What Are Veteran Loans?
Veteran loans are a type of mortgage loan offered to active-duty military members and veterans by the United States Department of Veterans Affairs. Veteran loans are available for veteran service personnel and their surviving spouses. They are backed by the federal government and issued through online private lenders.
Is the Veteran Loan a Good Option?
If you are a veteran, this type of loan is one of the most powerful options you can get in the US loan industry. Veteran loans come with a wide range of benefits, including no mortgage insurance, forgiving credit guidelines, $0 down payment, as well as the industry's lowest average fixed interest rate. To make the best financial decision possible, as a veteran, it is important that you go over all of your online loan options using a home loan specialist.
How to Apply for Veteran and Active-duty Military Loans
The application process for veteran and active-duty military loans is simple and straightforward. Although the process varies by lender, but if you follow through with the general steps below, you will be one step away from obtaining veteran and active-duty military loans in the United States:
Check your credit score
The first step in the loan application process is to check your credit score to determine whether or not you are eligible for veteran and active-duty military loans. Always aim for a credit score of at least 720 or 610 to increase your chances of getting approval.If you are in low credit score or no credit history, you can choose other online bad credit loans as alternatives.
Improve your credit score
After checking your credit score and you find that your score is less than 610, take steps to improve the score to enable you to receive the best terms possible. Some of the steps you can take to improve your credit score is to lower your credit usage or repay any debt you're owing to creditors.
Determine how much you need to borrow
The next step is to calculate how much you need to borrow from a lender and the potential interest during repayment. Do not borrow veteran loans for frivolities, ensure you truly need the funds before submitting an application form.
Shop for the best deals
While there are many lenders in the United States offering veteran and active-duty military loans, only a few lenders come with great deals. So take your time to shop around for the best rates without hurting your credit score. Also, compare different lenders along with traditional online lenders before making your final decision.
Submit an application
This is the last stage of the process. Once you find a suitable lender that offers you the best possible loan terms proceed to submit an application through their online portal. The loan application process may take a few hours or a few days depending on the lender that you choose.
Financial Resources for Veterans and Active-duty Military
Before personal loans, veterans and active-duty military members can access a wide range of information like financial assistance, resources, benefits, and specific programs. The following are a list of financial resources where veterans can access this information:
Veterans Families United
This resource is useful if you need information about financial assistance for veterans and active-duty military members. The programs featured in this resource include career counseling, financial support, recreational therapy programs to assistance for the wounded, housing assistance, as well as mortgage support and advocacy assistance.
Another useful resource to get information for veterans and active-duty military members is the USA gov. With this resource, you can get information relating to housing, healthcare, and education. There are also programs like job search, family support, and deployments. You can stick with this financial resource to be informed of the happenings in the American loan space.
The PenFed Foundation comes with lots of information for veterans and service members. You can also check this resource to get information for loans, grants, healthcare, and education.
FAQ ( Frequently Asked Questions)
1. What Credit Score Do I Need to Get a Personal Loan as a Veteran?
As a veteran, you need a credit score of at least 670 to be eligible for a personal loan. However, this score varies according to different lenders. So, before you apply for a personal loan, you need to work on improving your credit score. Additionally, there are special loans for veterans with poor credit rating. To be eligible for such loans, you must have a minimum of 580 in credit score.
2. Do Veterans Get Free Loans?
No, there are no free loans for active-duty military members and veterans. However, active duty military members and veterans can access interest free loans from some selected online lenders. With the interest free loan, veterans will only need to pay back the borrowed amount with no interest. Veterans and active duty military members are also eligible to access grants from the United States Department of Veterans Affairs.
3. Are There Any Grants for Disabled Veterans?
Of course, there are grants for disabled veterans. As a matter of fact, the US Department of Veterans Affairs offers a wide range of grants for serving members and veterans with disabilities. The grants are meant to help disabled veterans to either change or buy a new house. Some of the grants include Temporary Residence Adaptation (TRA) Grant and Special Housing Adaptation (SAH).
4. What Are Military Spouse Loans?
Military spouse loans are a personal loan for active-duty military members whose spouses are eligible borrowers. In other words, if you are a serving military member, your spouse is eligible for military spouse loans. Other eligibility requirements are flexible as far as the spouse has a good credit score.