Personal Loans May Be Available to Veterans

[Feb 24, 2009.]

 

In today’s tough lending climate, many people are finding it next to impossible to find a personal loan.  However, veterans of the U.S. military may be eligible for personal loans.

One such program is through the Wisconsin Department of Veterans Affairs. Veterans, spouses of deceased veterans, and dependent children may qualify for loans up to $25,000. In some cases a remarried spouse or parent of a veteran’s child may be able to obtain a loan if it’s used for that child’s education. Full-time students may be able to defer up to $5,000 for five years while in school.

The program offers personal loans that are secured by a mortgage on the borrower’s property or with a guarantor. Borrowers must undergo a credit check and have at least 10% equity in their property to qualify. Depending upon their credit score, borrowers may qualify for low interest personal loans with fixed rates. The personal loans also don’t have any penalties for early payoffs.

In addition to low interest personal loans, veterans may also qualify for mortgage loans guaranteed by the U.S. Department of Veteran Affairs (VA).  No down payment is required for most of these loans, which can be used for purchasing homes, condos, and manufactured homes. VA loans can also be used for home repairs and improvements, as well as refinancing existing mortgages.

The VA doesn’t actually make the mortgage loans, but instead will pay for them if borrower’s default. That guarantee is what allows veterans to borrow without a down payment. In many housing markets veterans can qualify for a loan up to $417,000, but that limit may be higher in very expensive housing markets. Also, if a borrower doesn’t use the whole benefit, they can use the balance to purchase another home, according to the Los Angeles Times.

 

About Author:

Francine L. Huff is a freelance journalist and the author of The 25-Day Money Makeover for Women. She has appeared on a variety of TV and radio shows.