During the summer, I am often trying to find fun low-cost activities to keep my kids busy and have fun as a family. This summer, I found out about an amazing offer to military families. An organization called Blue Star Families has an initiative with the National Endowment for the Arts that provides free admission to hundreds of museums all over the United States. I learned that this offer is open every summer from Memorial Day through Labor Day and that in addition, many museums continue to welcome military families at no cost throughout the entire year.

There is an easy to browse through list of participating museums at www.bluestarfam.org Museums that are part of the program simply require you to show a military ID and you get admission for the service person as well as all dependents. We live near Chicago and my family took advantage of admission to the Morton Arboretum, the Dupage Children’s Museum and the Chicago Children’s Museum. I was amazed at the generosity of the participating museums and we look forward to utilizing the program next summer as well!

In addition to the Blue Star Museums initiative, the Blue Star Family organization provides numerous resources for Military families. According to the website, the mission of the organization is to “Support, Connect and Empower Military Families.” The website truly should be utilized by all military families. There is an extensive list of helpful links and resources with all things related to the military. There is an outstanding list of national U.S. Companies that provide deals and discounts to military families. Another useful link on the website is a list of college scholarship opportunities available to members of the military as well as spouses and dependents.

In addition to the helpful resources, Blue Star families have several other amazing programs. Books on base is another recent Blue Star initiative that sounds fantastic. Through sponsors and donors, the organization is providing books and reading material to military children living on post, or attending schools that have a lot of military families. Individual families can request that their child be a recipient by going to Blue Star website. There is also a program called “Operation Appreciation” where letters can be sent to show appreciation to military members as well as families.

If you are a military spouse, you should definitely check out www.bluestarfam.org for resources and to start taking advantage of the excellent programs in place to support military families!

It is known that dealing with a deployment can be an huge source of stress on families. It is also commonly known that exercise is a fantastic way to reduce stress. So, it makes sense that going to the gym while your loved one is deployed can be not only be great for your body but it is a fantastic way to feel better about yourself and improve your mental health.

If you live near a military post, you can take advantage of the MWR (morale, welfare and recreation center). But if you are a National Guard or Reserve family, you may not have that option. But thankfully, the Department of Defense and the YMCA have partnered together in the YMCA Military Outreach program. YMCA’s throughout the United States and Puerto Rico are offering free memberships to National Guard and Reserve families while their sponsor is deployed. In addition, they offer free memberships to active duty families that relocate away from a military post during the deployment. In order to take advantage of this program, you simply show a military ID, a copy of deployment orders and bring the following form to your local YMCA: http://www.militaryonesource.com/Portals/0/Content/Forms/YMCAeligibilityform.doc.

With a free membership you can use all of the fitness facilities including the pool. Many facilities also offer rock climbing walls, outdoor field use and fantastic members only events. In addition, you receive the reduced member rate on all class and activity enrollment fees for yourself and your children. Another great feature of the YMCA is that they offer free childcare for up to two hours while parents work out.

During my husband’s most recent deployment I took full advantage of the YMCA program with my children. It truly made all of us happier to go to the Y a few times a week. I was able to take a break and do something good for myself by working out and my kids had a blast playing in the Kidzone. We all loved playing in the pool together and my kids were able to take swim lessons and join sports leagues. I truly believe that the distraction of having fun together helped all of us cope with my husband being gone. The YMCA Military Outreach program is outstanding and something that military families should take advantage of!

This is a guest post by Robert Stretch of VA Benefit Blog.

Military veterans and active duty service members have long reaped the benefits of an easy mortgage process, thanks to the Department of Veterans Affairs VA home loan program, which provides mortgages to veterans and active duty service members at low interest rates even if the borrower has a low credit score or little to no cash for a down payment.

However, thanks in part to a shaky economy and increased lending regulations, mortgages have become more difficult to obtain and subject to more intense financial scrutiny and it seems that VA loans have fallen victim to many of the same cutbacks as traditional loan programs.

Lenders will still be providing VA loans, even to those borrowers who take advantage of the zero down payment option, but the credit score requirements have gotten much more stringent in recent years.

Major lenders like JPMorgan Chase, Citigroup, and Bank of America typically do not provide VA loans to applicants who have credit scores below 610. Wells Fargo is even more strict, with a cutoff score of 600 (the average credit score for all borrowers is 750, while the average for VA loans is 700).

These credit score policies also apply to the Streamline Refinance program, which allows borrowers with a current VA loan to refinance into another VA loan with very little paperwork (and as a result, less money due to fewer fees, etc). However, for the first time, many lenders are requiring borrowers to pay for an appraisal during the streamlined refinance process, which costs at least $300. If the appraisal of the home results in a finding that the loan value is higher than the home value, the application will most likely be rejected.

As a result of the new trend towards tighter lending requirements, total VA loan volume has fallen in 2010 while the country’s overall loan volume has risen nearly 20%. While increasingly rigorous lending regulation is perhaps an inevitability following a period of “anything goes” lending as we saw in the early part of the decade, it’s important to note that the overall default rate for VA loans is lower than any other mortgage program at around 2.6% of all VA loans made, which indicates that perhaps VA loans do not represent the risk lenders believe they might.

Sources:

NY Times, Saving to Invest, Las Vegas Sun, Stock Markets Review, Provident Plan

This new policy officially went into effect in October but I’m finding more and more people who aren’t aware of it. Just recently, I sat in on a blogger’s roundtable that gave more information about the policy and also allowed us to hear personal stories from soldiers who had utilized the policy.

In the past, it was up to the command to grant leave to soldier who became a father. Now, there is a policy in place that grants the new dad (whether for the first child or subsequent children) ten days of non-chargeable leave. The leave must be taken all at once and within 45 days of the baby’s birth. Since this has been passed, it is no longer up to command whether it should be granted – it is guaranteed leave for a new parent.

If the father is deployed overseas when the baby is born and unable to return for the birth, then the soldier can still take 10 days of non-chargeable leave upon his return to the states. In this situation, the leave should be taken within 60 days of redeployment.

Also, its important to note that this policy applies to fathers of new babies. Female soldiers who give birth fall under different leave policies as well as military families who are adopting a child. Kudos to those who pushed for this new policy. It is definitely a step in the right direction and ensures all new fathers will receive the same amount of time with their new family regardless of their unit or command.

from June 2009 MTTA Newsletter

The new Post 9/11 GI Bill entitles soldiers to transfer their education benefits to their dependents if they choose. The GI Bill education benefits can be transferred to a spouse or child if the soldier meets certain conditions.

Eligibility

Benefits can only be transferred to dependents who are enrolled in DEERS (Defense Enrollment Eligibility Reporting System).

• The soldier must have served a minimum of six years and reenlist for an additional four years in order to transfer benefits to dependents.

Or

• If the soldier has served ten years and is precluded from reenlisting, he must serve out the maximum time he is allowed.

Or

• Retirement before July 1, 2010 = no additional service
• Retirement before August 1, 2010 = one year of additional service
• Retirement after August 1, 2010 and before August 1, 2011 = two years of additional service
• Retirement after August 1, 2011 and before August 1, 2012 = three years of additional service

Transfer of Education Benefits

The soldier must apply through the Army to be approved to have benefits transferred to dependents. This can be completed online. Visit the VA’s GI Bill website for more details and links.

Applying for Benefits

After the approval has been given by the Army, the family member who is receiving benefits needs to complete VA Form 22-1990e that is available on the VA’s website. This form can be filled out online and submitted or printed and mailed to the VA office corresponding to the school address.

On August 1, 2009, the new Post 9/11 GI Bill was introduced. It is distinctly different from the old Montgomery GI Bill programs.

One of the major differences for families is that it allows for the benefits to be transferred to dependents in certain circumstances. While this was also possible with the Montgomery GI Bill programs as well, it was even more limited.

The Post 9/11 GI Bill differs in these main ways:

• Tuition is paid directly to the school instead of to the soldier
• The amount of tuition benefit differs by state based on the highest tuition rates for public institutions in that state
• Soldiers receive a book allowance of $1,000
• Soldiers receive BAH at the with dependents rate for an E-5 (regardless of rank) based on the school’s zip code (not available to active duty)
• Benefits can be transferred to dependents more easily
• The $1,200 buy-in that was required in the first year of service is no longer a necessity

Soldiers who signed up under the Montgomery GI Bill can transfer their benefits to the Post 9/11 GI Bill. Be aware that this transfer is permanent and cannot be reversed. It is in your best interest to thoroughly compare benefits and payment amounts before switching to the new program.

For instance, if you are pursuing online classes only, you may not be eligible for BAH. In that instance, it may be better financially for you to stay with the old version of the GI Bill.

For more information on the Post 9/11 GI Bill (including how to sign up for it), visit the Department of Veterans Affairs website.

Buying a house at any time is a scary and exciting experience all rolled into one. It’s likely to be the largest purchase you’ll ever make so of course you want to be sure you are making the right decision in regards to your loan. The VA Home Loan Guaranty Service was set up to help military members achieve the dream of home ownership.

Conventional Mortgage Loans

Typically, a mortgage lender would like to see a 20% down payment made when you purchase a home. Not only does this help to insure the lender against fluctuations in market prices but it also means it is less likely you will just walk away from a house if you have invested your own money.

If you don’t have 20%, there are other loan programs available. But the majority of these require private mortgage insurance, otherwise known as PMI. Lenders typically require this because it helps to protect them from loss in the event of foreclosure. Basically, you are buying an insurance policy for the 20% that you are not putting down on the mortgage loan. The cost for this insurance is added to your monthly payment. Rates can vary based on your credit, mortgage amount and loan to value but can be anywhere from .2% to 1.75% (or higher) of your loan amount.

For example, let’s assume you are buying a $100,000 home. The bank would like for you to put down $20,000 (or 20%). If you can’t do that, you will pay PMI. We’ll assume your PMI rate is 1% or $1,000. The premium is divided up monthly so you would have to pay an additional $83.33 per month for this coverage.

VA Guaranty

When you use your VA home loan option, the VA is guaranteeing the down payment you aren’t making. In essence, it is replacing PMI. While you don’t have to pay monthly for this service as you do with PMI, there is a funding fee that is paid when you close on your home loan. The fee can be financed into the loan amount to limit your out of pocket expense.

Below is the funding fee chart from the VA’s website. The fee is based on the mortgage loan amount. For our $100,000 house with no down payment and first time use, the funding fee would be 2.15% or $2,150.

Other Considerations

When you are considering a VA loan, be sure to check with your lender about the closing costs and loan rates of a VA loan vs. a conventional mortgage loan. While not having a down payment is nice, if there is a large difference in rates, you may still be better off financially with a conventional loan with PMI. Your lender will be able to estimate costs for you to show the best option for your situation.

Visit the VA website for more frequently asked questions about VA loans as well as to find out if you are eligible for the program.

http://www.homeloans.va.gov/lgyfaq.htm

Each soldier is automatically enrolled for SGLI or life insurance. The automatic enrollment is for $400,000. A soldier can elect to have less coverage, in increments of $10,000, or to decline coverage all together, though this is not advised. If the soldier chooses less than the maximum benefit, he must do so in writing.

The premium is $.07 for every $1,000 in coverage. The premium is automatically deducted from his pay each month. It is up to the soldier to choose who the beneficiary or beneficiaries of the policy will be.

Spouses and children can also be covered under Family SGLI. The premium for spouses is based on the amount of coverage and the age of the spouse. Coverage for children up to $10,000 is provided at no charge. Additional information on family SGLI can be found at www.insurance.va.gov

It is important to note that this insurance coverage does not continue after the soldier is no longer on active duty. The soldier will, however, have the option to continue coverage under the VGLI program.

This is a quick overview of the benefits you can expect for your soldier as well as the benefits that your family can enjoy while he is in the Army.

Medical Benefits

Medical benefits in the Army are provided through TRICARE. In order to be eligible for TRICARE, you must be active duty, immediate family member of active duty, retired from the military, a family member of a retiree or a survivor of a solider who is not eligible for Medicare.

There are three types of programs under TRICARE:

Prime – where the MTFs (Military Treatment Facilities) are the primary source of healthcare. You must receive a referral to go to a civilian doctor. For active duty and family members, there is no charge (no monthly premium or co-pays).

Extra – a preferred provider option that saves you money over standard option. You will have to pay a deductible and co-payments and your provider choice is limited.

Standard – a fee for service option (old CHAMPUS system). There is no enrollment fee and you are enrolled automatically. You pay deductibles and co-payments. You may have to file you own claims but you will have the widest choice of providers.

Dental benefits are also available for free for the active duty soldier and for a small fee for the family. Learn more about the dental program and apply online at www.tricaredentalprogram.com.

Army College Fund and Montgomery GI Bill

The Army offers a maximum of $50,000 towards college tuition through the Army College Fund. With the Montgomery GI Bill, you will pay in $100 a month for the first 12 months to be vested in the program. Visit http://www.gibill.va.gov for more information. There is also an option to pay in an additional $600 and receive a kicker (more GI bill funds). Check with your education center about this option.

College Loan Repayment

The Army will payback up to $65,000 of qualifying college loan debt. You must choose between loan repayment and the GI Bill.

Retirement Income

The soldier can retire after twenty years and receive half of his base pay at the time of retirement. At thirty years, he will receive 75% of the base pay. The rate is figured at 2.5% for each year served.

Life Insurance

Your soldier will be covered by a $400,000 life insurance policy at the time of enlistment. A small monthly premium must be paid for this coverage.

Paid Leave

He will be eligible for thirty days of paid leave per year (accrues at the rate of 2.5 days per month).

Commissary and PX

The commissary is the grocery store on post and the PX is similar to a department store. You can sometimes find great deals on brand name merchandise in the PX. The prices in the commissary are generally lower than grocery store prices as well and items are tax free. You are expected to tip the “bag boy” at the commissary as they only work off tips.

Entertainment on Base

Each Army post differs in their offerings. Some posts have theatres, bowling alleys, golf courses, swimming pools, playgrounds, dinner clubs, arcades, etc. These services are offered for a small fee. Also, each Army post has a MWR (Morale, Welfare and Recreation) office that runs these programs. They also sometimes offer classes, festivals and sporting events.

Allowances and Extra Pay

In addition to his base pay, your soldier will earn a housing allowance (BAH) if he chooses to live off post. This allowance depends on where you live and if there are dependents. In many instances, single soldiers are not allowed to live off post until they reach a certain rank. All married soldiers are allowed to live off post regardless of rank. He will also earn a subsistence allowance (BAS). Single soldiers do not earn BAS as they are able to eat in the dining hall for free. Neither of these allowances is taxable.

If he has a specialty (such as being airborne), he can also receive extra pay each month for this. When he is deployed, he may also receive imminent danger pay, location pay and family separation allowance. Usually, all of his pay while he is deployed is tax-free. This is also true for any re-enlistment bonus if he re-enlists while deployed in a hazardous area.