Military Loan Companies and the VA Loan, What’s The Difference?

Military personnel looking to borrow money need to know the difference between military loan companies and VA loans, and the difference is significant. In this article we learn what both are and how they are different. If you are active or inactive military looking to borrow money this information may help you. 

VA Loan

The VA loan is one type of military loan among a host of others, but the term “VA Loan” is misleading in that this type of military loan is actually not a loan, but rather a guaranteed entitlement from the Veterans Administration to the lender. The VA doesn’t do the lending, but instead says to a lending institution that it will back-up a portion of a loan for the purchase of a home or property to qualifying active and inactive military personnel. The VA loan always involves banks and/or mortgage companies and protects the lender should a borrower default. Also, the borrower is charged, by the VA, a percentage of the loan value. And, like with all lending agencies, the Veteran’s Administration may pursue the defaulting borrower to recover the entitlement that it paid to the lender.

Military Loan Companies     

Military loan companies on the other hand, although some

may make home loans, most are  geared to making personal loans which are made primarily to active duty or reservist personnel. These loans, such as the army loan, are available to help military personnel with such things as the purchase of furniture, bills, vacation and/or travel money, and even spending money. Let’s take a look at a few of these military loan companies.

• Omni Financial – This loan company will make loans up to $10,000 to any active duty military personnel, even those with troubled credit. Omni will lend money to the active duty soldier for practically any purpose, from spending money to money needed for the new baby, or even a computer. Soldiers interested in obtaining a loan from them can go to:  http://www.yesomni.com/loans/army

• Security Service Federal Credit Unions – This credit union provides not only regular type loans, but emergency loans up to $2,500 as well. All active duty and reservist personnel, for example, are pre-approved to receive a loan of up to $500 at a fixed rate of 3.99%, but must be paid back within twelve months. Soldiers needing emergency funding should go to:  https://www.ssfcu.org/Military/emergencyLoans.aspx

• Pioneer Services – This military loan company will lend money to active duty and career-retired whether they have a strong credit history or a problematic one. Loans are made from $500 to $10,000 with a manageable payment schedule of up to thirty-six months. Although the purposes for loans are narrower than other lenders the loans are available to all military ranks, as well as government employees with a G-6 or above position. Interested applicants should contact Pioneer at: http://www.pioneermilitaryloans.com/

• US Military Loans, Inc. – This lender services military and civil service personnel throughout the world with loans beginning at $1,000 if the applicant has a credit score of 700 or higher. Qualifying applicants must apply on-line and it will take up to forty-eight hours to receive confirmation of approval. It can then take several more days before the loan amount is deposited into the applicant’s bank account. If the soldier is in need of emergency funds or has problematic credit this is not a lender that can help. However, if you have good credit and have time to wait you can contact this lender at: http://www.usmilitaryloans.org/

In this article we discussed, in brief, the difference between the VA loan and military loan companies. We have also noted some key points about some of the military loan companies that will lend money to military personnel. We hope this information has been helpful.      

http://www.militaryloanadvice.com/va-loans/what-is-a-va-loan.php
https://www.ssfcu.org/Military/emergencyLoans.aspx
http://www.yesomni.com/loans/army
http://www.pioneermilitaryloans.com/
http://www.usmilitaryloans.org/