3 Types of Military Financial Loans for Active Duty Personnel

Military loans have several advantages over their civilian loan counterparts. Military loans usually have lower interest rates and down payments than other loan programs. You also may be able to get approved easier than you would otherwise. Here are a few different types of military financial loans for your consideration.

1. Small Business Loans

One of the best types of loans available for active military personnel is the small business loan. The Small Business Administration has one of the best programs out there if you want to start a business. The Patriot Express Loan Initiative is designed to help you get the money you need to start a business quickly. In most cases, you will be able to get a low interest rate between 2.25% and 4.75%. You will also know if you can get the money within 36 hours of applying. With this loan, you can potentially get your hands on up to $500,000 to start your own business or expand an existing one. This represents a major perk of being in the military. 

2. VA Home Loans

If you need to buy a house or refinance your existing loan, you should strongly consider VA home loans. The department of Veteran Affairs has a loan program set up that beats anything you can find in the market, as long as you are part of the military family. With this loan program, interest rates will usually be about 1% lower than the rest of the market. The government backs all the loans that go through this program, which lowers the risk for the lenders. With this lower risk, they can afford to charge you a lower rate for the loan. 

In addition to the lower rate, you should not have to make a down payment on the house either. You can get into a new house without any money out of pocket and have a smaller mortgage payment than you normally could with a traditional loan.

3. Debt Consolidation Loans

Combining all of your debt into a single location will help get it paid off faster and more effectively. When your debt is spread over several different accounts, you may have trouble choosing which account to pay off first. With a debt consolidation loan, you will be able to make one payment for all of your debt and possibly get it at a lower interest rate than what you are currently paying. There are many lenders that will give active military personnel a debt consolidation loan to help them take control of their financial situation. These loans can benefit you in many ways, and the military will get a discount in comparison to civilians that are shopping for this type of loan. 

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