There are many benefits given to veterans long after their service time is up such as medical care, money for continuing education, and so on. A lesser known advantage for veterans is the ability to acquire loans with lesser restrictions than the average citizen. Whether for business or for home, there are multiple options available.
For a home loan, the most common way for a veteran to secure financing is through the US Department of Veterans Affairs, or the VA for short. The idea of this department is to provide long-term financing for veterans or their surviving spouses so they are able to purchase a home with no down payment. Areas around the country are designated credit shortage zones and must be eligible for these types of loans.
Other major advantages of these types of loans are that they do not require mortgage insurance, and there is no minimum credit score requirement. These loans can also be acquired through private lenders, with the VA guaranteeing the loan, keeping the costs down.
One thing to note is that there is a one-time funding fee when acquiring a VA loan for the first time. With no down payment, the fee can be up to 2.15% of the loan but it goes down if the borrower decides to put money down.
There are also multiple options available for veterans seeking a commercial loan. A solid choice is to acquire a SBA 504 loan. The 504 loan program provided by the Small Business Administration is considered the best option for veterans who have a business, are looking to expand, or are trying to start a business. Advantages for these loans include the offering of long term fully amortized loans, low rates, and lower down payments.
A hyper-charged version of these SBA loans is offered in the SBA Express Loan Program. This loan carries the same benefits but can be approved in as little as 36 hours after the borrower submits the application.
Along with SBA loans are a mast pool of resources and agencies looking to help veterans get their businesses started. The Veteran Entrepreneur Portal is an online guide to help veterans get full access to federal services including financing. Veterans Business Services is another organization designed to help veterans acquire or develop franchises. They give veterans access to the SBA 7a and SBA Express Loan program.
Being a veteran opens a plethora of advantageous financing options. Even if veterans have little to no credit or money for a down payment, many federal agencies working with private lenders are willing and able to give them the guidance and head start they need for a better life.