Banks can't lend me money while I'm overseas with the military?

Factual Questions
1

My husband and I have been doing real estate investments for years, and it has been quite profitable for us. Last year we got stationed over in Okinawa, and we’ll be here for 3 more years. We found some land we want to buy in Arkansas, where I’m from, and called USAA to get financing. They told me that they can’t initiate any new loans with people in Japan, not even a new credit card. We use them for all our banking, and have gotten mortgages from them before. Our credit is excellent and we have plenty of money, so it isn’t that.

So what’s up with that? Is this going to be a problem with everyone, or should I demand (politely) to speak to multiple levels of management at USAA (they have the best customer service in the world, and I hate dealing with other banks) to get them to give us the money?

If this is going to continue to be a problem, are there lenders who specialize in this kind of thing that someone can recommend? Thanks in advance.

2

You could try checking the Soldier’s and Sailors Relief Act. It prevents a lot of discrimination against military personnel on active duty. I don’t know if it addresses your situation or not.

3

Maybe identity theft is the concern? Lot harder to check things out from another country.

Otara

4

Have you check with any of the military credit unions? Penfed comes to mind.

5

If any firm is likely to know the minutae of lending to overseas-stationed military, it’s going to be USAA.

6

Checking a Service Member’s vitals is kind of easy as their employer is, literally, all over the US.

7

This would be a good case for base legal services. I’d give them a call.

8

I thought so too. I’ve spoken to several people there (in the interest of thou roughness) and they’ve all told me that there is a law in Japan that forbids new loans (from overseas lenders, I assume). They swear that it’s illegal to give us so much as a new credit card while we’re here. However, some of our friends who have been here a while say that they have obtained new cards while stationed here, so I don’t know what to think.

I’m going to the local branch of PenFed tomorrow (wasn’t open today) to see what they say, but if anyone knows what the hell this law is about, I would appreciate the information.

9

This sounds like the best and easiest plan to me. Appeal up the chain until you at least get an explanation as to why they won’t lend to you, given your good credit history. If anyone is going to go out of their way to clearly explain their policies to a service member, its USAA!

10

Or, perhaps, you could perform the transaction during a trip back to the States?

11

Why in hell would a law in Japan apply to a US citizen, serving in the US military, stationed on a US military base, buying land in a US state from another US citizen, arranged with a US-chartered bank?

If fact, how would the Japanese authorities even know that you had such a loan?

12

I find that very difficult to believe. The U.S. has a “Status of Forces” agreement w/ countries where U.S. military personnel are stationed, I can’t imagine any such restriction being a part of that, let alone any logical reason for it.
Your base legal office would certainly know if any such law existed, as Mr. Moto suggested.

13

I recall from many years ago when I was stationed in Germany that there were financial entities on-base and financial entities off-base that were both in the business of lending money to US military members. The off-base ones were licensed and operated under German law. The on-base ones were operated under American law pursuant to the SOFA.