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.
The Small Business Administration (SBA), in the summer of 2007, launched the Patriot Express Pilot Loan Initiative as documented by the Small Business Administration of Veteran Business Development. In this initiative, over $1 billion are given every year to the businesses that are owned by the vets who are physically impaired.
The Patriot Express loan facilities are available from the participating financial institutions such as banks, credit unions, and lenders. The SBA works as a guarantee to facilitate the credit advances to the veterans, but it is not the lender itself. As such, the interested and qualified vets are required to apply directly to the chosen participating lender. Normally, the lenders advertise their services and can be contacted in this way. However, the SBA is also willing to help the vets locate the lenders that are close to their area and make a choice from the many available options.
Though not identical across all the lenders, the terms and conditions are similar. The maximum limit for the special need vets $500,000. The upper limit of the interest rate has been restricted to 2.25 percent above the rates for seven years or fewer loans as listed in the Wall Street Journal and is closely monitored and regulated by the SBA. However, for less than $50,000 loan, the lender can charge one percent and two percent for a loan that is less than $25,000.
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 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 modification loans are the other example. They target to help the vets modify their homes to accommodate them in their current disability state. This facility has numerous advantages including no or very little down payment, no need for private mortgage insurance, very low-interest rates and no pre-payment penalties. It is also exempted from the VA funding fee.
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.
The Small Business Administration (SBA), in the summer of 2007, launched the Patriot Express Pilot Loan Initiative as documented by the Small Business Administration of Veteran Business Development. In this initiative, over $1 billion are given every year to the businesses that are owned by the vets who are physically impaired.
The Patriot Express loan facilities are available from the participating financial institutions such as banks, credit unions, and lenders. The SBA works as a guarantee to facilitate the credit advances to the veterans, but it is not the lender itself. As such, the interested and qualified vets are required to apply directly to the chosen participating lender. Normally, the lenders advertise their services and can be contacted in this way. However, the SBA is also willing to help the vets locate the lenders that are close to their area and make a choice from the many available options.
Though not identical across all the lenders, the terms and conditions are similar. The maximum limit for the special need vets $500,000. The upper limit of the interest rate has been restricted to 2.25 percent above the rates for seven years or fewer loans as listed in the Wall Street Journal and is closely monitored and regulated by the SBA. However, for less than $50,000 loan, the lender can charge one percent and two percent for a loan that is less than $25,000.
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 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 modification loans are the other example. They target to help the vets modify their homes to accommodate them in their current disability state. This facility has numerous advantages including no or very little down payment, no need for private mortgage insurance, very low-interest rates and no pre-payment penalties. It is also exempted from the VA funding fee.
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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