Military benefits are designed to help ease your financial obligations and, in some cases, provide additional protection.
Line of credit, credit card and installment contract
Reduction or limits on interest rates. If you enter active duty, you may be entitled to a lower interest rate on your line of credit, credit card or installment contract. Under SCRA, if you provide notice that you're on active duty, lenders generally can't impose an interest rate higher than 6% on debts incurred prior to active duty. The 6% rate is in effect for your entire active duty service.
Reduced payments. If you are eligible for military benefits and your interest rate is higher than 6%, your payments can be reduced to reflect the lower interest rate.
In addition to the above, Installment Contracts (such as auto, RV, boat, motorcycle & aircraft) also receive protection from repossession. Under SCRA, if you enter active duty and have an existing loan, you're protected from repossession unless a court issues an order allowing the repossession to take place.
Home loan and home equity
Reduction or limits on interest rates. If you enter active duty, you may be entitled to a lower interest rate on your home loan. Under SCRA, if you provide notice that you're on active duty, lenders generally can’t impose an interest rate higher than 6% on debts incurred prior to active duty. The 6% rate cap is in effect for your entire period of active duty service. For home loans, the benefit extends one year beyond your period of military service. (NOTE: We currently offer a benefit that exceeds the federal law requirements described here. If your loan is owned and serviced by us, you’ll receive a rate cap of 4% for your home loan, potentially saving you thousands of dollars. Even if your loan is owned by the U.S. Department of Housing and Urban Development (HUD), Fannie Mae, Freddie Mac or other private investors, you may still qualify for the 6% rate cap. Please see below if you have questions regarding the ownership of your home loan, or to see if you’re eligible for the 4% or 6% rate cap.)
Reduced payments. If you are eligible for military benefits and your interest rate is higher than 6% — or 4% for home loans both owned and serviced by us — your payments can be reduced to reflect the lower interest rate.
Protection from foreclosure. The SCRA generally prevents lenders from foreclosing (unless there's a court order) on eligible active duty servicemembers during their period of military service and 12 months thereafter. Contact us to learn more.
Home retention options. In addition to other home retention options, we also offer the Military Modification Program. As part of the federal government's Making Home Affordable program, this program offers principal forgiveness and other solutions to help qualified military customers who are having difficulty making their home loan payments.