Retirement Pay Calculation - Home Purchase

USN_1997

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Hello everyone! I’m a 23 year O3E in the USN. TDRL 100% for MH - currently on PTDY/terminal leave. I am closing on a home (Texas) and my loan officer is asking for a statement showing how much my retirement will be. I’ve given them my retirement orders, current LES and high-3 as well as the equation to calculate it. Has anyone been able to get something formal from DFAS in advance to show proposed retired pay?
 

RonG

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Hello,

Not to my knowledge. I noticed you did not mention VA compensation. It would seem you would have a VA rating if you are TDRL (Temporary Disability Retired Pay).

I just found an old post of yours: "I just got my results 2 weeks ago. Active duty Navy with 23 years in; rated 100% DOD and VA. TDRL solely because of mental health. Once re-evaluated, if no change you’ll go to PDRL. Expect TDRL at least 50% if found unfit. If you get PDRL,"

You apparently already know the computation of your retired pay, but just in case:
1. Your retired pay as a CH 61 retiree is average high three for base pay x 75% = Retired Pay
2. As a Ch 61 retiree, your retired pay at item 1 will be reduced by the amount of the VA comp you receive. You get to keep the residual if any.
3. Since you appear to be eligible for CRDP, 23 years AD x 2.5% = 57.5% longevity multiplier. Average high three base pay x 57.5% = longevity portion of retired pay.
4. CRDP will restore the longevity portion of the retired pay reduced/waived. If you have residual retired pay from the action at item 2, the combination of residual retired pay and CRDP cannot exceed the longevity portion of retired pay.

5. You will also receive your VA compensation.

Ron
 

USN_1997

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Yeah, the lender says they can’t use VA compensation yet because it’s ‘proposed’ and could change before it becomes effective. That’s why I was trying to find out about retired pay...
 

JoePlasm

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Might shop around for your lender then. We had similar issues shopped around and a local bank (vs national bank) was happy to use my DD-214 and 199 to verify the expected income on the VA website and DFAS pay tables (I gave them the links to make it easy). Their underwriter was satisfied it too. We're not doing a VA loan though, so you may be running into VA underwriter not allowing the VA % because it's proposed. Not sure what to do about that (short of not using VA).
 

MilitaryBlake

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Yeah, the lender says they can’t use VA compensation yet because it’s ‘proposed’ and could change before it becomes effective. That’s why I was trying to find out about retired pay...
That is not accurate for all things. If the "proposed" rating is a 100% P and T, you can still use that information for some loan purposes. We just used it to waive our VA lender fee (this is our third time usin gVA loan), and don't leave AD until Sept. (and therefore ratings will not be finalized until then) Have to sign and complete what is called a 3987 (VA form). If there are problems, call the Houston VA home mortgage line @ 8778273702. They helped us out immensely.
 

SFC H

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Hello everyone! I’m a 23 year O3E in the USN. TDRL 100% for MH - currently on PTDY/terminal leave. I am closing on a home (Texas) and my loan officer is asking for a statement showing how much my retirement will be. I’ve given them my retirement orders, current LES and high-3 as well as the equation to calculate it. Has anyone been able to get something formal from DFAS in advance to show proposed retired pay?

Does your MyPay show anything under the Verification of Pay Letter tab? EBenefits also has this option once compensation has been awarded.
 

USN_1997

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That is not accurate for all things. If the "proposed" rating is a 100% P and T, you can still use that information for some loan purposes. We just used it to waive our VA lender fee (this is our third time usin gVA loan), and don't leave AD until Sept. (and therefore ratings will not be finalized until then) Have to sign and complete what is called a 3987 (VA form). If there are problems, call the Houston VA home mortgage line @ 8778273702. They helped us out immensely.

Tgey got theVA funding fee waived; it’s the property tax exemption for 100% P&T in Texas that will have to wait on me to fully retire.
 

USN_1997

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Does your MyPay show anything under the Verification of Pay Letter tab? EBenefits also has this option once compensation has been awarded.

I called DFAS and they haven’t even seen my retirement orders, so Im still on active duty. They haven’t begun any retirement calculations...
 

SFC H

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I called DFAS and they haven’t even seen my retirement orders, so Im still on active duty. They haven’t begun any retirement calculations...

Hello everyone! I’m a 23 year O3E in the USN. TDRL 100% for MH - currently on PTDY/terminal leave. I am closing on a home (Texas) and my loan officer is asking for a statement showing how much my retirement will be. I’ve given them my retirement orders, current LES and high-3 as well as the equation to calculate it. Has anyone been able to get something formal from DFAS in advance to show proposed retired pay?


Anyway that you could send the retirement orders to DFAS?
 

Elementglt

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Tgey got theVA funding fee waived; it’s the property tax exemption for 100% P&T in Texas that will have to wait on me to fully retire.
Does the property tax in Texas have to be 100% P&T? I called a few county tax assessors (Victoria county, and Travis county) and all of them said 100% scheduler weather its P&T or not is acceptable. They also clearly stated that employment does not dictate the property tax being waived, only weather or not you are receiving 100% pay and have a 100% rating. I assume this is in place so that the person claiming the VA benefits does not use SMC to bump up their payment to the qualified level and not have the percentage, but the king's English is misleading (go figure). Just trying to plan ahead for myself, and any feed back is appreciated.
 

Elementglt

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Sec. 11.131. RESIDENCE HOMESTEAD OF 100 PERCENT OR TOTALLY DISABLED VETERAN. (a) In this section:
(1) "Disabled veteran" has the meaning assigned by Section 11.22.
(2) "Residence homestead" has the meaning assigned by Section 11.13.
(3) "Surviving spouse" means the individual who was married to a disabled veteran at the time of the veteran's death.
(b) A disabled veteran who receives from the United States Department of Veterans Affairs or its successor 100 percent disability compensation due to a service-connected disability and a rating of 100 percent disabled or of individual unemployability is entitled to an exemption from taxation of the total appraised value of the veteran's residence homestead.

also note I read this to the verbatim, prob thought I was a lawyer or a nerd. Either way this is what I am calling misleading and many sites such as Veterans United and Military.com state 100% rating=property tax waived. Huge deal for us when we start looking to buy as well. Thanks again
 
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