees are going up and the co-pays are getting even larger.

KELLY MACK: Vietnam vet Gale Hulett is part of a marching team of other vets who, he says, are being shortchanged by the government - through the Veterans Administration

HULETT: The coverage is getting less and it’s just like eating away at our benefits. I could use some help for eye care and hearing and dental.

MACK: Pofilo Asales - another Vietnam era vet - is going blind in one eye because he says the VA has slashed services.

ASALES: They said well, this is the only way we can do something with your eye is if you lose sight in it completely - if you become blind in that, then we can do something. But they said it’s right now - we can’t do nothing.

MACK: Asales and Hulett are like millions of vets countrywide who say they worry about the erosion of VA benefits, especially under the VA budget President Bush proposed last February.

HILDA SOLIS, DEMOCRATIC CONGRESSWOMAN: He’s trying to say that he defends our soldiers, he’s gonna do everything he can, but yet when they come home there will be very little for them.

MACK: Democratic Congresswoman Hilda Solis represents Asales and Hulett and 19,000 other vets in California’s 32nd District. In a recent study she found that 100,000 veterans statewide could lose their VA benefits because of the proposed Bush budget cuts.

SOLIS: The budget that the Bush Administration proposed was to cut back at least in this first year under the veteran’s Administration about one billion dollars. It will have a devastating effect immediately, as well as on going. And what alarms me is that we have so many of our returning veterans from Iraq and from Afghanistan.

MACK: According to her study, the President’s budget would keep 30,000 California veterans from enrolling in VA care and would force 89,000 to drop out because of increased enrollment fees and a doubling of prescription co-payments

SOLIS: In fact their co-payments are expected to go up almost $250 for a veteran that in many cases in my district is on a fixed income. They can’t get their medicine and now they’re gonna have to come up with $250. Where is it going to come from?

MACK: Solis is preparing legislation to try head off some of these problems. But she says that existing strains on the VA system will only intensify with the return of overseas troops — coupled with the budget cuts and the increase in needy cases.

SOLIS: We’re gonna see a bigger backlog and probably more illnesses. We’re gonna see reduction in education, opportunities for many of these returning.

MACK: And for older veterans, she says, frustration with the VA will only increase.

ASALES: There’s no way to get hold of a doctor anymore. If you do not have an appointment he’s already booked.

HULETT: They need the promise, the coverage they were promised when they went into the military.

NBC4: Congresswoman Solis says the November elections may make possible a more bipartisan approach to fixing the VA system.

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Debt to Income Ratios, often referred to as “DTI’s”, are a key calculation used in the refinance, debt consolidation, and purchase mortgage application process. A debt to income ratio is arrived at by dividing your monthly debt payments by your pre-tax income. Debt to income ratios are finally used to determine how much money you can borrow, and a thorough knowledge of DTIs can help you get the most value from your refinance, debt consolidation or purchase mortgage transaction.

There are two different types of debt to income ratios which are used in refinance, debt consolidation or purchase mortgage underwriting, a Front End Ratio (or “Front Ratio”) and a Back End Ratio (or “Back Ratio”).

The Front Ratio is calculated by dividing the sum of your total monthly housing expenses, consisting of your mortgage payment including principal interest taxes and insurance as well as homeowner’s association fees, mandatory maintenance fees, common charges in a development and mortgage insurance if applicable.

The Back Ratio is similar to the front ratio, but on top of basic housing expenses the back end ratio also includes your other monthly debt payments, particularly consumer debt payments, into the calculation. Examples of monthly consumer debts are your credit card bills, automobile payments, personal or student loans, etc. Examples of items not typically included in a back end ratio would be life, health & car insurance premiums.

When your lender is evaluating your application, they are in fact trying to match your application with the lending criteria for the program which you want to see if you qualify for the loan. While there are many factors in determining how much money you can borrow and at what rate, debt to income ratio is amongst the most important. A good credit, conventional mortgage program will very often have a debt to income ratio requirement of 33/38 - front/back, meaning that your monthly housing costs should be less than one third of your gross income per month.

If you make $3,000.00 per month, that means the maximum mortgage payment you could qualify for under a 33/38 program would be $1,000.00 per month inclusive of principal interest taxes and insurance as well as other housing costs, and your will only be allowed a total monthly expenditure including mortgage, credit cards and other consumer debts totaling $1,140.00. That may seem very conservative, and it is. If you’ve ever been turned down by a brick and mortar bank for a mortgage refinance, debt consolidation loan or for financing a new home purchase, chances are it had something to do with your program’s low debt to income ratio.

Many modern lenders are not as concerned about the back end ratio at all and decide solely on the basis of the front ratio, and in the case of a veteran’s VA loan, their guidelines only concern the back ratio and ignore the front. FHA loans allow you to carry more consumer debt but with a higher income requirement, with a standard debt to income ratio guidance of 29/41 - front/back.

Progressive lenders now have programs with excellent rates which allow individuals to borrow up to 100% financing and in certain cases up to millions of dollars at even better rates than many of 33/38 programs, but which allow for a debt to income ratio of up to 55% or even 60% in some cases, whether you prove your income through tax returns and W2 forms or simply state how much you earn. These relaxed debt to income ratio criteria allow you to borrow more easily without the fear of rejection, and the better your credit and the larger your down payment in the case of a purchase or equity in the case of a refinance or debt consolidation the more relaxed these criteria can be. Debt consolidation programs can often make it much easier to qualify if you mandate that certain consumer debt accounts be directly paid off, thereby reducing your monthly consumer debt payments. Contact a nationally capable mortgage broker so that you have access to a wide variety of programs, and be honest with your loan officer about your earnings and debts and things will go smoothly. Remember, they want to get you the money you need, and will work with you to make sure that happens.

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The modern GI Bill pales in comparison to the 1944 legislation that took care of veterans and fueled postwar progress.

IMAGINE TELLING the members of an entire generation they could receive a free college education at any school that accepted them — Cal State, Harvard, the Sorbonne — courtesy of Uncle Sam. Throw in a monthly stipend and textbooks. After graduation, there are government-backed home loans, no money down — buy a house cheaper than renting. Throw in subsidized business loans, farm loans, job training, medical care and up to a year’s worth of unemployment checks.

What insane politician would ever propose such a costly boondoggle, such outright social engineering? It would be the most enormous, far-reaching, life-changing government program in the history of the world.

And so it was. We know it today as the original GI Bill.

Today’s unthinkable was yesterday’s matter of course. FDR and Congress adopted the humbly named Servicemen’s Readjustment Act of 1944 with bipartisan fervor. The stated goal was simple: to help 16 million veterans and their families resume their lives after the scourge of World War II.

But this investment in the nation’s future powered far more than a return to the status quo. It transformed the nation and the very nature of the American dream, opening up the colleges, raising suburbs out of bean fields, creating a new middle class and providing the medical, engineering and scientific prowess that conquered long-feared diseases, ushered in the Information Age and helped win the Cold War.

There was never anything like the GI Bill. There’s nothing like it on the horizon. And that’s a problem.

Today’s veterans are getting shortchanged. Instead of a full ride to any college, the modern GI Bill’s education support tops out at $36,000 for a four-year degree — barely enough to cover the average state university and well short of UCLA’s $19,500 annual tuition, room and board. Forget about the private colleges once covered by the GI Bill — $36,000 would pay for only a year at many of them.

Reservists and National Guard troops in Iraq receive even less — only 27% of the education benefits that regular troops receive. President Bush has opposed closing this gap, considering it a budget buster. Indeed, in a quest to minimize projected war costs, the administration used prewar statistics to craft its budget for another pillar of the GI Bill — healthcare. Now veterans hospitals caring for the wounded of Iraq and Afghanistan are $3 billion short.

But this is not simply a story of slighted veterans, scandalous as that may be. This is a story of a United States no longer investing it its future. The GI Bill was an engine of opportunity for all of us. It powered U.S. prosperity after World War II, turning a nation of renters into a nation of homeowners, transforming college from an elite bastion into almost an entitlement and making a tiny middle class into America’s leading demographic.

The “greatest generation” endured depression and war, but its members also ended up our most privileged generation, gifted with more government largesse than any group in history. More than 7 million veterans took advantage of the education benefits alone for college or trade schools. This proved a costly but sound investment: For every dollar paid out under the original GI Bill, there was a $7 return to the economy in terms of increased earnings, consumer spending and tax revenue, according to a 1988 congressional study.

Three presidents — George H.W. Bush, Gerald Ford and Jimmy Carter — dozens of congressmen, 14 Nobel Prize winners, giants of literature, Broadway and Hollywood and hundreds of thousands of teachers, doctors, nurses and businessmen got their starts with the help of the GI Bill. “Biggest piece of legislation the country ever passed,” says former Sen. Bob Dole, a war hero and GI Bill beneficiary. “Maybe we need something like it again.”

Which begs the question: What happened to the Washington that created something so magnificent? Why do we no longer expect — or demand — greatness from Americans’ joint enterprise, our government? In the 1960s, before Watergate and Vietnam, most Americans believed that their government usually did the right thing. Now we’ve accepted Ronald Reagan’s old formulation about the nine most dangerous words in the English language: “I’m from the government and I’m here to help.” How ironic that a member of the GI Bill generation would sell his countrymen on that idea. But it’s not a truism; it’s self-fulfilling prophecy. We expect our government to fail, and it meets our expectations.

The original GI Bill was powerful because it touched a whole generation, and the ripple effects washed over the entire nation, not just veterans. Today’s GI Bill reaches less than 1% of the population. It is no longer an engine for greatness, and Americans desperately need such an engine. We have always been the nation where the children can expect a better life than the parents; we no longer believe this is likely.

Before he died, FDR offered a solution that did not require a world war and a military draft. He proposed a program of national service, in which young people earned education, medical, housing and pension benefits. Not just veterans but all young people. It was, in essence, a peacetime civilian GI Bill — an investment in the future and in civic service. Polls suggested a receptive public, but the idea died with Roosevelt. President Clinton tried a modest resurrection with his AmeriCorps project. Much more is needed.

Would such a program be expensive? Absolutely — about what we’ve spent so far on the war in Iraq. But spending hundreds of billions at home to generate opportunities for future doctors, scientists, teachers, leaders and productive, healthy citizens would be a far sounder investment, with a proven rate of return. Where would you rather spend your tax dollars?

In an era in which college is a skyrocketing financial burden for many families, when homeownership is less affordable than ever, when the nation is losing its competitive edge in advanced degrees and when the American dream so generously nurtured after World War II is under siege, it is time to expect greatness from our government once again. Our children deserve it.

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WASHINGTON — As public support for the Iraq war declines, veterans are being tapped to display their patriotism and help military recruitment.
The Department of Veterans Affairs has asked veterans to wear their military medals publicly on Nov. 11, Veterans Day.

And the Army National Guard, which had problems reaching its recruiting goals from 2003 to 2005, has begun to deputize its military retirees to help recruit new soldiers. Under the program, recruiting assistants can receive up to $2,000 for each soldier they help enlist.

VA Secretary James Nicholson announced the medals program last week, saying it would help spark patriotic spirits.

“Wearing their medals will demonstrate this deep pride our veterans have in their military service and bring Veterans Day home to all American citizens,” he said. Nicholson is an Army veteran who served in Vietnam and was a former chairman of the Republican National Committee.

Local veterans had varied answers when asked whether they would wear their medals on Veterans Day.

Stanley M. Akita, a Kahala resident and 83-year-old World War II veteran, said he is against the push, especially if it is to gain support for the war in Iraq.

“I don’t think it’s really going to work among the World War II veterans,” said Akita, who is opposed to the Iraq war. He also said pinning his Purple Heart or other war medals to his aloha shirt would be inappropriate, and perhaps even disrespectful.

“If it’s going to a gathering and all the veterans wear a medal, it’s not too bad,” he said. “Just walking around with a medal in Kahala Mall, they’re going to say, ‘What’s wrong with that fellow?’ ”

‘SHOW OF PATRIOTISM’

Retired Marine Sgt. Maj. Bob Porter, who was on active duty for 30 years, and for the past 33 has worked at Marine Corps Base Hawai’i at Kane’ohe Bay, said he intends to wear his full uniform and medals on the holiday.

Porter disagreed that it’s disrespectful to wear medals pinned to aloha shirts, especially with veterans who cannot wear snug uniforms and do not belong to any veterans groups that issue group shirts.

Noting that his uniform issued in 1952 still fits, the 81-year-old Porter said, “I’m lucky. I’m in pretty good shape.”

Howard S. Okada, a veteran of the Korean and Vietnam wars, frequently wears a Korean Veterans Association shirt and medals to formal veterans-related functions at the National Memorial Cemetery of the Pacific at Punchbowl and elsewhere.

“It’s a show of patriotism. The medals are for valor and service,” Okada said.

IDEA FROM DOWN UNDER

In response to those criticizing the call to wear medals as a thinly guised effort to boost support for the war in Iraq, Okada, 77, said, “They’re obviously against the war and will look for any opportunity to say something about that.”

VA secretary Nicholson, who retired from the Army reserves, said he got the idea when he attended ceremonies April 25 in Sidney, Australia, which honored all Australian and New Zealand veterans. On that day, the veterans and surviving family members wear their medals and campaign ribbons.

But some veterans see the call for wearing the medals as an effort to shore up public support for the war in Iraq, which is becoming increasingly unpopular.

A CNN poll this month found that public support for the war has dropped to 34 percent compared with 64 percent who said they opposed it.

Garett Reppenhagen, a Washington, D.C., Army veteran who served a year in Iraq, said the call to wear the medals may be a response to anti-war sentiment gaining more momentum.

To Reppenhagen, the call to express patriotism by wearing the medals, “is an abuse of the American sense of values, patriotism and bravery because it’s a tactic to thump up some of the heroism that goes along with the war. It gives a false idea about what realities of warfare are today.”

Other veterans might consider wearing the medals a good idea but aren’t comfortable pinning them to civilian clothes.

William Willard, who served a year in Vietnam as a Marine Corps company commander, said he would not wear his medals unless he was wearing his uniform.

“I think they are a part of your uniform,” said Willard of Clarksdale, Miss., who was awarded a Navy Commendation Medal for valor, a Navy Achievement Medal and a Combat Action Medal, among others. “If I were still able to put my uniform back on … I would be pleased to have all my medals on it.

PERSONAL CHOICE

Some veterans groups, such as the VFW and Disabled American Veterans, are supporting the idea.

Joe Davis, an Air Force veteran who is a spokesman for the VFW, said that veterans don’t mind being recognized and thanked for their service, but they usually don’t go out of their way to draw attention to themselves.

Personal choice will be the deciding factor on whether they will wear their military decorations, said Davis, who received Gulf War Service medals, an Armed Forces Expeditionary Medal for Somalia and a Humanitarian Service Medal for Rwanda, among others.

Davis said he will not be wearing his medals, choosing instead to wear his VFW cap to a Veterans Day ceremony at Arlington National Cemetery.

Reppenhagen also said he won’t be wearing his medals on Veterans Day.

“I’m thinking about going over to the White House and throwing them over the fence, especially that stupid Global War on Terror Medal,” he said.

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Author creates book of encyclopedic info for troops and retirees.

When Johnny and Jenny come marching home from military service, they must first take a side trip through daylong sessions to learn about what’s expected of them as veterans.

More importantly, they get the lowdown on benefits due them for serving their country.
Booklets, pamphlets, papers by the pile, forms to fill out and a myriad of tasks form a final wall at the end of their military life — one last obstacle to mount and leap over into civilian living.

Once they’re over that wall, all those papers and booklets and such seem to get lost in drawers, thrown out or otherwise abandoned.

So where does the veteran turn to when he needs medical care?

How does she apply for a VA loan to buy her first home?

What about military discounts?

Can they take advantage of the GI Bill?

“Taking advantage” is the watchword in a book written by Christopher P. Michel, founder and president of the Web site military.com.

“The Military Advantage: A Comprehensive Guide to Your Military & Veterans Benefits” is a one-stop shopping encyclopedia for the troops — those still in the service, and those who have retired and moved on.

Local filmmaker and historian Lou Reda of Easton has supported the book.

“It’s already in its fourth printing,” Reda says.

It even offers special benefit updates for troops involved in Operation Iraqi Freedom.

“Comprehensive” in its subtitle is an understatement. Benefits and information potentially touching every aspect of a vet’s life can be found in the 389-page book. From money issues such as “military pay” and “dealing with debt” to “social services” and “the military child,” the book leaves few stones unturned when it comes to helping veterans, and those still in the service.

It’s not a page-turner in the tradition of the suspenseful and gripping tale found in “The Da Vinci Code.” And there are no photos. This book is an immense, how-to instruction manual, boring if read cover-to-cover.

The instructions, at first blush, are formidable. Every page is full of advice, with boxes containing additional info for each chapter.

In the book’s foreword, G. V. “Sonny” Montgomery, a retired National Guardsman and member of Congress from 1967 to 1997, authored the 1981 Montgomery GI Bill. He offers an example of why Michel’s book is important:

“More than 2.5 million people have used the Montgomery GI Bill to continue their education. But today only about half of those eligible for the GI Bill use it, and many other benefits also go unused — because veterans are not aware of them or do not know how to use them.”

Michel writes in his introduction that the book is an outgrowth of his Web site, which he created “with one mission in mind: to connect service members, veterans and their families to all the benefits earned in service to America.”

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Consumers and Realtors alike should be aware of how VA home loans work. As a former service member, I didn’t realize what a vital benefit I was receiving until I actually used my VA entitlement. I once believed when I was a young 18 year old in the service the following myths:

• You could not use your entitlement while you were still in the service
• You could only use the benefit once
• It was not good to use VA loan, conventional was better (Wrong Again)

The below questions and answers will help those looking for additional information on VA loans.

Q: How do I apply for a VA guaranteed loan?

A: You can apply for a VA loan with any mortgage lender that participates in the VA home loan program. At some point, you will need to get a Certificate of Eligibility from VA to prove to the lender that you are eligible for a VA loan.

Q: How do I get a Certificate of Eligibility?

A: Complete an 1880: You can apply for a Certificate of Eligibility by submitting a completed VA Form 26-1880, Request For A Certificate of Eligibility For Home Loan Benefits, to the Winston-Salem Eligibility Center, along with proof of military service. In some cases it may be possible for VA to establish eligibility without your proof of service. However, to avoid any possible delays, it’s best to provide such evidence.

Q: Can my lender get my Certificate of Eligibility for me?

A: Yes, it’s called ACE (automated certificate of eligibility). Most lenders have access to the ACE (automated certificate of eligibility) system. This Internet based application can establish eligibility and issue an online Certificate of Eligibility in a matter of seconds. Not all cases can be processed through ACE - only those for which VA has sufficient data in our records. However, veterans are encouraged to ask their lenders about this method of obtaining a certificate.

Q: What is acceptable proof of military service?

A: If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which identifies you and your social security number, and provides your date of entry on your current active duty period and the duration of any time lost.

Q: I have already obtained one VA loan. Can I get another one?

A: Yes, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property. In either case, to obtain restoration of eligibility, the veteran must send VA a completed VA Form 26-1880 to our Winston-Salem Eligibility Center. To prevent delays in processing, it is also advisable to include evidence that the prior loan has been paid in full and, if applicable, the property disposed of. This evidence can be in the form of a paid-in-full statement from the former lender, or a copy of the HUD-1 settlement statement completed in connection with a sale of the property or refinance of the prior loan.

Q: I sold the property I obtained with my prior VA loan on an assumption. Can I get my eligibility restored to use for a new loan?

A: In this case the veteran’s eligibility can be restored only if the qualified assumer is also an eligible veteran who is willing to substitute his or her available eligibility for that of the original veteran. Otherwise, the original veteran cannot have eligibility restored until the assumer has paid off the VA loan.

Q: My prior VA loan was assumed, the assumer defaulted on the loan, and VA paid a claim to the lender. VA said it wasn’t my fault and waived the debt. Now I need a new VA loan but I am told that my used eligibility can not be restored. Why?

Or,

Q: My prior loan was foreclosed on, or I gave a deed in lieu of foreclosure, or the VA paid a compromise (partial) claim. Although I was released from liability on the loan and/or the debt was waived, I am told that I cannot have my used eligibility restored. Why?

A: In either case, although the veteran’s debt was waived by VA, the Government still suffered a loss on the loan. The law does not permit the used portion of the veteran’s eligibility to be restored until the loss has been repaid in full.

Q: Only a portion of my eligibility is available at this time because my prior loan has not been paid in full even though I don’t own the property anymore. Can I still obtain a VA guaranteed home loan?

A: Yes, depending on the circumstances. If a veteran has already used a portion of his or her eligibility and the used portion cannot yet be restored, any partial remaining eligibility would be available for use. The veteran would have to discuss with a lender whether the remaining balance would be sufficient for the loan amount sought and whether any down payment would be required.

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Washington | The Department of Veterans Affairs has rejected the findings of a recent report warning that increased demands on its walk-in treatment centers could affect the quality of care.

“VA’s Vet Center program is the world’s leader in providing readjustment services to war veterans to help them reintegrate to a successful return to their communities,” the agency said in a statement.

The VA was conducting its own survey of workload and quality of care at the Vet Centers.

The report last week from the Democratic staff of the House Veterans Affairs Committee said demand had risen for outreach and other services at nearly a third of the centers because of the conflicts in Iraq and Afghanistan.

The VA created the network of treatment centers staffed largely by former combat troops, where veterans could seek help immediately for mental health concerns and other problems, in 1979 after the Vietnam war.

The report says the number of Iraq and Afghanistan veterans who have sought treatment for post-traumatic stress disorder doubled from October 2005 to June.

When he was asked about the report last week during a speech in Wisconsin, VA Secretary James Nicholson said the agency had enough money and staff to treat veterans’ mental health needs.

“We’re dealing with it with great excellence,” he said.

In its survey of 60 of the 207 Vet Centers, the report found that the centers needed more staff and that a quarter might have to cut services and create waiting lists.

The VA countered that “no vet center has a waiting list, and all veterans without appointments are welcomed and assessed within 30 minutes of their arrival.”

The agency said it had authorized three new centers and had been expanding 11 others since the Iraq war began. It also has hired 100 more war veterans - a 10 percent staff increase - as “outreach specialists.”

“Ninety-eight percent of all Vet Center clients have told us they are highly satisfied with our services and would refer a fellow veteran to a Vet Center if he or she needed help,” the VA statement said.

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What types of loans are available to me? There are many different types of mortgage offered to consumers. Some of the most popular mortgage broker are the FHA Home Loan (Federal Housing Administration) and the VA Loan . Because the FHA mortgage and VA mortgage are guaranteed by the government, borrowers are able to make a smaller down payment, and take advantage of more relaxed credit and asset requirements than traditional conventional loans.. Details about the major types of loans, including FHA mortgage and VA mortgages, follow.

Conventional loans generally are considered loans with loan amounts at or under the maximum loan amount available for purchase by Freddie Mac or Mannie Mae.

Fannie Mae is the common name of the Federal National Mortgage Association. Fannie Mae is a congressional chartered, shareholder-owned company that buys mortgages from lenders and resells them as securities on the secondary home mortgage market. Before approving you, Fannie Mae looks at a number of factors including credit ratings, debt ratio, and employment history.

Freddie Mac Freddie Mac is the common name for the Federal Home Loan Mortgage Corporation. The 2006 maximum loan amount for both Fannie Mae Mortgage and Freddie Mac company is $417,000. Freddie Mac does not issue mortgages directly, rather, they buy mortgages from lenders and resell them as securities on the secondary mortgage market. Before approving you, Freddie Mac looks at a number of different factors including credit ratings, debt ratio, and employment history.

Government guaranteed loans. FHA, VA loans.
An FHA mortgage (Federal Housing Administration) has some advantages over conventional mortgage. Since FHA Mortgage are insured by the government, they generally have more lenient qualification and requirements, lower down-payment requirements, and they may be assumable. The maximum mortgage amount for an FHA mortgage varies depending on the city where you live. As your mortgage broker on what these maximum amounts are for your specific city. FHA loans are very popular with first time buyers. They also make great sense if you are buying a multi family property to live in and want to get maximum financing. Mortgage insurance on an FHA loan is the same no matter what loan to value your loan is, something that is not the case with a conventional loan. High LTV’s pay a far greater insurance payment.

A VA (Veterans Affairs) mortgage carries many of the same advantages as an FHA home mortgage. However, to qualify for this mortgage, you must be a qualifying veteran, the unmarried widow of a veteran, or an active-duty serviceman. Talk with your mortgage broker on maximum loan limits, required down payments (if any) and what your funding fee will be. VA loans do not have a mortgage insurance payment, instead borrowers pay a one time fee for their “insurance” What percent of the loan amount varies, currently it will not exceed 4%. These are different than origination or discount points.

Non-Conforming / Jumbo mortgage are loans where the loan amount is greater than the conforming loan limit. $359,650 currently for a single family. So if you need to borrow $500,000 to purchase your new home, it will be a jumbo loan. Jumbo loans typically have interest rates slightly higher than conforming loans, about 1/2 percent higher. If you will be borrowing this much money you should ask your broker if you could split up your loan into a 1st. and a 2nd. mortgage to avoid needing a jumbo loan and avoid the increase interest cost.

A mortgage broker can help you find the best rate and product to fit your situation. Ask them about what are your options.

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Q: Based on one of your columns, I believe my sister should be receiving benefits from the VA. Her husband served in Vietnam and died 10 years ago from complications of type 2 diabetes. She lives in Mississippi. How can I assist her with a claim?A: Type 2 diabetes was added to the list of presumptive conditions from exposure to Agent Orange long after your brother-in-law’s death.

Based on the details you provided, his death should be rated as service connected. Your sister should be entitled to Dependency and Indemnity Compensation and all the other benefits for a service-connected death.

Provide me with where she lives in Mississippi, and I will contact the local veterans service office to provide assistance with her claim.

Q: I am currently using Montgomery Bill education benefits, and there is a chance I will be activated with my reserve unit. If I have to drop out of school during the semester, what will happen to my benefits?

A: If you are called up under federal authority, you have your benefits restored. If you are called up under state authority you will not have your benefits restored. You will need to provide a copy of your orders or a DD214 verifying service under federal authority.

Q: Is it possible for the widow of a veteran to use the VA home loan guarantee?

A: Only if the veteran’s death was rated as service-connected by the VA.

Q: I was awarded 50 percent disability as of December 2005, and I got lump sum payment from the VA to cover my disability from that date, and I have started to get a monthly check. However, the VA paid me as a single veteran, and I am married. I filled out the form to add my wife and sent it to them. Will they go back and pay me the difference from my award date?

A: You will get a lump sum for the difference between the single rate and the married rate, which in your case would be $67. You should have been getting $757 per month at the married rate instead of $690 at the single rate.

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WASHINGTON - A network of community-based walk-in veterans’ treatment centers is under increasing pressure as more and more former troops who served in Iraq and Afghanistan have come looking for help.

A report to be issued Thursday from the House Veterans Affairs Committee’s Democratic staff says that nearly a third of all Vet Centers have seen the demand rise for outreach and other services.

The report surveyed 60 of the 207 Vet Centers operated by the Department of Veterans Affairs. It found that the number of Iraq and Afghanistan veterans who have sought help for post-traumatic stress disorder (PTSD) doubled - from nearly 4,500 to more than 9,000 - from October 2005 through June 2006.

The number of veterans with other types of possible mental health and readjustment problems also doubled, and in some cases tripled, the report said.

Half of the Vet Centers sampled reported that their expanding caseloads have affected their ability to treat their current clientele.

“The administration’s failure to increase staffing and other resources for Vet Centers has put their capacity to meet the needs of veterans and their families at risk,” the report said.

“The Vet Centers’ staff are dedicated and deeply committed to meeting the needs of veterans and their families, but without additional resources, even dedicated staff has limits,” said Rep. Michael Michaud, D-Maine, the House VA Committee member who requested the report.

The study was obtained Wednesday afternoon and efforts to contact the VA for comment were unsuccessful. It was unclear when the VA received the report.

The report is the result of a confidential survey of Vet Center staffs. The committee’s Democratic staff contacted a sample of 64 centers in all 50 states, the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands. Urban and rural areas were represented. Sixty centers responded.

The centers, part of the VA’s Readjustment Counseling Service, were created in 1979 under then-VA Administrator Max Cleland, a triple-amputee Vietnam veteran. He later served one term as a senator from Georgia.

The centers were designed to be accessible, storefront clinics where veterans could be seen almost immediately by a staff largely composed of combat veterans.

Their core mission is to help veterans suffering from mental and emotional concerns. PTSD, which wasn’t even recognized as a medical condition at the centers’ founding, is the most widespread mental health problem experienced by soldiers in combat. It can cause nightmares, flashbacks, depression, survivor’s guilt and other types of anxiety.

Paul Sullivan, director of programs for Veterans for America, a veterans advocacy group, said the Vet Center report was disturbing but not surprising.

“We’ve been saying that VA is in crisis,” he said. “It shows that VA does not have a plan. This is additional evidence.”

The VA vastly underestimated the number of PTSD cases it expected to see this year, predicting it would see 2,900 cases. As of June 2006, it has seen more than 34,000 Iraq and Afghanistan veterans for PTSD.

A recent VA report shows that more than 1 in 3 Iraq and Afghanistan veterans who’ve gone to the agency for medical help report that they’re under stress or have mental problems.

A top Walter Reed Army Medical Center official told Congress last month that 41 percent of National Guard and Army Reservists reported mental health concerns up to six months after deployment, compared with 32 percent of the active-duty force.

Fifteen percent of the Guard and reservists were at risk for PTSD, compared with 9 percent of active-duty troops.