Loans for Military Veterans – Options and Where to Apply
You worked hard serving your country. While you might try to do everything right, there might come a time when you aren’t able to make ends meet and need a little financial help to get you through. If you are in need of a loan and are a military veteran, there are a couple of options available to you.
Understanding Veterans Loans
Finance for Veterans is no different from any other type of loan outside of potentially better terms and the main criteria of having served in the military to qualify. There are numerous personal and home loans available, provided by the government themselves, non-profits and other specialty lenders.
Types of loans include:
- Personal loans (emergency, consolidation, unsecure, short-term, etc.)
- Asset finance (car loans, motorcycle loans, boat loans, caravan loans, etc.)
- Home loans (refinance, purchase, VA loans, etc.)
- Business loans
Features of Veterans Loans
Veterans loans are designed to offer service members an affordable way to pay for an unexpected expense that might arise. Instead of being taken advantage of, the service members will receive a loan that is designed to meet their needs. Military loans care about the work that service members did and show their appreciation by giving veterans a loan that provides them with the financial security they desire.
- Lower rates
- Low to no fees
- Flexible approval criteria (bad credit)
- Quick approval
Military Veteran Loan Options
There are literally thousands of loan options available to active and retired military services men and women. Most financial providers throughout the country will provide some form of discount or specialized product for our countries veterans. Simply asking for a military discount will gain you access to these earned reductions. Below are some other popular lenders for vets.
VA Loans – This is one of the largest and most recognized government departments that provide veterans with both home loans and other financial benefits. Reviewing all their services and assistance can go a long way in reducing costs and accessing different financial assistance.
Military Credit Unions – As an example, the Navy Federal Credit Union is dedicated financial institution for the military and their families. They provide competitive products, especially when comparing against mainstream lenders.
GovLoans.gov – This is a directory, which provides detailed information across all government assisted loans, including those for veterans.
RebuildHope.org – If you are a vet in need of emergency financial assistance Rebuild Hope can assist. There primary service is for disabled OIF/OEF veterans and those in warrior transition units who are ready for medical discharge.
Coast Guard Mutual Assistance – For those who were affiliated with the US coast guard, the CGMA provides a range of financial assistance for both active and retired service personnel.
Military Connection – Is a comprehensive list of military resources for veterans and their families. In addition to information on loans and benefits, they also assist with employment, further education and housing.
Eligibility of Veterans Loans
Anyone who was a member of the military is eligible for one of these loans - although, there is generally a length of duty requirement. You will need to provide information relating to what branch of the service you were in and service dates to determine eligibility.
General requirements include:
- Credit score (depending on loan type, lenders like 620+)
- Prove income (employment, pension, SSI, investment income, etc)
- Length of duty
- Length of residency in current home (not always required)
- Official identification
How to Apply for Veterans Loans
The application process depends on the lender and loan type. Most will provide an online application form, which can be completed in minutes. Money can be deposited in the same day in some cases or a few days in others. Home and vehicle loans may require a bit more time.
*Note - If you are struggling with finances, a loan may not be the best option and can put you in a worse position. Consider alternative financial help for common borrowing situations: help with bills, help with rent, help with debt or speak to a Community Action Agency to discuss financial assistance options.
FAQs of Veterans Loans
Can I use the money for whatever I like?
Absolutely, unsecure personal loans can be used for whatever you want. If you are borrowing to pay for everyday living expenses like food or utility bills, there are better assistance options available. A loan will only put you in more debt and compound financial issues.
Are payments reasonable?
Lenders will work with you to make sure the payments fit into your budget. The goal is coming up with affordable payment options while still getting you the money you need.
Will I qualify with a bad credit score?
Speak to your lender about poor credit before applying. Many lenders will approve your loan, the rates and fees may be higher.