Veterans Loan Programs: Make the Most Out of It

One of the benefits that veterans can avail of is VA loans or small business loans. If you or someone you know served in the military, this type of loan might come in handy, especially when financing a purchase, getting a home, or funding your own business.

A VA loan is an awesome financing option because it offers a lot of benefits from no down payment and low-interest rates, to hassle-free requirements. Such benefits are deemed worthy for those who always gave up so much to maintain peace and order and defend our freedom. They all deserve a good home or business to look forward to once they have finished serving for our country.

You must take note that VA loan programs are not grants provided by the government but are still loans that require payment and follow the attached payment of interest and other charges. Unlike other loans, VA loans have lower interest rates than the usual standard loans. Moreover, most of it doesn’t require any down payment.

Thus, it is a cost-saving opportunity that can greatly help veterans who want to acquire homeownership. Interest rates for this loan around 0.5% to 1% lower than an FHA loan, saving you that much. VA loans have a lower interest rate because the Veterans Administration guarantees a part of every loan they offer.

Knowing some of the benefits you can get from Veterans loan programs, here are the types of the veterans’ loan programs you can make use of:

VA Personal Loan Options

There are alternative lenders offering small business term loans for veterans and members of the military. Some of those lenders even provide coaching and tips on how to maximize their loans. You can check one website that offers a guide by Mulligan Funding.

Usually, these lenders provide unsecured loans and low-interest rates depending on your credit history. But even if you don’t have a perfect credit history, you are still eligible for this type of loan. Aside from that, military dependents and spouses can also get financial assistance.

You can also make use of this type of loan for other purposes like buying a new car, paying off credit card or doing home improvement. Aside from that, some lenders give special rates and discounts for veterans.

VA Home Loans

VA loans usually comprise of home loans for veterans. It is one of the awesome benefits of being in the military. Home loan rates under the Veterans Administration program are lower than conventional loans. It is lower than usual because the Veterans Administration guarantees up to 25% of the loan. Thus, no need for a down payment or mortgage insurance.

Furthermore, VA home loans come with foreclosure protection. Veterans Administration has made a substantial contribution to the veterans’ community by keeping a lot of veterans risk-free during the housing crisis.

The unique thing about the veterans’ home loan is that it doesn’t just focus on acquiring a home but also home retention. The additional confidence and security it gives to veterans can help reduce the tension and stress they have undergone.

Native American Direct Loan Program

This type of loan is available for veterans who are Native American or whose spouse is a Native American.  Native American Direct Loan Program can provide you with the money you need to build, buy, or improve a home.

There is also an option through Native American Direct Loan that you can get a loan to refinance an existing loan so you can reduce your interest rate. There are requirements that you must provide to be eligible for a Native American Direct Loan. One of the main requirements is that you must be a Native American Veteran or a veteran who is married to a Native American.

Other than that, there are few documents you must comply such as credit standards, memorandum of understanding, valid VA home loan certificate of eligibility, etc. Just like other VA loan options, Native American Direct Loan does not require down payment, gives a low fixed interest rate for around thirty years, and limited closing costs.

Cash-out Refinance Loan

Tired of your existing loan terms? Veterans can now make use of a VA cash-out refinance loan to help you replace your existing loan with a new loan under different terms and conditions. For example, you want to make a cash out of your home equity into a VA backed loan, a cash-out refinance loan is just for you.

With cash-out refinance loans, you can get cash out of your home equity to make home improvements, pay off debt, operate your own business or other financial needs you want to make use of. To get a cash-out refinance loan, you need a certificate of eligibility as proof of qualification and other needed information.