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Military loan protections: SCRA 6%, MLA 36% MAPR & VA funding fee

As of Oct. 16, 2026

Short answer: Two different federal rules protect service members on loans. SCRA can cut interest on debts you took before active duty to 6% (request in writing with your orders; mortgages keep the cut for one year after service). MLA generally caps many loans you take while on active duty at a 36% Military APR (MAPR) — but home loans and many purchase-secured auto loans are outside the MLA. Separately, most VA-backed purchase loans charge a one-time funding fee (often 1.25%–3.3% of the loan) unless you qualify for a VA exemption such as service-connected disability compensation.

Best move if you're serving (or just left)

If you just got orders (or recently left active duty): list every pre-service loan and credit card and send each lender a written SCRA 6% request with your orders — you have until 180 days after release. For new borrowing while serving, check that the MAPR is not over 36% on MLA-covered credit. If you are buying with a VA loan, confirm funding-fee exemption status on your Certificate of Eligibility before closing.

The math:

  • SCRA: interest above 6% on covered pre-service debt is forgiven for the active-duty period (mortgage: +1 year)
  • MLA: covered consumer credit MAPR cannot exceed 36% (32 CFR Part 232)
  • VA purchase funding fee examples (first use): 2.15% (<5% down), 1.5% (≥5%), 1.25% (≥10%) — VA.gov chart effective Apr. 7, 2023

Sources: CFPB Ask CFPB #893 · DOJ Servicemembers Initiative · CFPB Ask CFPB #1785 · VA.gov funding fee

A best fit for the situation described, not financial advice or a buy/sell recommendation. Partner links never change a pick.

Your roadmap

  1. Inventory pre-service debts — auto, mortgage, cards, student loans, personal loans you opened before active duty (joint accounts with your spouse count).
  2. Send each creditor a written SCRA request with orders (letter, email, or portal). Keep copies. Ask for a refund of interest charged above 6% since you entered active duty.
  3. For new credit while serving, ask what MAPR they are using and whether the product is MLA-covered. Avoid loans that require a military allotment or waive SCRA rights.
  4. Buying a home with VA? Get your Certificate of Eligibility, check funding-fee exemption, and compare the fee on this page's calculator to your Loan Estimate.
  5. If a lender refuses, contact your nearest military legal assistance (JAG) office and you can report SCRA problems to the DOJ or submit a CFPB complaint.
  6. Deployed and eligible for SDP? See the Military Savings Deposit Program (10% on up to $10,000).
Show me the details

SCRA 6% interest cap (pre-service debts)

6% a yearInterest cap: On most pre-service debts (auto, mortgage, credit cards, student loans, other installment loans), interest — including certain fees — is capped at 6% per year while you are on active duty. Excess interest is forgiven, not deferred.Source: CFPB Ask CFPB #893 · DOJ Servicemembers Initiative
Taken before active dutyWhich debts: The SCRA 6% cap applies to obligations you (or you and your spouse jointly) took out before entering active-duty service. Debts started during service are generally not covered by this SCRA rate cap (the MLA may apply instead).Source: CFPB Ask CFPB #893 · DOJ Servicemembers Initiative
Written notice + ordersHow to claim: Send each creditor written notice (letter, email, or lender portal) with a copy of your orders. You can request while on active duty and up to 180 days after release. The reduction is retroactive to your entry onto active duty.Source: CFPB Ask CFPB #893 · DOJ Servicemembers Initiative
+1 year after serviceMortgage extra year: For most loans the 6% cap lasts through active duty. For mortgages, it continues for one additional year after active duty ends.Source: CFPB Ask CFPB #893 · DOJ Servicemembers Initiative
Active duty + covered Guard/ReserveWho qualifies: Active-duty members on Title 10 orders; Reservists on Title 10; National Guard on Title 10 or certain Title 32 §502(f) duty (>30 consecutive days for a Presidential national emergency with federal funds); PHS and NOAA commissioned officers. State law may give more.Source: DOJ Servicemembers Initiative
Joint onlySpouse accounts: Joint pre-service accounts with your spouse can get the cap. Accounts in only your spouse's name generally do not.Source: DOJ Servicemembers Initiative

What to put in the written notice

  • Your name, address, email, and phone
  • That you are on active duty and where you are assigned
  • That you are requesting the SCRA 6% interest rate cap
  • Every account number you want covered
  • A copy of your orders (or other proof of service the DOJ page allows)

Source: DOJ Servicemembers Initiative.

Military Lending Act (loans while serving)

36%MAPR cap: Creditors generally may not charge a Military Annual Percentage Rate (MAPR) above 36% on covered consumer credit to active-duty members and covered dependents. MAPR includes finance charges, credit insurance, many add-ons, and many fees — more than a simple APR label.Source: CFPB Ask CFPB #1785 · 32 CFR Part 232
Payday, title, many installment, cardsCovered products: Generally includes payday loans, deposit advances, vehicle title loans, overdraft lines of credit (not traditional overdraft fees), many installment loans, and credit cards (MLA card rules phased in by Oct. 3, 2017).Source: CFPB Ask CFPB #1785 · CFPB MLA hub
Home & purchase-secured loansNot covered by MLA: Residential mortgages (purchase, refinance, HELOC, reverse), a vehicle loan expressly to buy that vehicle and secured by it, and personal-property purchase loans secured by that property are generally outside the MLA. Pre-service versions of those debts can still get the SCRA 6% cap.Source: CFPB Ask CFPB #1785 · CFPB MLA hub
No forced allotment / arbitration / prepay penaltyOther MLA rights: A creditor generally cannot require a military allotment to get the loan, cannot force mandatory arbitration or certain rights waivers (including SCRA rights), and cannot charge a prepayment penalty.Source: CFPB Ask CFPB #1785

VA funding fee (purchase chart)

One-time fee on most VA-backed or VA direct loans. You can finance it into a purchase loan; other closing costs generally must be paid at closing. Chart effective April 7, 2023. Source: VA.gov funding fee.

SituationFee % of loan
First use, less than 5% down2.15%
First use, 5% or more down1.5%
First use, 10% or more down1.25%
After first use, less than 5% down3.3%
After first use, 5% or more down1.5%
After first use, 10% or more down1.25%

Other VA loan types (same VA.gov page)

  • IRRRL (streamline refinance): 0.5%
  • Manufactured home (not permanently affixed): 1%
  • Loan assumption: 0.5%
  • Vendee (VA-acquired property): 2.25%
  • Native American Direct Loan purchase: 1.25%
  • Native American Direct Loan refinance: 0.5%

Who usually does not pay the funding fee

  • You are receiving VA compensation for a service-connected disability
  • You are eligible for that compensation but receive retirement or active-duty pay instead
  • You receive Dependency and Indemnity Compensation (DIC) as a surviving spouse
  • You have a proposed or memorandum rating before closing that says you are eligible for compensation on a pre-discharge claim
  • You are on active duty and, on or before closing, provide evidence you received a Purple Heart

Confirm on your COE and VA.gov funding fee. A later disability award with a retroactive effective date before closing may qualify for a refund.

Limits of this page

  • This page republishes CFPB, DOJ, eCFR, and VA.gov rules with dates. It is not legal or lending advice, and it is not a Certificate of Eligibility or rate quote.
  • Your lender, JAG office, and (for VA loans) the VA decide eligibility, exemptions, and exact fees.
  • Refinancing or consolidating a pre-service loan while on active duty can create a new in-service loan that may lose the SCRA 6% cap.
  • VA funding fee percentages shown are the purchase/construction chart effective April 7, 2023 on VA.gov (page updated Oct. 5, 2026). Always confirm on VA.gov before closing.
  • We do not guarantee savings, approvals, or that a lender will apply these protections correctly.

Not legal or lending advice. We republish CFPB, DOJ, eCFR, and VA.gov rules with dates and do math on numbers you type. Your lender, JAG office, and the VA decide eligibility and exact numbers.

Sources & as-of dates

FAQ

What is the SCRA 6% interest rate cap?

Under the Servicemembers Civil Relief Act, many debts you took out before active duty can have interest (including certain fees) reduced to 6% a year while you serve. Excess interest is forgiven. You must notify the creditor in writing and provide orders. Mortgages keep the reduction for one year after active duty.

Does SCRA apply to credit cards and student loans?

Yes for many pre-service obligations. CFPB Ask CFPB #893 lists auto loans, mortgages, credit cards, other installment loans, and student loans taken out after August 14, 2008 among the examples. Joint loans with a spouse can qualify; spouse-only accounts generally do not.

What is the Military Lending Act 36% MAPR?

The MLA generally limits the Military Annual Percentage Rate on covered consumer credit to active-duty members and covered dependents to 36%. MAPR includes more costs than a simple APR. Home mortgages and many purchase-secured vehicle loans are excluded.

How much is the VA funding fee?

For purchase loans, VA.gov's chart effective April 7, 2023 lists 2.15% / 1.5% / 1.25% on first use (by down payment) and 3.3% / 1.5% / 1.25% after first use. IRRRL is 0.5%. Many Veterans with service-connected disability compensation are exempt.

When should I request the SCRA rate cut?

Any time while on active duty and up to 180 days after release. The reduction is retroactive to your entry onto active duty once you make a proper request.

Estimates, not financial advice. Taxes, insurance, PMI and fees vary by lender, county and city; confirm with your lender, dealer and state agency before acting.