Government Impacts – WeVett

Government Shutdown Impact on VA Loans and Military Pay

Shannon Kaufman — Tue, 03 Oct 2023 21:04:46 +0000

Funding legislation for Fiscal Year 24 has been extended until 7 NOV – a big sigh of relief for everyone who had the potential to be critically impacted by a government shutdown.

Crisis is likely averted, unless of course, a 7-week extension isn’t long enough for all sides to come to an agreement.

Regardless, let’s take a look at the impact of a government shutdown, especially when it comes to housing and the VA loan.

How does a government shutdown impact active duty military?

If you are Active Duty you will still go to work, but things will be far from normal.

According to Department of Defense guidance, military personnel on active duty, including reserve component personnel on Federal active duty will continue to report for duty. Hundreds of thousands of civilian personnel who are not necessary to carry out or support expected activities will be furloughed. Service Members would also have to cover some work that is normally done by furloughed civilians.

Temporary duty travel (TDY) scheduled to begin after the shutdown occurs should be canceled.

Service members will not be paid on schedule unless legislation is passed to continue troop pay, which has been done in the past. Any pay missed would eventually be back paid.

Commissaries overseas would remain open, but stateside would close.

Elective surgeries and procedures in DoD medical and dental facilities would have to be postponed.

Will a government shutdown impact veterans?

Fortunately, Veterans receiving disability pay and Retirees would still be paid during a shutdown. Medicare and Medicaid would be unaffected. The U.S. Postal Service will also continue to run.

Will my VA loan be affected by a government shutdown?

Short answer, no.

The Department of Veterans Affairs guarantees VA loans, but does not fund them. Private mortgage companies actually fund the loan. If the government is shutdown and the VA is not functioning in its normal capacity, your ability to use a VA loan will not be affected.

However, if the shutdown is prolonged, it may affect a buyers ability to apply for a loan because income verification may be unavailable.

Practical tips for surviving a government shutdown

So what can you do?

Ensure your savings accounts are in order so that you are able to continue to pay bills without your normal paycheck. It’s wise to keep at least 3 months of expenses saved as an emergency fund, just in case.

You can also check with your local bank for any relief they may be able to provide.

USAA has a Government Shutdown Program that can provide you a one-time, no-interest loan equal to the amount of your net pay, from $500 to $6,000, designed to help with payment disruption (if you normally have your pay direct deposited into USAA.)

Other companies are also allowing credit card payments to be delayed, overdraft fees being waived, and payment plans set-up for various loans.

Although a shutdown is unlikely at this point, it’s important to recognize that military pay, although seemingly the most stable and consistent in the marketplace, is still vulnerable to disruption – and it would be wise to plan your finances accordingly BEFORE the next shutdown happens.

Air Force Delays PCS Moves

Shannon Kaufman — Tue, 11 Jul 2023 14:09:17 +0000

Yesterday, the Air Force announced the delaying of some PCS moves due to a shortfall in the budget.

Headquarters Air Force is reviewing all pending PCS orders for those with report dates of August 1st or later.

Some families will be allowed to move on a “priority basis,” but thousands of others will be delayed. The delay is expected to end in Fiscal Year 2024 which actually begins Oct. 1, 2023!

The rising costs of PCS moves and outdated funding projections for other large projects drove a massive funding gap of almost $200 million.

If you’re on an overseas long tour, you will also be affected. If your “Date Estimated Return from Overseas (DEROS)” is between October – December 2023, it is being extended to January – March 2024.

The Air Force Personnel Center will prioritize and authenticate orders for mandatory movers and requests on a case-by-case basis.

Beginning July 11, 2023, the Air Force is suspending the FY23 selective reenlistment bonus program, pausing the Aviation Bonus program that began June 6, and pausing the new Assignment Incentive Pay until the end of the fiscal year.

They are directing service members to the Total Force Service Center at (210) 565-0102 for specific questions.

We’ll continue to update as new information becomes available and we learn more!

For the full Air Force release, visit https://www.af.mil/News/Article-Display/Article/3453178/air-force-delays-some-pcss-bonuses/.

If you have questions regarding your home purchase or financing, reach out to us to discuss how the delay might affect you: hello@wevett.com

Military Household Goods Reform

Shannon Kaufman — Mon, 03 Jul 2023 16:45:58 +0000

Military Household Goods nightmares are *hopefully* coming to an end

BLUF (Bottom Line Up Front)

New $6.2 Billion contract aimed at improving military Household Goods (HHG) moves for service members begins phased implementation in September 2023

FAST FACTS

The soonest all domestic and international household goods and unaccompanied baggage shipments are expected to move under the Global Household Goods Contract is 2024 peak moving season… think: summer!

The contract is outsourcing the management of the moving process to the Houston-based HomeSafe Alliance.

U.S. Transportation Command will oversee the program, but the complete door-to-door household goods relocation transportation and storage services will no longer be managed by them.

FAST FACTS

1. The soonest all domestic and international household goods and unaccompanied baggage shipments are expected to move under the Global Household Goods Contract is 2024 peak moving season… think: summer!

2. The contract is outsourcing the management of the moving process to the Houston-based HomeSafe Alliance.

3. U.S. Transportation Command will oversee the program, but the complete door-to-door household goods relocation transportation and storage services will no longer be managed by them. 3.

The good news?

The contracted company will be held FULLY responsible for the moves, making someone accountable for when items are lost or damaged.

Why a new contract?

This is the first time in Department of Defense history that the moving process has been put under one contract.

The goal is to improve the PCS and relocation experience for service members, DoD civilian employees, and their families.

The expectation is that they’ll deliver quality, on-time packing, shipping, and delivery of your HHGs, provide modern, digital tools to track and communicate, and provide a quicker process for settling claims if items show up missing or damaged.

How does this affect me?

Once the contract is fully implemented, the way you schedule, track, and communicate about your move will be different. You will have one single point of contact for scheduling and conducting your military HHG move. Your local transportation office will remain your primary DoD contact, but HomeSafe Alliance will conduct your move!

Service members will have 24/7 support available, a secure mobile application to coordinate all phases of your move, point-to-point status updates via your mobile device including arrival, departure, and estimated delivery times, and there will be a larger pool of resources including trucks, storage, movers, and more, allowing for shorter transit times and on-time deliveries.

For more information, visit the U.S. Transportation Command’s GHC webpage at:

https://www.ustranscom.mil/cmd/ghc.cfm