How to Use a Military Mortgage

Passed in 1940, the Soldiers and Sailors Relief Act gives active military personnel a chance to lower their mortgage interest rate. In some situations, the personnel may suspend payment of the mortgage while in active duty service with the United States Military.

Know if you qualify for a military mortgage. The Soldiers and Sailors Relief Act applies to all branches of the military and the National Oceanic and Atmospheric Administration. Reservist are also eligible for the mortgage under this act. The mortgage must be set up before the personnel's active duty.

Submit a written request for the military mortgage and send it to your lender. The lender must receive the written request after 180 days of discharge from the military service. The request must include the personnel's name, rank and base you are stationed at.

Contact the lender after the request is submitted to review their actions. The Soldiers and Sailor's Act requires the lender to lower the interest rate to 6 percent. Some lenders suspend payment for military personnel overseas and those in dire circumstances. If the mortgage is suspended, payments must begin again once the servicemember is discharged from active duty.

Understand the foreclosure restrictions with the military mortgage. The bank cannot seize or foreclose on a property of active servicemembers who file for a military mortgage. The bank must wait 90 days after the servicemember is discharged from active duty or must get court approval within the 90-day period.

Military offices have information about and copies of the Soldiers and Sailors Relief Act.

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