Do armed forces members get massive credit/loan benefits?

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OutHouse

Lifer
Jun 5, 2000
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616
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i need in on the scam my BIL is doing. he served in the Navy and he sorta went crazy. Navy discharged him and gave him 30% disability. last year the disability went up to 100% and last weekend he came over driving a new jacked up Ford 350 King Ranch diesel and they bought a new house 2 years ago. I know for a fact does not work.

wtf?
 
Mar 15, 2003
12,669
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i need in on the scam my BIL is doing. he served in the Navy and he sorta went crazy. Navy discharged him and gave him 30% disability. last year the disability went up to 100% and last weekend he came over driving a new jacked up Ford 350 King Ranch diesel and they bought a new house 2 years ago. I know for a fact does not work.

wtf?

shit, i should have signed up after high school! I was just scared that I'd get shot from friendly fire because my brown ass looks just like the bad guys, probably during basic training!
 
Mar 15, 2003
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When I was in the ER once, there were 2 other people waiting - one was an Army recruiter, and the other was a kid in his senior year of high school. I listened to her talking to him; the kid didn't seem too bright. She convinced the kid that he would be living a glamorous lifestyle by joining the Army. Meals provided, live on base, you can buy a really cool car. Or, if you live off the base, they give you a housing allowance, etc. She kept bringing up guys she knew who had <really cool sportscars> and <really cool motorcycles.>

My assessment: the kid was an idiot - it was probably his best opportunity for a meaningful job. The recruiter: fantastic at her job. She read that kid like a book and knew exactly what to say.

that pitch would have worked on this kid in 15 seconds, it all makes sense. i always wondered why he signed up, volunteering his life away seemed unusually altruistic. the funniest thing is that he's turning republican! a baggie pants wearing poor english spikin' mtv house pimpin republican!
 

OutHouse

Lifer
Jun 5, 2000
36,413
616
126
home loan done via a VA loan is zero down, with closing costs typically rolled into the mortgage. As for the other toys, hard to say but looks like he may be setting himself up for financial problems. Unless he has "other" sources of income.

the VA does not give the loan, it guarantees a portion of the loan enabling the lender to provide you with more favorable terms. You must still qualify for the loan.
 

smackababy

Lifer
Oct 30, 2008
27,024
79
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so why do you assume he is making $30k-$35k?

Military pay is structured by rank and time in service. So, his rank is the wide range, and his time in service puts him in the lower range.

What OP doesn't take into account is he is also getting BAH and BAS, which can range from like an extra (tax free, as it is an allowance) $800 a month to $2500+, as it is calculated on cost of living in that area. It is likely his mortgage is being paid for entirely with this allowance.
 

KlokWyze

Diamond Member
Sep 7, 2006
4,451
9
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www.dogsonacid.com
To be completely honest, I've not met an armed service member that wasn't either a complete bafoon or had considerable mental problem, but usually had both, in 10 years.

Now I'm not saying all are. I've also worked relatively shitty jobs throughout my 20's and have only recently been working in decently paid positions. The only job I've met sharp service members was when I was temping at Northrup Grumman and it was full of the "good" ones.

This guy sounds like a retard. Forget about him. Move forward with your own life. Sadly, it's quite possible he would do well in many companies. Big talk typically gets bigger money. I've met countless great sysadmins that are so meek they just get used and abused. Don't know how to negotiate, etc.
 

JDawg1536

Golden Member
Apr 27, 2006
1,275
0
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They do not get any benefits, but it's definitely easier to get approved. Lenders know there's a steady paycheck guaranteed. When it comes to things like housing, I know a couple guys who buy and rent properties around bases to military members. If they have a problem with the tenant, they go up his chain of command and he gets an ass kicking. I don't know if it's the same with lenders, but it could be. We had repo men on base frequently.

He's screwed in the long run, so don't worry about it. Seen this a million times.
 

dainthomas

Lifer
Dec 7, 2004
14,616
3,471
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i need in on the scam my BIL is doing. he served in the Navy and he sorta went crazy. Navy discharged him and gave him 30% disability. last year the disability went up to 100% and last weekend he came over driving a new jacked up Ford 350 King Ranch diesel and they bought a new house 2 years ago. I know for a fact does not work.

wtf?

If he's at 100% disability then he's not allowed to work (at least where they could find out). Would guess he's doing something under the table to afford a house and truck, as even 100% is only something like three grand a month. About what you'd get from a crummy job, although it's tax free.

I'd give up my 60% disability in less than a heartbeat if I could get rid of my health issues. Not everyone on VA disability is scamming.
 
Mar 15, 2003
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To be completely honest, I've not met an armed service member that wasn't either a complete bafoon or had considerable mental problem, but usually had both, in 10 years.

Now I'm not saying all are. I've also worked relatively shitty jobs throughout my 20's and have only recently been working in decently paid positions. The only job I've met sharp service members was when I was temping at Northrup Grumman and it was full of the "good" ones.

This guy sounds like a retard. Forget about him. Move forward with your own life. Sadly, it's quite possible he would do well in many companies. Big talk typically gets bigger money. I've met countless great sysadmins that are so meek they just get used and abused. Don't know how to negotiate, etc.

Your 20s sounds like mine - one life sucking job after another, long hours and not a lot of pay. still in that rut and trying to break out of it. I felt like the guys on IT Crowd or Milton, the silent IT grumblers who can't sell themselves well so are stuck in the basement! It is jealousy when I see stupid people appear to be doing well, but it's an immature reaction for sure. To be honest I was worried he was funneling money from my parents (people who made their modest lifestyle through education and hard work), but the housing reimbursement programs means he has a lot of spare scratch and easy access to loans, makes sense.

Wait, is 30ish too late for a sudden burst of Americana pride?
 

MarkXIX

Platinum Member
Jan 3, 2010
2,642
1
71
A few other people hit the high points. The bottom line though is that if you make good use of all your benefits, even the low end of the pay scale can be good money.

http://www.dfas.mil/militarymembers.html

Soldiers who choose to live in the barracks (no rent or utilities), eat at the post dining facilities (low cost meals), etc., can make a pretty good living even on the low end of the pay scale. If they are authorized to live off post (it's not automatic) and they find a place that is below their housing allowance, they can pocket the extra.

As to being able to obtain loans easier, etc., yes, however, many lenders prey upon young, ignorant service members and charge them exhorbitant interest rates. Lenders know they have them by the short hairs because they can place a phone call to their commander and get their money. The military doesn't look kindly upon members that don't pay their debts as it puts them at risk of being manipulated or exploited for information. It is also not uncommon to get discounts at many places which is nice also.

Bottom line, if you play your cards right it can be a good living or you can completely fuck up your life and your credit.
 
Mar 15, 2003
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A few other people hit the high points. The bottom line though is that if you make good use of all your benefits, even the low end of the pay scale can be good money.

http://www.dfas.mil/militarymembers.html

Soldiers who choose to live in the barracks (no rent or utilities), eat at the post dining facilities (low cost meals), etc., can make a pretty good living even on the low end of the pay scale. If they are authorized to live off post (it's not automatic) and they find a place that is below their housing allowance, they can pocket the extra.

As to being able to obtain loans easier, etc., yes, however, many lenders prey upon young, ignorant service members and charge them exhorbitant interest rates. Lenders know they have them by the short hairs because they can place a phone call to their commander and get their money. The military doesn't look kindly upon members that don't pay their debts as it puts them at risk of being manipulated or exploited for information. It is also not uncommon to get discounts at many places which is nice also.

Bottom line, if you play your cards right it can be a good living or you can completely fuck up your life and your credit.

new york liberal me says "maybe the military is our true welfare state!" Don't worry, don't have the energy to get into that debate, and that trivializes the people who really did sign up for a reason and a cause. But, sheesh, is that a dangerous and slippery slope. My kia minivan's comfortable enough, and after a healthy down payment I have like a $8k loan on that (only really to build credit for small business ambitions, I really hate loans). I guess grass is always greener, but being relatively debt free (other than student loans) has it's positives, especially when the 2 kids need braces, or other life emergencies come up down the road. But, man, is that tv the hotness
 

MarkXIX

Platinum Member
Jan 3, 2010
2,642
1
71
Note that I didn't say that service members don't work for their money. There have been periods where I worked for 16-20 hours per day for weeks or months or more without a whole day off at any point. Think about how many times in your life you woke up and saw the sunrise at work and in the same day watched the sunset in the same 24 hour period. I've done it hundreds of times as an Army Reservist in my 20+ years.

Is it possible for complete idiots to succeed in the military? Yeah. There are far more people though that are smart, adjusted, hard working people who serve too.
 

MongGrel

Lifer
Dec 3, 2013
38,751
3,068
121
VA loans are nice, we bought our house with one long ago initially, but rolled it into others over time.

I doubt he would qualify while in, sounds he's got something on the side going or just running up debt, ya.

Barracks and the chow hall is always useful, why a lot of guys back when I was in had nice stereos, etc.

The chow hall was usually empty right after payday, and pretty packed just before, if you used it all the time, and I never thought the food was that bad, you can save money.

I joined the USMC for patriotic reasons at the time, the Hostage Crisis in 1980 was still going on, but got out after my 4 years.

Kinda wish I had stayed in some days, would have gotten a Sergeant promotion at the time and been retired by now, but I really wasn't a lifer type
 
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piasabird

Lifer
Feb 6, 2002
17,168
60
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Sometimes in the military when you sign up you might be able to get a signing bonus for say a 6 year contract.

I have also heard of people that work at supply depot's selling fuel on the black market making $5k a month, but mostly I hear of them getting caught. There is a lot of waste during a war . . . .
 
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smackababy

Lifer
Oct 30, 2008
27,024
79
86
Sometimes in the military when you sign up you might be able to get a signing bonus for say a 6 year contract.

Signing bonuses aren't as good as they sound. You get half the total amount lump sum and the rest spread out over the length of your contract. And, the larger ones ($20,000 and such) don't happen very often.


As for the guy in the OP, there is a chance he isn't racking up huge debt. He, in addition to the $35k a year, is getting another $12k+ tax free for housing and food. If he is stationed in somewhere ridiculous, he is getting a lot more. If he got a good deal on a single family home, even with under E5 BAH (ranks E1-4 all get the same BAH and it increases per rank after), he is likely able to afford it. The car is also probably a lease. So, outside of his rent and food, he has $35k a year (just under $3k before taxes) a month to spend on whatever.
 

OutHouse

Lifer
Jun 5, 2000
36,413
616
126
To be completely honest, I've not met an armed service member that wasn't either a complete bafoon or had considerable mental problem, but usually had both, in 10 years.

Now I'm not saying all are. I've also worked relatively shitty jobs throughout my 20's and have only recently been working in decently paid positions. The only job I've met sharp service members was when I was temping at Northrup Grumman and it was full of the "good" ones.

This guy sounds like a retard. Forget about him. Move forward with your own life. Sadly, it's quite possible he would do well in many companies. Big talk typically gets bigger money. I've met countless great sysadmins that are so meek they just get used and abused. Don't know how to negotiate, etc.

to be honest, your arrogant post makes you sound like a complete buffoon.
 
Mar 15, 2003
12,669
103
106
to be honest, your arrogant post makes you sound like a complete buffoon.

I know you're not referring to me, but I apologize if my pomposity seems targeted at all military personnel, I'm aware there are some tools and some stand up guys. I'm related to some of the standup ones, including a cousin who showed up with a desert eagle (registered, of course) 10 minutes after I told him I thought I was being followed in a shady hood. Stand up guy, every field has their rotten eggs mixed in with the noble.
 

Nograts

Platinum Member
Dec 1, 2014
2,534
3
0
Interesting, do privates leave with tons of debt?

Yes, he's a relative newbie, combat medic is his title but he's never seen any battlefield, never left the states actually in 2 years . he's not very bright but a big talker, so i bet he'll be making 6 figures in a few months

I would say a good chunk of them figure it out towards the end and leave with manageable debt if any. If they stay in they definitely figure it out. Some of course, get totally screwed, and they end up leaving the service. Debt will trash your ability to get a clearance. Just depends on the individual. Remember that your average private is an 18 year old fresh out of mom's basement, and nobody is none-too-smart at that point. When they leave they are big boys, and have a lot of life experience.

That's just the aggregate of course. There are outliers on each side.

Also, the VA loan is an amazing thing. It allowed me to be a home owner as a private with a manageable and decent loan with no PMI or anything else. Granted I am one of the outliers I spoke about earlier, and that property is now a rental property that makes me a decent chunk of cash. It was also my only VA loan.
 

pcgeek11

Lifer
Jun 12, 2005
21,513
4,607
136
VA loans. I also watched a buddy who served two tours in Iraq run up ridiculous amounts of debt thanks to the VA. It imo is a disservice to qualify these guys for loans that cant hope to pay back. My buddy is treading water making payments and he makes decent money.

It is the VA's fault your buddy is too stupid to control his debt? That is a stupid statement.

News flash: It is your buddies responsibility to control his own debts.

The VA doesn't loan money nor approve a loan. That is done by a mortgage provider. The VA only guarantees the loan.
 
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