Pages

Thursday, 5 March 2015

Take Advantage Of The Disabled Veterans Loans

By Leslie Ball


It is a common practice by democratic governments to give special attention to the retired soldiers. In case these soldiers are incapacitated in any way due to injuries picked from war or training, they deserve even better treatment and attention. A good example is the measures the U. S. Government has put in place to ensure that the welfare of the veterans who picked injuries in service are taken care of. The disabled veterans loans are examples of such measures.

The Patriot Express Pilot Loan Initiative was first launched in 2007 summer by the Small Business Administration (SBA). This is in the records of the Veterans Business Development. Through this program, over one billion dollars are available every year to finance the enterprises in which the vets have majority ownership.

Today, a number of financial institutions, including banks, lenders, credit unions and micro-finance institutions have registered to facilitate the Patriot Express loan which has gained popularity since it was launched. The SBA is not the lender in this case, but is just a facilitator, and acts as a guarantor too. This means that if interested and qualified, you submit your application to the lender of your choice, though the lender must be participating in the program. The participating financial institutions advertise their services, but the SBA can also be of a great assistance when trying to locate the best lender.

The terms and conditions are almost uniform across all participating institutions with only slight variations. For instance, the upper limit is pegged at $500,000 while the interest rate should be at most 2.25% above the rate of the Wall Street Journal listed seven-year loan. A lender is allowed to charge 1% more on $50,000 or less loan application or 2% for applications below 25,000.

The requirements are not restrictive; all that is needed is an eligibility certificate that the vet gets from the Veteran Affairs offices. In addition to this, the vet needs to document that he/she is receiving an honorable discharge. It is also a requirement that they have the ownership stake of not less than 51 percent of the business.

The time taken to process the loan request is not uniform across all institutions. It should, however, vary from 2 to 4 weeks after application. The SBA also needs about 36 hours for the final review of the application before the final decision is made. The Patriot Express loan is a very streamlined process which does require extra paperwork or documents and the few that are needed are usually provided by the lender.

The other common vet loan is the home modification loan that target to help them modify their home to suit their current physical condition. It comes with numerous advantages such as close to zero down payment, no need for private mortgage insurance, competitive interest rates, and no accompanying prepayment penalties. In addition to this, the VA funding is exempted.

The vets have numerous opportunities to help them cope with life after service. The disabled vets, for instance, need to upgrade their homes to be accommodating to their condition. Having sacrificed for the country, the vets deserve special treatment.




About the Author:



No comments:

Post a Comment