According to the VA Department, there are roughly 25 million Veterans living in the US today - and yet only 2.1 million VA Loans are currently being insured by the VA Department. It's obvious that most VA eligible borrowers are not taking advantage of the unique benefits allowed to them through the VA Home Loan program. Why? Probably due to the lack of information explaining the true benefits of a VA Loan as well as being intimidated by the home buying process.
From day one, our goal with HawaiiVALoans.com was to provide our current military personnel as well as Veterans with as much information regarding their VA Home Loan benefits as possible. And to continue our vision, I'm proud to announce that we have just released our 21-page eBook:
VA Homebuyers' Guide
Understanding Your VA Loan Benefits & The Home Buying Process
This 21-page ebook will cover everything from:
- VA Eligibility Requirements
- Your Entitlement
- How to Get Your Certificate of Eligibility
- Benefits of Homeownership
- VA Loan Benefits
- Occupancy Requirements
- The VA Funding Fee
- VA Closing Costs
- Condo Eligibility
- The VA Home Buying Process
- And Much More...
We feel that this 21-page eBook is a
must have (we're bias of course) for anyone who is interested in buying a home (either now or in the future) and is (or think they are) eligible for a VA Loan.
Download your copy today and we'd love to hear any feedback you have!
It's official. Included in the Housing and Economic Recovery Act of 2008 that President Bush signed, is Section 2201 that calls for the
"Temporary Increase in Maximum Loan Guaranty Amount for Certain Housing Loans Guaranteed by the Secretary of Veterans Affairs".
In essence, from July 30th 2008 - January 1st 2009, the VA Department will increase their guaranty amount to cover 25% of the greater of the two:
- $625,500 (for Hawaii, Alaska, Guam and Virgin Islands), or $417,000 (Continental 48 states).
- 125 percent of the area median price for single-family residence, up to $1,094,625 (Hawaii, Alaska, Guam and Virgin Islands) or $729,750 (Continental 48 states).
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This is our
second installment of our segment,
"What Can Your Housing Allowance Buy?", in which we feature properties currently for sale and determine what pay rank in the military you need to be in order to have your housing allowance cover the the mortgage payments (with no down payment).
Today's property is beautiful executive home that is listed roughly a $100,000 below the current tax assessed value ($694,200).
Ocean Pointe, Ewa Beach - $599,000
91-1051 Kaikala Street
Ewa Beach, HI 96706
Land: 4,491 sqft
Interior Living Area: 2,131 sqft
Bedrooms: 4
Bathrooms: 3/1
Monthly Taxes: $200
MLS #: 2813378
Description: Short Sell. New Ocean Pointe executive home never lived in! Home has over $73k in upgrades through the developer including recessed plantation shutters, 16 & 20 inch ceramic tiles throughout, Corian Countertops, and best of all a detached 2 car garage with separate mother-in-law studio or guest suite/game room.
[Read More]
I remember when having above a 700 Fico (credit) score was superb. If you had a 720, you were in elite status and able to get the best loan rates around. Fast forward to 2008 - and a 720 Fico score no longer guarantees a borrower the lowest mortgage rates.
Here's how this all started. In December 2007,
Fannie Mae (FNMA) &
Freddie Mac (FHLMC) (the two government sponsored agencies in charge of buying and selling mortgages on the secondary market which helps replenish the supply of capital in the mortgage market) implemented new Loan Level Price Adjustments based on credit score & loan-to-value.
Translation: FNMA & FHLMC implemented a tiered price adjustment matrix which increased closing costs for borrowers with lower credit scores and lower down payment. Why did they do this? To compensate for the losses FNMA & FHLMC were taking on the secondary market due to the increased amount of defaults and foreclosures occurring in the real estate market.
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I'm please to announce that recently completed
Capitol Place is now approved for VA mortgage financing! Located in Downtown Honolulu, Capitol Place has really set the bar high when it comes sleek and contemporary urban living here in Hawaii.
One, Two & Three bedroom units are currently available with prices ranging from the high $400K range to over $1 million. Here is a
complete list of units currently for sale.
To see if a particular condo is VA approved for financing, visit our
Condo Eligibility Check Tool on
HawaiiVALoans.com. If a particular condo is not on the list, feel free to
contact us for details on how to get that condo VA approved.
Here's more info regarding the building from the developer, PMK Development:
It stands sleek and proud on the corner of Beretania Street and Queen Emma Street, exuding a flair of sophistication. Walk inside and it simply feels chic. The lobby exudes a clean, fresh look that you're proud to call home.
Each one, two, and three-bedroom residence has been meticulously designed to provide a mood that blends the comfortable and the contemporary. No matter which floor plan you choose, your entry welcomes you in, and flawlessly balanced features all flow from there. Well-appointed kitchens with granite counters and designer details seduce you. Viking appliances and high-end kitchen finishes make the kitchen one of the rooms where friends seem to congregate. This "spare no expense" attitude is apparent in every room at Capitol Place. Bathrooms feature marble counters, while living rooms and bedrooms have the little extras that give them a marvelous understated style.
As night falls, the Honolulu city lights across town take over. Every residence is pre-wired and cable-ready for a relaxing evening at home, should you choose. And sleep comes easy, knowing that you wonմ face a long commute in traffic the next morning.
In our previous blog post we explained how
homeownership may not be as hard as you may think - especially if you are eligible for a
VA Loan. We touched on a few benefits of VA Loans which include
100% financing as well as reduced closing costs. We also explained that current military personnel have an added benefit in that they already receive a monthly housing allowance to pay or subsidize their rent or mortgage payments.
Today HawaiiVALoans.com is introducing a new segment to our blog called
"What Can Your Housing Allowance Buy?". With this, we will feature a specific property for sale to give examples of how much buying power one would have by just using their monthly housing allowance to cover their mortgage expense (with no down payment).
Mahi Ko at Waikele - $349,000
94-529 Lumiaina Street, #D101
Waipahu, HI 96797
Living Area: 830 s.f.
Lanai (Patio): 92 s.f.
Bedrooms: Two
Bathroom: Two
Parking: Two
MLS #: 2810757
Description: Exceptional Value: GROUND floor, CORNER unit with fenced large yard and patio-great area for BBQ. Ready-to-move in condition freshly painted, with laminate flooring and w-w carpet. Renovated kitchen w/new granite counter top, cabinets, refrigerator and washer- dryer, microwave oven. Hall bathroom: new vanity, toilet, ceramic flooring. Updated light fixtures in living room & kitchen.
[Read More]
Our main goal here at HawaiiVALoans.com is to educate current military personnel and Veterans about their
VA Loan Benefits. When you look at the benefits that the VA Home Loan Program provides compared to doing a conventional mortgage - you truly realize how advantageous it is to be a VA eligible home buyer.
In addition to these benefits, most current military personnel have another great advantage in that they currently receive a monthly housing allowance to pay or subsidize their housing payments. This housing allowance, also known as BAH, can range from $1491 - $3419 per month depending on rank and whether this person has dependents or not.
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In our last post I wrote about how on conventional mortgages, a borrower not putting at least 20% down is required to pay for
Private Mortgage Insurance (PMI). The cost of PMI will increase the borrowers monthly payments an average pf $150 - $400 per month depending on the loan amount and down payment.
We also discussed how with VA loans, the home buyer is not required to pay for this PMI since the VA Department serves as the insurance backer on these loans. So how does the VA Department insure all these VA loans without being a burden on the US taxpayers? They do this by charging a VA Funding Fee.
The VA Funding Fee is a one time upfront cost that the VA Department charges the borrower on every VA transaction. This fee is collected and pooled into a fund that is used to repay any losses (up to 25% of the original loan amount) that the mortgage lender has incurred when VA loan goes into default and lender has to either short sell or foreclose on the property.
How Much Does the VA Funding Fee Cost?
The cost of the VA Funding Fee depends on three main factors:
- Whether the borrower is/was a member of the regular military (Army, Navy, Marines, Air Force, etc.) or if they were/are a member of the Reserves or National Guard.
- If the borrower is a first-time user of the VA Home Loan Program or a repeat user.
- The amount of down payment (if any).
[Read More]
When it comes to insurance (auto, health, homeowners, etc.) they all have the same thing in common: it is never fun having to pay the premiums, but always a relief when the insurance company foots the bill. But what if you have to write the check to pay the premiums, yet you are not the one being insured?
This is the case with Private Mortgage Insurance (PMI).
PMI is insurance the lender requires their borrowers to pay when they don’t put a minimum of a 20% down payment on a home purchase. Not to be confused with homeowners’ insurance,
PMI does not insure the homeowner, instead – mortgage insurance insures the lender in the event the borrower goes into default and the lender needs to foreclose on the property. In this circumstance,
PMI insures the lender (up to a certain percentage of the loan) to offset loses incurred during the foreclosure process.
[Read More]
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