What Kind of Military Loans Are Available in 2019?

What Kind of Military Loans Are Available in 2019?

Serving your country is one of the greatest sacrifices you can make. But, service members make far below typical workforce pay rates. Not to mention, military life introduces difficulties that civilians need not worry about.

That can sometimes lead to hard financial times for people who’ve served.

In 2013, VeteransPlus recorded over 170,000 calls from prior service members. They had one thing in common: dire financial straits.

Over the next few years, about 1,000,000 military members will reenter the civilian workforce. Many of those people will struggle to find consistent work. They may have disabilities that prevent them from working, too.

It’s fortunate that there are several military loans on the market to help them out. These loans provide financial relief military members and veterans desperately need.

Best Military Loans of 2019

Military life can be hard. Most of us try to ease that sacrifice for service members where we can. Lenders are no exception.

Often, the government backs loans that provide benefits to people with military service. These loans come with terms that work for active duty military and veterans.

They tend to make qualifying easier for applicants. Even if they have a history of bad credit. Service members may pay lower fees or no closing costs on the loan.

Here are some of the best kinds of loans for military service members and veterans on the market.

Personal Loans

Personal loans are one of the most flexible loan types available. They’re useful in almost any situation.

In a pinch, military members and veterans can get money when they need it from a personal loan. These loans are great for debt consolidation, auto repairs or home improvements.

Personal loans are especially good when you need cash fast. They take only a few days to close.

One of the best places to get a personal loan is from a military bank or organization. USAA and Navy Federal are two of the best banking options for service members.

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These banks know what people in the military need. And, they’ve created a banking solution around that lifestyle. They serve active duty and veterans, alike.

Personal loans usually carry higher interest rates than other loan types. Not so for people who’ve served in the military.

They can receive personal loans with low-interest rates. These military loans have backing from the Service Member’s Civil Relief Act. This program specifies rates and terms that ease financial stress for service members.

You can apply for secured or unsecured personal loans. The loan amounts and repayment terms for military service members are very flexible.

Poor or Bad Credit Loans

Looking to qualify for a loan but have imperfect credit? There’s a military loan for you, too.

Often, when you have poor credit you struggle to find a lender to qualify you. But, some military loan programs work with you, anyway. Despite your less than perfect credit score.

One of those programs is pioneer loans. Their program has served military members for over 80 years.

Poor or bad credit loans may have higher interest rates. But, when you’re in a difficult situation, it may be better to take the loan, anyway.

Auto Buying Programs

Need a new car? Like low-interest rates, up to 96-month repayment, and 100% financing? Then, you’ll want to look at the auto buying programs that some of those military banks offer.

Auto buying programs offer low auto loan rates to active duty military and veterans. Of course, the best rates go to people with great credit. Expect anywhere from 3% to 12%, depending on qualifying credit history.

Looking to buy a car while deployed? You can do that with an overseas auto buying program.

That program offers auto loans for those service members on deployment. Order a car and have it shipped stateside. Pick it up when you return home!

Veterans Home Loans

The VA home loan is one of the most well-known benefits that service members can get. It’s a loan guaranteed by the Department of Veteran’s Affairs.

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There are some great advantages to using the VA home loan. Here are the best features they offer.

  • No Down Payment for Qualified Service
  • No Closing Costs for Qualified Disabled Veterans
  • Mortgage Insurance Not Required
  • Easier Qualification Process
  • No Need for Perfect Credit
  • VA Allows Only 1% Origination Fees
  • Escrow Paid For by the Seller
  • No Cash Reserve Requirements

That’s quite a list of benefits. But, the home must meet the Department of Veteran’s Affairs inspection requirements. Those can be more strict than other loans.

There’s only one real catch with the VA home loan. You must meet military service eligibility requirements to use it.

You’ll apply for a Certificate of Eligibility from the Department of Veterans Affairs. Then, you can apply for a loan. Check to see if you qualify, here!

Military Student Loans

Veterans already get some pretty good education benefits. Most qualify for some version of the GI Bill. But what if the GI Bill isn’t enough to cover your degree plan?

While military education benefits are good, they only stretch so far. On average, the GI Bill lasts through about 4 years of schooling. But, some degrees take 6 or more years to master.

In those cases, there are military student loans to help bridge the gap. The Federal Student Aid office requires interest on these loans to be deferrable. Loans must also have rates below 6%.

Military Service? You’ve Got Options!

If you’re in the military or have served, you’ve got military loans to consider.

So, stop worrying and start applying!

They’re designed for your unique situation. Choose the one that’s right for your current financial needs. Then, make the call, today!

Looking for more answers to living a better life? We’ve got advice on other lifestyle topics, too. Check them out!