How To Get the Best Personal and Small Business Loans for Veterans

Reacclimating to society as a veteran can be difficult, especially when it comes to getting a handle on your personal finances. Fortunately, veterans have unique opportunities when applying for financial loans. Want to learn more about the best personal and small business loans for veterans? Read this guide! It breaks down veteran-specific personal and business loans and can help you find exactly what you need.

Feel Overwhelmed by Loans?

Readjusting to society as a veteran is difficult, especially when traditional banks are extremely hesitant to give out loans. Even when it comes to official channels like the VA, understanding finances can be confusing. Are you a former or current service member who feels overwhelmed by the prospect of getting a loan? We can help! Our guide can show you how to get the best personal and commercial loans for veterans!

VA Personal Loan Options

VA Direct Loans vs. VA-Backed Loans

Before we break down the specific types of VA loans available, we need to understand the difference between VA direct loans and VA-backed loans.

A VA direct loan is provided directly by the VA. Direct loans don’t require down payments but have higher fees than what you would get from the bank. VA loans can be used for a wide variety of purposes, although they are only for personal use. They can be used for:

  • Buying a New Home
  • Refinancing Existing Properties
  • Remodeling Existing Properties

A VA-backed loan is provided by an organization outside of the VA. The VA is involved by guaranteeing a portion of this loan, which makes it easier to qualify for borrowers who would otherwise be ineligible. VA loan entitlement is usually 25% of the loan up to a conforming limit. This limit depends on which U.S. county you’re in, but it most often caps out at $548,250.

Unlike VA direct loans, VA-backed loans may require a down payment, although this is uncommon. Additionally, there are more requirements associated with securing VA-backed loans. These requirements differ depending on the lender, but common criteria include:

  • Income
  • Employment History
  • Financial Stability
  • Your Type of Income

Now that we better understand the difference between a VA-backed loan and VA direct loan, let’s examine the specific types of loans the VA offers:

VA-Backed Purchase Loans

One of the best options for a veteran is a VA-backed purchase loan. VA-backed purchase loans have no down payment, low closing costs, and generous interest rates. Furthermore, a VA-backed purchase loan’s requirements are easy to meet. If you have a valid COE and meet income and credit requirements (and are a veteran), you can get this kind of loan.

Cash-Out Refinance Loan

This type of refinance loan lets you borrow money against the equity of your home. This money can then be used to refinance your existing loan or expenses like renovations, college tuition, or any of your other needs.

A cash-out refinance loan is especially helpful for paying off your conventional loans or other VA loans you’ve taken out.

Interest Rate Reduction Refinance Loan (IRRRL)

The final type of personal VA loan we’ll be discussing is an IRRRL loan. IRRRL loans let you refinance existing VA-backed loans, which can be used to swap your variable mortgage rate to a fixed rate. Switching your variable rates to fixed rates is one of the best ways to stabilize your long-term expenses.

Commercial Loans for Veterans

Unfortunately, the VA does not offer small business loans to veterans. This means that veterans can’t use the VA for any commercial purposes. However, there are still great opportunities for commercial loans for veterans:

The SBA Express Loan Program

The SBA Express Loan Program is a loan offered by the Small Business Administration to all small business owners in the U.S. This program offers regular and veteran business owners term loans and lines of credit up to $350,000. This money can be used for many business purposes, including:

  • Starting up a new business
  • Operational costs like buying new inventory or equipment
  • Purchasing of new business property
  • Refinancing existing debt

SBA Express loans are an extremely valuable program that can help veteran-owned small business owners take their business to the next level. SBA Express loan applications can get approved for financing in as little as 36 hours and offer extremely low interest rates and minimal fees.

Need Veteran-Owned Business Loans?

QualiFi can help you get the loans you need now.

Our 5–10 Year Loans

How To Qualify for SBA Express Loans

There are a few simple requirements you must meet to qualify for SBA express loans. You must:

  • Meet the SBA definition of a small business
  • Operate in the United States or a U.S. territory
  • Have reasonable equity ready to invest
  • Have invested financial resources into the business

After clearing these requirements, you’ll need to meet the individual lender’s financial requirements. These vary, but you’ll typically need to have been in business for two years, have a FICO score greater than 650, and show strong annual revenue.

Struggling With Financing? QualiFi Can Help!

Locking down financing for your business can be a challenge, especially if you’ve maxed out your existing line of credit or are waiting to hear back from the bank. Traditional banks decline the vast majority of applications for loans today, even if your business is doing well.

If you’ve struggled with securing small business loans for your veteran-owned business, turn to QualiFi. We can secure a business line of credit for veterans that ensures you have the working capital you need to grow. Contact us today.

How Do I Get a $1 Million+ Business Line of Credit (Without Waiting Months on a Big Bank?)

,
Banks decline growing businesses more often than stable ones. Businesses in debt spirals often have better operations than those that never borrowed. $375M in financing taught us patterns that contradict everything textbooks say.

How Do I Get a Line of Credit for My E-Commerce and Amazon Business: Funding Q4 Inventory While You Wait on Payouts

,
Banks decline growing businesses more often than stable ones. Businesses in debt spirals often have better operations than those that never borrowed. $375M in financing taught us patterns that contradict everything textbooks say.

Should You Use a Line of Credit or Equipment Financing to Buy Equipment? Comparing Rates, Terms, and Monthly Payments

,
Banks decline growing businesses more often than stable ones. Businesses in debt spirals often have better operations than those that never borrowed. $375M in financing taught us patterns that contradict everything textbooks say.
Does Applying for a Business Line of Credit Hurt Your Credit?

Does Applying for a Business Line of Credit Hurt Your Credit? Soft Pulls, Hard Pulls, and What Actually Shows Up

Banks decline growing businesses more often than stable ones. Businesses in debt spirals often have better operations than those that never borrowed. $375M in financing taught us patterns that contradict everything textbooks say.
Rejected Line of Credit. What To Do

My Bank Said No to a Line of Credit. What Should I Do in the Next 7 Days?

,
Banks decline growing businesses more often than stable ones. Businesses in debt spirals often have better operations than those that never borrowed. $375M in financing taught us patterns that contradict everything textbooks say.

How Loan ‘Draws’ Work: Taking Money When You Need It Without Overborrowing

Banks decline growing businesses more often than stable ones. Businesses in debt spirals often have better operations than those that never borrowed. $375M in financing taught us patterns that contradict everything textbooks say.
Does Applying for a Business Line of Credit Hurt Your Credit?

Shorter Term or Lower Payment? The Trade-Off That Changes Your Total Cost

Banks decline growing businesses more often than stable ones. Businesses in debt spirals often have better operations than those that never borrowed. $375M in financing taught us patterns that contradict everything textbooks say.

Bridge Loans Explained: How to Move Fast on Property Before Long-Term Financing Lands

Banks decline growing businesses more often than stable ones. Businesses in debt spirals often have better operations than those that never borrowed. $375M in financing taught us patterns that contradict everything textbooks say.

How to Fund an Add-On Acquisition to Grow Faster Than Your Competitors

Banks decline growing businesses more often than stable ones. Businesses in debt spirals often have better operations than those that never borrowed. $375M in financing taught us patterns that contradict everything textbooks say.
PreviousNext