U.S. military members transitioning out of service can find themselves facing many unique money challenges. After all, duty to one's country can understandably push personal money management to the back burner. Fortunately, there are steps veterans can take to secure the funding they need to achieve their financial goals.
Here are some tips for veterans looking to secure a mortgage, small business loan or other types of financing.
1. Know What Federal Benefits Are Available …
There are programs out there designed to help veterans and their families overcome the various money challenges that can arise when a family member is on active duty. For instance, veterans are eligible for VA home loans, which often feature no down payment, no mortgage insurance and flexible underwriting requirements. And there are various grants, loans and business development programs backed by the U.S. Small Business Administration that can help former military members and budding entrepreneurs.
Veterans can get acquainted with the general benefits available to them on the Veterans Benefits Administration website. Prospective entrepreneurs can begin looking into business financing by checking out the Small Business Administration's Office of Veterans Business Development online.
2. Research All of Your Options
That's not to say veterans should limit themselves to federal loan programs. For instance, when it comes to mortgages, "to be sure, VA loans aren't the right fit for every veteran," Chris Birk, a Credit.com contributor and director of education for Veterans United, a VA loan lender, said. "Understanding all of your mortgage options is also key to getting the best deal possible. Even veterans with sterling credit and a 20% down payment would benefit from comparison shopping between conventional and VA loans."
3. Consider Financial Institutions That Cater to Vets …
If you do decide to go for a VA loan to buy a home, consider finding a mortgage lender who knows the ins and outs of that type of financing.
"VA loan market share has soared over the last decade, but it's still a niche product for many lenders and real estate professionals," Birk said. "Working with companies and professionals who know the ins and outs of VA loans can help ensure veterans get the most from this benefit."
Similarly, you can look into finding a credit card issuer or bank that caters to former and current military members. (We've got a list of some of the better military credit cards here to help you kick off your search.)