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Soldiers' and Sailors' Civil Relief Act
Frequent Questions
Who is eligible to receive the reduced interest rate of 6%?
Career military and Reserve members who closed their loan before entering active
military service. Members are considered to have entered active military service
when they are on active duty (working in the Armed Forces fulltime). The date
they entered active military service must occur after the loan has closed.
"Entering active military service" begins on the date the person receives
the order of induction or order to report for active military service or
active duty (working fulltime).
Once the loan has closed, how does a borrower apply for relief under the Act?
Copies of military orders must be sent to the mortgage company servicing the loan. Simply call your mortgage lender at their toll free number and find out exactly where to send the papers.
If the customer's loan is in process and they receive their orders to enter active
military service before the loan closes, are they entitled to reduce their interest rate
to 6% after the loan closes?
NO. For example, if the customer is in the Reserves and closes their loan after they
receive their orders to enter active military service, they are not eligible for the
reduction in rate because the Act applies to individuals who signed their note and
mortgage prior to entering into active military service. "Entering active military service"
begins on the date the person receives the order of induction or order to
report for military service. For a person in the Reserves, it would apply when they
receive their orders to report to active duty (fulltime).
If they close the loan before they receive their orders to enter active military service, they would be entitled to the reduction in rate after closing as long as they can provide a copy of the military orders to Servicing.
How long does the rate reduction apply?
The rate reduction applies as long as the person is in active military service and ends on the
date they are released from active military service.
Does a person have to be called to a war zone or military zone to be considered active in the military service or on active duty?
NO. The Act applies to "persons in the military service" as stated above.
Are there other rights under the Soldiers' and Sailors' Civil Relief Act?
YES. There are some limitations on actions that lenders can take in foreclosure proceedings and other provisions in the Act related to all obligations and liabilities at 50 U.S.C. App, Sections 501 et seq. Fannie Mae also provides guidelines related to the Act in part VII, Sections 304 of the Servicer's Guide. HUD and other investors also have information regarding the Act.
FREQUENTLY ASKED QUESTION # 12 [ -more VA Loan questions- ]
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Q: Are You Eligible for a VA Home Loan Guaranty - How do I get proof of eligibility?
A: It's easy to use an online program called ACE--the Automated Certificate of Eligibility--to get started in the VA loan guaranty process, yet can only have this done by a VA approved lender. Unfortunately, the automated system won't work for everyone. Some people don't have enough information in the ACE database, and are required to fill out a VA Form 22-1880, a Request for Certificate of Eligibility. If this applies to you, simply fill out the form and mail it to your regional Eligibility Center along with supporting paperwork including a copy of the DD214 discharge paperwork. Don't send originals of the DD214, a photocopy will do. The certificate of eligibility process can be tricky for veterans who were separated from the military with a discharge other than honorable. In this case the VA must investigate the discharge to insure it was not classified as dishonorable. People who fall into this category should seek help from their local VA office, especially if you need to file an appeal to the results of your request of eligibility.
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VA Loan Rates
for 7/05/2008
30 year fixed
-----------------
0.000 points
6.500%
6.618% APR
15 year fixed
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0.000 points
6.500%
6.500% APR
Life Insurance for Military Members
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