Hello! Below is the weekly Financial Frontline Information for 10 August 2012. This information is to

provide you- the soldier, airman, veteran, retiree, family member or supporter of our armed forces

financial readiness information. It does not replace the advice of your chain of command, your legal

counsel or financial consultant. It does however, supplement, issues the National Guard Bureau finds

important.

♪♪♪ Our house in the middle of the street.....♪♪♪ Part 2 If you are a devoted, regular reader, you would know that this is a follow on from last week. If you’re not, well then, you ought to become a reader! You are missing out on some pretty interesting things. Unless you are in Afghanistan, fighting for our country, or running a JOC (for those non-Guard type people, that is a Joint Operation Center); well then you’re pretty much exempt. But for those of you with desk jobs, you can’t afford not to read! This is part two or our VA Guaranteed Home Loan

article. Last week we discussed what is a VA Home Loan and steps to a VA Home Loan and its Eligibility requirements; today, I will discuss the application procedure, costs, Loans for Native Americans living on Trust Lands, and answer some general Q&A that you might have. How do you, the veteran (or other eligible individual) apply for a loan? With an application! VA Guaranteed Home Loans are obtained by making an application to a private lending institution such as a bank, savings and loan or a mortgage company. Most lenders will have the forms and necessary

paperwork. If you have your COE (now, you forgot what that is right? COE is your Certificate of Eligibility) if you have that, you should present it to your lender when making your loan application because the lender will want assurance that you are eligible before accepting the application. However, a lender will undoubtedly discuss the possibility of making a VA Guaranteed Home Loan to you without seeing the certificate. You should not delay making an application to a lender for a loan for just this reason. To reduce the delays in the processing of the loan, you should be prepared to give the lender the following:

1. Your complete name and address 2. Your employee identification numbers for present and past employers covering a two year

period. 3. The location and account numbers of all checking/savings accounts. 4. Details about all open and recently closed debts and obligations.

Note: If a lender is unwilling to accept a Veteran’s application for a loan you should seek another lender! The fact that one lender is not interesting in making the loan does not mean that other lenders will not make the loan!

There are two ways a lender may process VA Home Loans:

1. On a prior approval basis

2. On an automatic basis

Prior approval processing is where the lender takes your application, requests VA to appraise the

property and verifies your income and credit record. All this information is put together in a loan package and sent to VA for review. If VA approves the loan, a commitment by VA to guarantee the loan is sent to the lender. The lender then closes the loan and sends a report of the closing to the VA.

If the loan complies with VA requirements, VA issues the lender a certificate of guaranty. Automatic processing is when the lender still orders an appraisal from VA but has the authority to make the credit decision on the loan without VA approval. The biggest difference between prior approval and automatic processing is the time it saves by avoiding the need to await VA’s approval before loan closing. Not all lenders have the authority to process loans on an automatic basis. Banks savings and loan associations and certain other lenders, such as mortgage companies that are

approved by VA have the privilege of processing VA guaranteed loans using the automatic procedure. Lenders approved to participate in VA Lender Appraisal Processing Program are generally able to expedite the processing of VA appraisals. Now for the costs. Veterans using the VA Home Loan Program must pay a funding fee. Veterans receiving disability compensation are exempt. The funding fee can range from 0.5% for Interest Rate

Reduction Refinancing Loans to 3.3% for Veterans who are subsequent users of the VA Home Loan Program. The funding fee may be paid in cash or included in the loan. Reasonable closing costs may be charged by the lender. These costs may not be included in the loan. The following items may be paid by the Veteran purchaser, the seller or shared: VA appraisal; credit report; loan origination fee (usually 1% of the loan); discount points; title search and title insurance; recording fees; state and/or local transfer taxes and survey. Closing costs may vary among lenders

and also throughout the nation because of differing laws and customs. No commissions, brokerage fees, or buy broker fees may be charged to the Veteran buyer. As for interest rates on VA loans they can be negotiated based on prevailing rates in the mortgage market. However, if interest rates go down and you still own and occupy or previously occupied the property securing a previous VA loan, you may apply for a new VA loan to refinance the previous loan at a lower interest rate without using any additional entitlement.

The VA also has a program for Specially Adapted Housing. Veterans who have specific service connected disabilities may be entitled to a grant from the VA for the purpose of constructing an

adapted dwelling or modifying an existing one to meet their needs. An eligible Veteran may receive a VA grant of not more than 50% of the cost of a specially adapted home up to a maximum amount determined by Congress. Eligible Veterans may receive up to three grants as long as the total amount doesn’t exceed the maximum allowable.

VA also has direct home loans that are available to eligible Native American Veterans who wish to purchase or construct a home on trust lands. If this applies to you, make sure that your tribal organization or other Native American group is participating the VA direct loan program. The tribe must have signed a MOU with the Secretary of Veterans Affairs which included the conditions governing its participation in the program. Apply for your COE. Decide on a home to buy and sing a purchase agreement or a contract with the builder to build the home. Make sure to include in the

contract a provision that makes the contract void if you are unable to obtain a VA direct loan. Contact your local housing authority or your VA Regional Loan Center to apply for a loan. An appraisal of the property will be ordered and you will have to provide information needed to verify your income and credit history. Close on the loan and move into your new house! If you are a Native American

Veteran interested in obtaining or improving a home on trust land, or know someone who is, it makes sense to look into the VA direct loan program as a good way to finance a home purchase!

Now for questions.. And answers. May a veteran pay off a VA loan before it is due? YES! It may be paid without penalty.

May the maturity on a VA Guaranteed Home Loan be extended to reduce the monthly payments?

YES! Provided the lender and Veteran want to extend it and the extension provides for complete repayment of the loan within the maximum period permitted for loan types.

If a Veteran dies before the loan is paid off, will the VA guaranty pay off the balance of the loan? NO! The surviving spouse or other co-borrower must continue to make the payments. If there is no co-borrower, the loan becomes an obligation of the estate. Protection against this may be obtained through mortgage life insurance which must be purchased from private insurance sources. Does the VA offer counseling to Veterans having difficulty paying their mortgage? YES! Even if the mortgage isn’t a VA Guaranteed Home Loan, they can call 1 -877-827-3702 to speak with a VA

financial counselor. Don’t forget, if you have ANY questions, don’t hesitate to contact the VA at 1-800-827-1000 or you can drop me a line. I want to thank my friends and Senior NCOs at the RRB, A Co 1st PLT with the NC ARNG for asking for

these tips to help their subordinate soldiers! This is how WE do it in the ARMY. Look out for each other! Lead by example.

Check your Credit Score…… HAS BEEN EXTENDED! In support of the National Guard Bureau, Financial Industry Regulatory Authority (FINRA), FINRA Investor Education Foundation (which is part of FINRA) has once again provided us with the opportunity to check our credit score and credit analysis free of charge. From now until September 2012, the new code is GAA8C3SU.

Go to http://apps.finra.org/myFICO/2/default.aspx and enter GAA8C3SU in the Financial Educator Code box. Fill in all of the required info. Remember, this is FREE. If there is a prompt to enter a credit/debit card number, it's the wrong place

on the wrong site. FINRA has provided this free access since July 2011. Many thousands of our Guard members find this valuable.

Also, FINRA has sponsored various ―How to‖ Video’s. Members of the FMAP team were invited to review these videos for content and applicability to the National Guard. They are great videos and appreciate all that FINRA has done to support our Nations heroes. Check out their website to view these videos at: http://www.saveandinvest.org/MilitaryCenter/P126000 THANK YOU FINRA and the FINRA Investor Education Foundation for this wonderful program and

supporting our service members! We are very fortunate to have such capabilities provided to our military families!

It’s the most wonderful time of the year….

I love summer. I love to water ski, go to the lake and bask in the heat. I simply love it. But when my

daughter was in elementary and high school do you know what my favorite time of year was? BACK

TO SCHOOL! I am doing the happy dance as I type this! No more whining about what’s not to do

outside (ever heard of making mud pies?). Ever know what it was like to be home when the street

light came back on? No more whining allowed! No more television at 2300! You have got to go to

bed! School is in session. Fa la la!

However, the reality was I was not fond of the many expenses that I had to incur. I wondered how

often would she really use that compass and why did she need it the first day of school? Where they

going to draw concentric circles their first day of school? Then there were the uniforms. She went to

elementary school in Oceanside California. They were on uniforms. I thought I loved that idea. But

can you tell me what 7 year old can keep a white polo shirt white? After a week, I think it replicated

something more polka dotted or that she was a contestant on Nathan’s Hot Dog Eating contest. Her

and ketchup just didn’t see eye to eye.

If any of this sounds like you, you’re faced with the purchasing of various school supplies, maybe not

just for one, but for multiple children. Maybe you moonlight as a teacher (another thankless job) and

many school districts do not reimburse our teachers for their supplies. How do we cut costs for this

most wonderful time of the year? Read on…

Does buying back to school supplies leave you feeling broke? It doesn't have to. Here are simple ways

to save money on all those back to school essentials.

Shop at Home First

Before you head to the store, take a walk around your house to see if there are any items on your

child's school supply list that you might already have. Things like rulers, pencil boxes, calculators and

backpacks do not need to be replaced each year, so don't be afraid to reuse last year's if it's still in

good shape.

Tip: Instead of buying pencils and pens, send your child back to school with the free ones that

businesses hand out (you know the ones that are currently taking up space in your junk drawer. This

does not suggest you take them from your office at work).

Shop Around

10-cent crayons, 5-cent folders, 50-cent binders – stores fight hard for your back to school dollars,

and that's great news for you. Watch the weekly sales circulars closely; then, cherry pick the best

buys from each store. Remember: Just because store X wants you to spend all of your back to school

dollars at their store, doesn't mean you have to; so get those 10-cent crayons, and get out.

Tip: Shop at a store that offers price matching, and you won't have to burn up extra gas to get the

good deals at other stores.

Take Advantage of Tax-Free Holidays

Many states offer tax-free holidays around the start of the school year. Find out if your state has one

planned; and if it does, be sure to take advantage of it. Shopping on the right day could take as much

as 10% off of your back to school tab

Wait out the rush

If you can wait until after Labor Day, most stores are eager to unload their leftover inventory at a

decent discount. This is especially true for some of those big-ticket items like backpacks or computer

bags. Even if you live in a school district that starts in mid-August, you may be able to convince your

student to pick a new backpack a couple weeks later . . . after checking out what all the "cool kids"

are carrying around this year.

Reuse, with flair

Some supplies have to be replenished, but many are still perfectly usable. There's no reason that

three-ring binder has to go in the trash if it still works. Even if it's covered with an assortment of last

year's stickers, it's amazing what a bit of adhesive paper and scrapbooking paper can do —

particularly when you put your kids in charge of the refurbishing.

Get the kids on board

If your children aren't into recycling and want everything brand new, try this: Appeal to their

mercenary side. Promise them a percentage of the money you've saved. For example, promising 10

percent back to a kid who then reuses a $5 binder, a couple of $2 folders and a $30 backpack earns

her $3.70 (enough for extra treats at the movies!) and saves you almost $35. You can promise this

bonus to younger siblings who agree to hand-me-downs they might otherwise shun — or even to older

kids who find great deals in the weekend flyers. Older kids might want a bigger percentage, so

remember: Every penny is still a deal.

Teamwork works in bulk

The downside to shopping in bulk is that, well, you get supplies in bulk. For most families, 10 reams of

loose-leaf paper is overkill . . . unless you team up with friends. If you can find a few families to join

in, bulk-shopping for school supplies can make sense — and save dollars.

Think outside the big-box-store box:

There's no reason that you have to go to an office supply store for school supplies. Dollar stores often

have great deals on what you need. Use cash instead of credit cards to pay for your back to school

supplies. Paying for supplies with cash allows you to keep an eye on your funds and to stay within

your budget.

Make them work for it

What do you do if you’ve set limits for buying specialty or high-end items, and your kids still clamor for expensive back-to-school items? Make them go to work.

Assign them chores, or send them out into the neighborhood, and make them earn the money for

these items. My parents did this to me, and I lived through the experience. It also made me examine,

in a very real way, how badly I wanted to buy some ―must-have‖ items. Most of the time, when I had

to spend my own money on something, or put my own hours into making enough money for a

purchase, I discovered that I didn’t really want the item as badly as I thought I did.

Final thought

Many people don’t want to think about back to school, especially in the midst of high summer.

However, back to school shopping can creep up on you and your family quickly, so it pays to be

prepared. The best way to save money is to start planning ahead of time, so you can take advantage

of every deal and coupon that comes your way.

Did you know?

On this day in 1861 the struggle for Missouri erupts with the Battle of Wilson's Creek, where a motley

band of raw Confederates defeat a Union force in the southwestern section of the state. Union General Nathaniel Lyon, who commanded a force of 6,400 soldiers near Springfield, Missouri,

was up against two Rebel forces commanded by Generals Sterling Price and Ben McCulloch. Although the Confederates were poorly equipped and trained at this early stage of the war, Price and McCulloch had a combined force nearly twice the size of Lyon's. But the impetuous Union commander did not want to cede the region without a fight, and so he planned an attack on August 10.

Lyon sent General Franz Sigel with 1,200 men to attack the rear while he struck the surprised

Confederates just after dawn. At first, the artillery barrage sent the Rebel camp into a panic, and the day seemed to belong to the Yankees. But Sigel mistook a force emerging from the smoke for an Iowa regiment, when it was actually a Louisiana regiment clad in similar uniforms since many of the Rebel

units were dressed in colors of their own choosing. The Confederates pushed Sigel back, and the tide turned against Lyon's force as well. In intense heat and humidity, the armies battled throughout the morning. Lyon was killed during one of the Confederate assaults, but the Union line managed to hold their ground. Although the Rebels withdrew from the field, the Union army was disorganized and running low on ammunition. Losses were heavy, with both sides suffering about 1,200 casualties. The Federals soon retreated to Springfield and then back to the railhead at Rolla, Missouri, 100 miles to the northeast. Southwestern Missouri was secured for the Confederates.

On this day in 1981, Pete Rose of the Philadelphia Phillies gets the 3,631st hit of his baseball career, breaking Stan Musial's record for most hits by a National Leaguer. The record-breaking hit came in a game against the St. Louis Cardinals, the team with whom Musial had spent his entire career, and the former hits king was on hand to congratulate Rose.

New General Trivia: 1. How many hits did Pete Rose have in his entire career?

2. Five countries have been represented at all Summer Olympic Games. Who are they?

3. Who was the only Olympian ever to be awarded the Nobel Peace Prize?

4. Who was the only person to have won gold medals in both the Summer and Winter Games?

5. Who was the oldest man to compete in the Summer Olympic Games?

6. Since the first modern Games in 1896, 10 sports have disappeared completely from the

Olympic schedule. What are they?

You must answer at least 5 of them correctly to receive a booklet “A Salute to Smart

Investing” and some sort of National Guard memorabilia.

For questions, comments or complaints, don’t hesitate to write us here at the National Guard. I strive to answer everyone timely - I’m human. Until next time…

Respectfully, Jennifer Jennifer Armstrong National Guard Bureau

J-1/Family Programs

111 S. George Mason Drive

Arlington VA 22204

Jennifer.armstrong2@us.army.mil