00:00:00 Speaker 1
Are VA ratings about to change because you followed doctor's orders? It turns out that the VA had to walk back a new rule after veterans pushed back.
00:00:09 Speaker 2
And did you hear about Congress proposing to raise VA loan fees? They say it will fund higher DIC payments, but will it make home ownership harder?
00:00:23 Speaker 1
Plus, in the business world, a vet certification goes live and outdated lending rules still choke veteran startups. We'll break down what you need to know and how to compete.
00:00:34 Speaker 2
Stick around as we review the latest headlines, connect the dots to your benefits, and share our own take on how these changes affect veterans today.
00:00:57 Speaker 2
Hello, welcome to" Prepare to Compete," where we talk all things VA benefits, real estate, entrepreneurship, and more. Kenneth Davis, how you feeling today, my brother?
00:01:07 Speaker 1
Oh, Ready ready ready And to talk about a lot of this business stuff, which is going to be actually fabulous. I am really actually excited on the things that we're going to be able to speak about today.
00:01:18 Speaker 2
Absolutely absolutely And. Now for the first topic. Of course, we want to talk about VA benefits, right? And. You know, a lot of policy changes have been shaking up the world of VA benefits, And I am still getting questions even though we're into May already regarding what's going on and you know what happened in February? And is that actually taking effect.
00:01:48 Speaker 1
Wow. Well, I'll tell you this is that most definitely not. Right, uh, the veterans again. You guys really made change. Um, you guys' voices was heard. Not only was your voice heard, The power of many actually overturned a rule that was put in place that was simply wasn't well, it wasn't well implemented. Uh, I would say but beyond that, it was uh pushed into position where unfortunately, many veterans.
00:02:22 Speaker 1
Didn't receive the updated news, so uh, but with that being said again, the rule does not apply. It is uh right now has been removedum and uh, frankly, it is regular VA benefits as normal.
00:02:37 Speaker 2
Absolutely. So, for those who didn't know it was a very controversial bill in legislation that went out regarding VA benefits and your rating and how. Taking particular medication and treatment may impact rating decisions. So, again, Veteran community has spoken quickly, let the VA know how they felt about it, and how this could have seriously impacted veterans and and change was made. And so we definitely appreciate that. And now if this would have really transpired, how would this actually have impacted veterans?
00:03:16 Speaker 2
Regarding their VA benefits, who were taking medications and things for their treatment?
00:03:24 Speaker 1
Great question. So, particularly once we you know I think we can only make assumptions, right? Because again, when we talk about the actual rule that was in place, It pretty much stated that you want to be rate, they want to be able to rate you okay. And provide a disability percentage based upon after. Medication or treatment has been completed, and what your limitations was at the time, right? However, there you know many disabilities wax and wane. Okay, Though they're chronic issues that are going on for again the extension of pretty much life. However, they wax and wane come and go. So. With that being said, ultimately, I would presume that um that the veterans will be required to be able to.
00:04:15 Speaker 1
Take that medication, see what the functional impact or limitations were, and now at that point, that's when they would actually receive a viable percentage.
00:04:26 Speaker 2
Now, Absolutely definitely. So we glad that some things were cleared up regarding those benefits there. And again, This is why it's so important for veterans to really speak up right because again, it makes it where change is possible. And this is why, Fighting for policy change is so important, And really voicing out things to legislative representatives regarding any future things that are on the ballot. And one of the things that they have on the ballot here, and not necessarily on the ballot, but it's been some CBO discussions regarding changes to the VA funding fee. And now when we're talking about the funding fee.
00:05:12 Speaker 2
They've actually made some great strides and initiatives to actually lower the funding fee, but they're thinking about making that funding fee increased again. Right, so right now if you are a first time home buyer, it is two point one five percent of the loan amount. They're talking about increasing that to two point four five percent. Okay and, Now, The reason why they are looking to do that is to see how it could actually help with funding some other programs, as far as DIC programs and other things there. So, Kenneth, what type of insight may you be able to provide on this topic here?
00:06:02 Speaker 1
No, this is phenomenal. I think right here is going to be able to provide access to a lot of veterans. In the home buying process, One thing I do want to make sure that veterans understand, and also know that, frankly, again, when we are going through the home buying process, Please, please, please make sure that frankly that you actually are discussing this with your lenders. Right? I know a lot of times when veterans are having opportunity to take the road of being able to purchase a home, the limitations.
00:06:36 Speaker 1
Our funding fees, right? Because that actually could again, uh uh not you won't be qualified, and that will actually get you or raise you above the loan limit that your or your actual loan amount, um based upon whatever home that you're buying. So with that being said, I will always um I will always make sure that veterans and also active duty. Uh service members are really really focused on being able to one offset that um. The VA funding fee, and there's many ways to do that. I think there's creative ways that your lender could be able to provide you based upon your loan amount. And your situation. So really ask those questions. Ask those questions on how we can either lower, get rid of, Or again, offset that VA funding fee that will currently be applied if you are not at least 10 percent again disabled for the VA with the VA.
00:07:34 Speaker 2
Now, absolutely Kenneth, because yeah, as you alluded to there, This doesn't impact service connected veterans at at least ten percent or more because service connected veterans don't already do not pay the funding fee. But, it really can potentially impact our active duty service members who are really maximizing a VA loan where they have. Purchase multiple homes with the VA loan, right? Because that funding fee is already higher. So I said it's two point one five percent for the funding fee on your first time utilizing that VA loan. Now, the subsequent is actually three point three percent, and they're actually considering going up one whole percentage point on those subsequent uses.
00:08:29 Speaker 2
To four point three percent of the loan amount, and that would just really be a huge change. I mean, we're talking about one percent of a five hundred thousand dollars house, right? So that can definitely make home ownership, which is already approaching unaffordable levels, even more difficult to obtain. And we're talking about this is for potential Active duty service member, you know, Maybe you've purchased a home at one duty station, and you need to purchase another home because you're being restationed somewhere else. Well, you don't want that to impact you, right? So, You know, the details in these bills are always very important because sometimes if we're getting the right support, there may be provisions that.
00:09:24 Speaker 2
Uh, prevent those different things, right? Because, there's already uh usually protections against uh funding fees and different things in regards to uh PCSing and and being on orders. And that side of that sort of thing already. So hopefully that stays in place. And I know we were kind of talking offline about it. And, there are some different kind of nuances where this may be beneficial again for. Those who are receiving the DIC payments in special monthly compensation, because from my understanding with the DIC program, it hasn't been receiving the COLA increases. So Kenneth, can you speak more to that side of things?
00:10:09 Speaker 1
Yeah, yeah. So anytime that we're talking about you know funding fees, one great thing about funding fees right we we are you know, Causing disruption or a financial impact uh on the veteran, uh, doing a VA loan or the active duty member? Or what have you. Uh but one great thing about that, it is going somewhere for use of again uh the military and veteran community. Right? So again, uh being able to assist with the DIC cola increase payments, right? Uh to make sure that uh that those surviving spouses and uh beneficiaries are able to receive benefits, which is phenomenal. Which is phenomenal. So we want to take that into consideration.
00:10:47 Speaker 1
Uh, secondarily, also the special monthly compensation. Um, So those monies are being kind of circumvented into the right places for the most part. Uh, but another thing I want to go in and speak about as well. One impactful thing was uh again, uh, was access to the VA loan uh for reservists. You know being able to shorten that timeframe and limitations, where, again, the military reservists could possibly um have access. Uh, to this benefit, but again, uh, this is all preliminary. Right? Uh, again we're just in the first stages of the introduction of the bills. But uh, but CBO is uh being able to uh really uh make these suggestions. Okay? Uh but again it's a Congressional Budget Office. Uh, they also make a different opinion suggestions in regards to implementing different programs to be able to optimize. Uh frankly, those current those current bills.
00:11:47 Speaker 2
Now, absolutely, Kenneth. And this why local policy matters, right? Because although this federal policy, A lot of these conversations are happening in local town halls and those sort of things. So definitely participate in those conversations. Allow your voices to be heard so that we could make sure that the right changes. Are taking place there. And you know, it's always good to keep the veteran community educated on what's changing, right? And if you want to make sure you're staying educated on what's going on, we have a newsletter. Okay, so definitely the information is on the screen. If you register, You will be able to join our newsletter and stay abreast of all of these different changes.
00:12:37 Speaker 2
We don't always get to film about all the topics, right? Because there is so many different ones. And our newsletter comes out twice a month, has a ton of resources and information. And, then our veterans for veterans community has a lot more resources for you as well and continuing to grow regarding full length courses of information and workshops that cover. A lot of these different topics to support uh growth and maximizing your VA benefits at length there, And of course, you still have the community where you could get support there regarding any real estate questions, VA benefit questions, and also questions regarding uh business and entrepreneurship and just general questions regarding um.
00:13:28 Speaker 2
Transitioning in yourself as a veteran because we want to be able to figure out ways to support you in every single facet of your lives. There, so you know, great talking, Kenneth. Um, anything else you want to kind of add to um? You know, we're heating up. We're kind of getting into the summertime here, And we're going to definitely keep making sure we're providing you with quality information and news. And really talking more in the policy sector because t here is been so many policy changes, and making sure that the veteran communities stay abreast of those.
00:14:06 Speaker 1
Yeah, no, our job here you guys is to make impact, make change, and also make sure. That the veterans that we serve is receiving everything they deserve. Okay, so with that, you guys again, please tune in, like share subscribe. We're here continuously. Join the community, Join our newsletters. So we can make maximum impact, not just for you for every veteran that we see.
00:14:33 Speaker 2
Absolutely life is a marathon prepare to compete. We're out peace.
