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Members of the United States military services who are in need of financing to purchase a new car, truck, SUV or other vehicle can qualify for military auto loans that are specifically written for our men and women in uniform. These loans are intended for members of the Army, Navy, Air Force, Marines, National Guard, Army Reserves, Coast Guard, and Air National Guard, including their spouses. Active, discharged, and retired members of the military qualify. A military auto loan has a great number of benefits that civilian borrowers do not enjoy.
Qualifying For Your Military Loan
Although military loans are only available for members of the U.S. military, they are loans nonetheless and therefore are credit-based. However, the credit score needed to obtain the military automobile loan is often less than that which is required from a traditional borrower. For those military personnel with very bad credit (credit score lower than 600), a down payment may be required in order to be approved for the loan. A down payment of ten percent is usually sufficient to be approved.
You may also be asked to apply for the military automobile loan with a creditworthy cosigner. This person need not be a member of the military in most instances, but they must have good credit and be willing to repay the lender if you fail to do so for any reason. Oftentimes, the parents of a military service person will stand in as a cosigner for their son or daughter; however, anyone can be considered a cosigner if they have sufficient credit scores.
The vehicle that you choose to purchase with a military auto loan can be either new or used. There are also loans for military service personnel to refinance their current automobile loans to receive lowered rates or longer terms of repayment (which lowers the monthly payment to make it more budget friendly). Many lenders subsidize the military auto loans that they write, and this is due in large part to the stability that is seen when dealing with a military borrower. This perceived stability allows the lender to assume a lower level of risk and thus a lower rate of interest is almost always granted on military loans of any type, including those needed to purchase a vehicle. The terms of the military loan are often written to make the loan payable over a greater number of years than a traditional auto loan, with many of these loans being payable over eight year periods with minimal interest and low monthly payments.
Online Military Auto Loans
Many lenders offer military personnel the opportunity to apply for their military auto loans online via the Internet. Applying online is easy for military personnel. You will fill out a simple application, providing the lender with basic contact information and information regarding your service in the military. A copy of your military identification card may be required and you may be asked to provide the lender with three references that can be contacted if the bank needs to reach you and cannot. You may also be asked for your banking information in order for the lender to deposit your loan proceeds directly into your account. Online military auto loans are approved much faster when you go with an online lender in most instances. |
