Thursday, March 5, 2015

The Popular Disabled Veterans Loans That You Need To Know

By Leslie Ball


It is normal for former military servicemen and women to get special treatment from their governments worldwide. In the U. S., they enjoy several benefits. The disabled veterans loans such as the federally-backed mortgages is a good example. The injuries incurred when in line of duty entitle the veterans to financial aid that is necessary to start, sustain, and grow a small business.

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.

Unlike any other advances, there are numerous advantages associated with home modification mortgages for disabled. The down payment can be as little as zero percent. In addition to this, the private mortgage insurance is not necessary. The interest rates are also very competitive and the pre-payment penalties are not part of the deal. They are also exempted from the VA funding fee and can benefit from grants targeting special accessibility modifications.

These are just two examples of many loans that are given to the disabled veterans with very good terms and conditions. It is a way of being grateful to the former soldiers for their contribution and sacrifices for the safety of the country.




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