In the world over, it is a practice to give special treatment to retired military men and women. If they have any form of physical impairment that was caused by their duty of service, these treatments become even more necessary. A good example is the federal-backed disabled veterans loans in the U. S. It this financial assistance is aimed at helping the vets to sustain a comfortable livelihood. It can be a mortgage to build, modernize, buy, or improve a house to accommodate them in their condition or loan to start, grow, and sustain a business.
In 2007, the Small Business Administration (SBA) launched the Patriot Express Pilot Loan Initiative to help the vets acquire loans to run businesses easily. Over $1 billion are channeled to the veteran-owned enterprises every year under this project.
The arrangement is in such a way that financial institutions register for participation in the Patriot Express loan facilitation. The participants range from credit unions, banks, micro-finance institutions, creditors and other recognized lenders. The interested and qualified vet then approach any of the registered institutions and make application. The SBA, on the other hand, has the responsibility to facilitate the vet, work as a guarantor, and regulate the process. The vet can, therefore, approach the SBA to help locate the closest institution and also get relevant information.
Since the source of funds and the target are the same, the terms and conditions are also similar. For instance, a vet can only apply for a maximum of $500,000 at any given time. The interest charged is also not more than 2.25% over the rate charged on seven-year loan as listed in the Wall Street Journal. There are a few variations such as 1% addition to a loan that is below $50,000, and 2% for those under $25,000, all depending on the lender.
When it comes to the requirements, there are no restrictions; all you need is an eligibility certificate that confirms that you are a veteran. This certificate is given by the Veteran Affairs office. A document that shows that you are getting an honorable discharge is also required. Lastly, you need to prove that you own at least 51% of the business that you intend to finance.
The processing time for most lenders is standard, ranging from two to four weeks. The SBA, however, gets a chance for the final review before the loan can be advanced. The SBA has a turnaround time of 36 hours. Given that the Patriot Express program is a streamlined process, no special paperwork or additional documents are needed. The paperwork is owned by the lender that is participating in the program.
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.
There are several loan facilities targeted at helping the vets with the special needs to modify their homes to be more accommodating or help them start and grow a business. These are soft funding facilities with very low-interest rates and good terms. As a vet, you need to be on the constant look out and take advantage of these facilities.
In 2007, the Small Business Administration (SBA) launched the Patriot Express Pilot Loan Initiative to help the vets acquire loans to run businesses easily. Over $1 billion are channeled to the veteran-owned enterprises every year under this project.
The arrangement is in such a way that financial institutions register for participation in the Patriot Express loan facilitation. The participants range from credit unions, banks, micro-finance institutions, creditors and other recognized lenders. The interested and qualified vet then approach any of the registered institutions and make application. The SBA, on the other hand, has the responsibility to facilitate the vet, work as a guarantor, and regulate the process. The vet can, therefore, approach the SBA to help locate the closest institution and also get relevant information.
Since the source of funds and the target are the same, the terms and conditions are also similar. For instance, a vet can only apply for a maximum of $500,000 at any given time. The interest charged is also not more than 2.25% over the rate charged on seven-year loan as listed in the Wall Street Journal. There are a few variations such as 1% addition to a loan that is below $50,000, and 2% for those under $25,000, all depending on the lender.
When it comes to the requirements, there are no restrictions; all you need is an eligibility certificate that confirms that you are a veteran. This certificate is given by the Veteran Affairs office. A document that shows that you are getting an honorable discharge is also required. Lastly, you need to prove that you own at least 51% of the business that you intend to finance.
The processing time for most lenders is standard, ranging from two to four weeks. The SBA, however, gets a chance for the final review before the loan can be advanced. The SBA has a turnaround time of 36 hours. Given that the Patriot Express program is a streamlined process, no special paperwork or additional documents are needed. The paperwork is owned by the lender that is participating in the program.
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.
There are several loan facilities targeted at helping the vets with the special needs to modify their homes to be more accommodating or help them start and grow a business. These are soft funding facilities with very low-interest rates and good terms. As a vet, you need to be on the constant look out and take advantage of these facilities.
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