Military loans best mortgages auto loans and personal loans for military members

Top 10 Military Loan Lenders – Ultimate Guide to Military Loans

These are the top military loans by credit type. Find out what rates and terms servicemembers can expect when applying for a mortgage, auto loan, personal loan, or credit card.

The men and women who serve and have served this country in uniform have made many sacrifices. As a result, they rightly deserve the special benefits and perks that institutions offer them.

While some benefits are relatively small, such as discounts in restaurants and at retail establishments, others are more substantial.

For example, many financial institutions offer breaks on rates and fees that can end up saving active duty military personnel, veterans, and their families hundreds, if not thousands, of dollars.

The best military loans of 2018

If you’re searching for a financial institution that offers such deals, we can help. We’ve put together a list of lenders that offer all types of loans with special perks for people in the military community.

To give you an idea of what interest rates you can expect, here’s a table that shows typical rates for each loan type:

Best mortgage loans for the military

USAA

USAA is one of the best financial institutions out there for military members, offering a suite of financial services from banking to insurance to loans.

The lender offers both conventional and VA loans. With a conventional loan, you need at least a 5% down payment and a 620 credit score. But with a VA loan, there’s no down payment required, and you don’t need to meet any credit score requirements.

The only catch to the VA loan is the VA funding fee, which can range from 1.25% to 3.3% of the loan amount. But if you’re entitled to service-connected disability payments, you don’t have to pay the fee.

On the flip side, the VA loan doesn’t require private mortgage insurance, whereas a conventional loan does unless you have a down payment of 20% or more.

Veterans United Home Loans

Veterans United Home Loans is the largest VA loan provider in the United States. The same terms apply as with a VA loan from USAA, but interest rates may be different, so it’s wise to still compare both lenders. In addition to offering VA loans for new purchases, Veterans United also offer home refinance loans.

Military homeowners can use refinance loans to get cash back on a VA refinance and use the money to pay off debt, home improvements, and many other expenses. The two main VA refinance programs are the VA Streamline Refinance, also known as the Interest Rate Reduction Refinance Loan and the VA Cash-Out Refinance.

Auto loans

Navy Federal Credit Union

Navy Federal Credit Union (NFCU) offers not only low interest rates but also 100% financing and super-long repayment terms. You can finance your new car for anywhere between 36 and 96 months — that’s up to eight years. Exact rates, terms, and conditions will depend on your credit and financial profiles.

In addition to offering great terms, NFCU also offers an Auto Buying Program. The program not only helps you find a low-priced vehicle, but it also offers savings that aren’t available to the general public. All you need to do is enter your zip code and start searching based on your preferences.

The program includes participating dealerships nationwide, and it makes it easy to find dealerships nearest to you. If you want to buy a car while deployed, the Overseas Auto Buying program can help you find and deliver a car stateside or wherever you’re stationed.

USAA

As we’ve already mentioned, USAA is one of the best overall financial institutions for military members and their families.

You can get an auto loan through USAA for new cars, used cars, and for refinancing existing loans. The lowest loan rates are available for new cars which, are typically the current year and previous year model. If you have your eye on a used car, you’ll typically receive better rates if you finance at least $15,000.

USAA’s loan terms range from 12 to 84 months, depending on your needs. USAA’s interest rates aren’t quite as low as NFCU’s, but the lender does offer a 0.50% rate discount if you go through the USAA Car Buying Service. You’ll also get other savings through the program. In fact, USAA estimates that the average member saves $3,554 off MSRP when using the service.

And if you set up automatic payments on your new loan, you’ll get another 0.25% discount.

As with any other type of loan, the exact rate and terms you get will depend on your credit and financial profiles. While USAA is happy to accept applicants of all credit types, you’ll need excellent credit and a solid income to get the best rates.

Personal loans 

LendingClub

As a leading online lending marketplace, LendingClub loans are available to the general public. However, military personnel potentially have a distinct advantage.

That’s because when you apply for a LendingClub loan, you have to provide detailed personal and financial information. If your financial information isn’t as stellar as you want it to be, LendingClub investors may still be willing to take a chance on you based on your personal story.

What’s more, LendingClub’s minimum credit score is just 600. The lender offers competitive interest rates on the low end, but they can get high if your credit isn’t great. Also, the lender charges an origination fee of 1% to 6% of your loan amount. You can borrow between $1,000 and $40,000, and you’ll pay it back over three to five years.

Omni Financial Military Loans

Omni Financial Military Loans offer eligible borrowers personal loans ranging from $500  to $10,000. Stateside borrowers may apply online or visit a brick-and-mortar Omni Financial facility.

If you’re stationed overseas, however, you can complete your application online. If you’re approved, you can get your cash by check, direct deposit, or a virtual Visa debit card.

What sets Omni apart is its 15-day satisfaction guarantee. If you decide for any reason during the first 15 days after you get your loan that you don’t want it, you can return the money at no cost.

Repayment terms include six to 36 months, and the lender’s rates are competitive. Your rate will depend on several factors, including your state of residence, the amount and length of the loan, current financial obligations, and past credit history.

Pioneer Military Loans

Pioneer Military Loans is another online lending option for military personnel seeking personal loans. Like Omni, Pioneer Military Loans offers loans from $500 to $10,000, and you can return your proceeds and cancel the loan at no cost if you do it within 15 days.

Borrowers can complete an application online or over the phone and are evaluated according to a proprietary Military Scoring model, which takes into account the military lifestyle.

NetCreditNETCREDIT

NetCredit represents another online lending option for military personnel seeking personal loans. This is one of the few subprime lenders that does offer bad credit military loans to active duty personnel. Borrowers complete applications online or over the phone, and are evaluated according to a proprietary scoring model.

Business loans

SmartBiz SBA Loans

The SBA has instituted the Patriot Express Loan Program in collaboration with banks and lending institutions across the country. SmartBiz SBA loans is a company that specializes in SBA loans and can process them in a matter of weeks instead of months.

If approved, you can qualify for a loan of up to $500,000 to help you fund your business. Loan money can be used to start or expand an existing business, finance equipment purchases, working capital, business-related real estate or inventory.

Repayment terms can be anywhere between 10 and 25 years, and interest rates are extremely competitive with other small business loans.

Credit cards

Platinum Card from American Express

If you’re an active-duty servicemember, the Platinum Card from American Express is a no-brainer. Its steep annual fee would make it difficult for non-military members to afford. But American Express waives the fee if you’re active duty.

Here are some of the highlights of the card in addition to its impressive sign-up bonus, which is worth hundreds of dollars:

  • Earn 5 points per dollar spent on airline and hotel purchases made through American Express Travel, plus 1 point per dollar spent everywhere else.
  • Get a $200 airline fee credit each year.
  • Get $200 worth of Uber credits each year.
  • Visit any of American Express’ Global Lounge Collection in airports all over the world.
  • Get elite status with several hotel chains and car-rental companies.

If you can get the annual fee waived, that’s a lot of value.

PenFed Promise Visa Card

The PenFed Promise Visa is the only credit card we’ve ever seen that has absolutely no fees at all. While the card doesn’t offer ongoing rewards, it does offer a sign-up bonus, so you can still get some monetary value other than skipping the fees.

So, if you need a vanilla card and want to avoid foreign transaction fees, annual fees, balance transfer fees, and cash advance fees, this is the card for you.

PenFed Credit Union, like NFCU, is dedicated to the military community, so you can also get other military perks when you become a member.

The bottom line

As a member of the military community, you have a lot of opportunities to save money when you borrow. That said, it’s still important to shop around and compare different lenders to make sure you’re getting the best overall deal. That applies to mortgage loans, auto loans, personal loans, and credit cards alike.

As you take the time to do the research, you’ll have a better chance of getting the best rates every time.

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