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 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.
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.
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.
The vets have numerous opportunities to help them cope with life after service. The disabled vets, for instance, need to upgrade their homes to be accommodating to their condition. Having sacrificed for the country, the vets deserve special treatment.
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.
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.
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.
The vets have numerous opportunities to help them cope with life after service. The disabled vets, for instance, need to upgrade their homes to be accommodating to their condition. Having sacrificed for the country, the vets deserve special treatment.
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