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Yearly Archives: 2010

Gabe Amey
By Gabe Amey 19th February 2014 0 Comments

6 Myths About VA Loans

At Hawaii VA Loans, we feel it’s important to make sure our veteran clients know the facts about their VA Loan benefits. In 2008, we wrote a blog called the “Top 5 Myths Regarding VA Loans.” Since myths don’t easily go away, it’s important to keep debunking them until they run scared out the front door of your Hawaiian dream home…or something like that! So here we go, let’s recall those five myths (and add a sixth) to reassert what the truth is when it comes to VA loans.

 

The 6 Myths

1. “I can only use my VA Loan eligibility once.”

This is still the most common myth we hear – and it is still false. There is no limit on the number of times you can use a VA Loan. If you’ve had a VA loan previously, you will need to have your entitlement restored by paying off the mortgage. Therefore, you will need to pay off the balance, sell the property, or refinance into a conventional mortgage in order to get another VA Loan.

There is a possibility in which you could have more than one VA Loan outstanding at a time – but only if you didn’t use your entire entitlement on the purchase of the first property. You do have to keep in mind that if you have used your VA Loan previously, the cost of the VA funding fee is increased from 2.15% to 3.3% (no down payment) for every subsequent use of a VA Loan.

Yet, if you’ve accumulated equity on the sale of your first home, and you can put a 5% down payment the next time, your funding fee can be reduced from 3.3% to 1.5%.

2. “Sellers won’t accept my offer if they know I’m doing a VA Loan.”

False. In the past, seller’s had to pay extra funds to cover some of the VA non-allowable closing costs. However, now that it’s a “Seller’s Market” in which there are more home buyers than home sellers, we are seeing that more mortgage lenders are picking up the total cost of these VA non-allowables. This helps make their borrower’s offers more attractive to sellers.

Additionally, there are an abundance of VA buyers searching for homes, making them a significant portion of today’s home buying market. It would be completely nonsensical to disregard VA buyer offers.

3. “VA Loan amounts are not high enough to buy a property in Hawaii.”

Not true. When I speak with military personnel who are new to the islands, many of them think that the VA Loan amount is $417,000. This was true for most of the continental 48 states, except Hawaii and Alaska where the maximum VA Loan amounts for 100% is actually $721,050 on Oahu ($713,000 on Kauai, 657,800 on Maui & $625,500 on Big Island).

Let’s recap that again – a borrower eligible for a VA Loan can purchase a home and have a total loan amount up to $721,050 without having to put a down payment! 

We know that in Hawaii’s market, $721,050 may still not be enough to purchase your ideal home. If that’s the case, you can take advantage of the VA Jumbo Loan Program, in which a minimal down payment is required (25% of the difference between purchase price and $721,050).

4. “Those in the National Guard or Army Reserves are not eligible for a VA Loan.”

This is false. Those who have served solely in the National Guard or Reserves may also qualify for a VA Loan if they have had at least six years of service. In some cases, if you were activated, you may be eligible for benefits without serving a full six year term.

5. “I cannot qualify for a VA Loan since I’ve declared bankruptcy in the past.”

Again – false.  If you filed bankruptcy but have been discharged for at least two years – we can disregard the bankruptcy.  If you have been discharged for less than two years, there is a possibility to still get a VA Loan if:

  • the applicant or spouse has obtained consumer items on credit subsequent to the bankruptcy and has satisfactorily made the payments over a continued period, and
  • the bankruptcy was caused by circumstances beyond the control of the applicant or spouse such as unemployment, prolonged strikes, medical bills not covered by insurance, and so on, and the circumstances are verified.

If you filed for Chapter 13 – you may be eligible for a VA Loan if:

  • the applicant has finished making all payments satisfactorily.
  • the applicant has satisfactorily made at least 12 months’ worth of the payments and the Trustee or the Bankruptcy Judge approves of the new credit.

6. “I can use my housing allowance from my Post 911 GI Bill to use for Qualifying on a home purchase.”

Unfortunately, this is incorrect. Since the Post 911 GI Bill’s Base Allowance for Housing (BAH) is temporary income (usually three years), we cannot use it for qualifying purposes.

Do you have a VA Loan question and wonder if it could be a myth? Your questions matter to us, so please feel free to contact our Hawaii VA Loan Specialists or fill out our online loan application to get qualified for a VA Loan.  We are happy to help!

Erin Delgado
By Erin Delgado 6th February 2014 0 Comments

BAH Breakdown: What Can Your Housing Allowance Buy?

Aloha, military service members! Here at Hawaii VA Loans, one of our goals is to be your go-to, trustworthy resource for information on home buying and the VA loan process. In order for us to achieve that, we think it is important to break it down for you. Not in dance moves, but in data, BAH style. We’ll leave the break dancing to you – for after you sign those closing papers.

What can your BAH buy?

When you think about the easy, relaxed style of Hawaii living, this peaceful home in the established residential neighborhood of Pacific Palisades, nestled in the mountains above Pearl City, evokes that way of life perfectly. Its open living space, tranquil family room, and updated, modern kitchen make this home move-in-ready, and ready to be enjoyed. The Pacific Palisades neighborhood is centrally located between downtown Honolulu and the city of Kapolei, and is a convenient distance to a variety of Oahu’s military bases.

In addition to the living space, this Palisades home has three bedrooms with beautiful, traditional open beam ceilings. A multi-use room with a separate entrance and closet can be used as a fourth bedroom for guests or family.

Last but certainly not least, the large yard space with its fruit and flower trees offers plenty of opportunity to create your personal, outdoor living area.

The BAH Breakdown

Where: 2415 Ahaiki Street Pearl City, Hawaii 96782

Bases nearby: Pearl Harbor Naval Base – 9.1 miles; Hickam Air Force Base – 11.5 miles

Property type: Detached Single Family

Asking price: $568,000

Bedrooms: 3

Bathrooms: 1.5

Square footage: 1,359

Schools: Palisades Elementary School, Highlands Middle School, Pearl City High School

Rates

  • Interest rate: 4.125%
  • APR: 4.459%
  • YSP: $1,450 credit towards closing costs

Payments

  • Principal and Interest (includes VA funding fee of 2.15%) = $2, 854.33
  • Insurance = $139
  • Property Tax = $119.75

Total estimated monthly payment = $3,113.08

The new 2014 BAH Rates support the ability for many active duty ranks to afford this property.  For E-7 to E-9, W-2 to W-5, O-1E to O-3E, and O-3 and above, this property will be covered by your Base Allowance for Housing. The BAH rates for ranks of E-6, W-1, and O-2 fall just under this property’s total monthly payment, and could still be affordable.

Do you like what you see? For more information regarding this property, contact Eighteen Properties at (808) 595-8478.

Would you like to find out if you qualify for this purchase price? Fill out this online application or contact VA Loan Specialist, Larry Lee at (808) 792-4251.

Erin Delgado
By Erin Delgado 28th January 2014 0 Comments

Hawaii VA Loans January Ambassador: Edda Hernandez

Edda Hernandez, U.S. Navy wife, mother, volunteer, worker, and Hawaii Navy League 2013 Key Navy Spouse of the Year is our Hawaii VA Loans January Ambassador.

After sitting down with Edda in her comfortable home on Marine Corps Base Hawaii in Kaneohe, I quickly discovered why she is so successful in all the endeavors she takes on. Friendly, energetic, driven, and passionate, Edda has all the qualities that make her many roles as a Navy wife, volunteer, mother to John (8 yrs) and Angela (4 yrs), as well as holding a part-time job, seem easy to juggle.

Simply put, Edda knows how to work hard. Long before she moved from the Dominican Republic to New York City when she was fourteen, Edda was preparing for her family’s transition to the U.S. by taking bilingual classes. She has embraced military life much like she embraced that move fifteen years ago, with determination and optimism. Yet, as busy as Edda is, she still finds time to relax and enjoy the activities that being stationed in Hawaii has to offer.

On November 27, 2013 Edda was awarded the Hawaii Navy League’s 2013 Key Navy Spouse of the Year award at Honolulu City Hall by Mayor Kirk Caldwell for her volunteer work as the Patrol Squadron 47 (VP-47) Family Readiness Group Ombudsman. Her husband, LT Adam Hernandez, is a Naval Flight Officer with the squadron. The Navy League, founded in 1902, describes the award recipients as “the glue that holds the deployed families together.” Edda was further honored on November 30th at halftime of the University of Hawaii vs. Army Black Knights football game at Aloha Stadium.

Here at Hawaii VA Loans, we feel fortunate to have Edda as our January Ambassador. She is a strong representative of the backbone of the military – the Military Spouse. Let’s find out more about Edda Hernandez and her military life.

Q&A with Edda Hernandez

Where are you from?

I grew up in the Dominican Republic. We moved to New York City when I was fourteen. It was total culture shock…not to mention the weather change! My mom knew at some point that we would move to the United States, so I took bilingual classes. My first day in school, I was told that I was very proper, because I spoke proper English.

How was that transition for you as a teenager?

It was easier for me than for my older siblings because I was still in school, so I could really experience the American culture every day and learn about it. I would go up to the library and get a book in Spanish and English. I’d read the one in English, and if I didn’t understand it, I would read the one in Spanish to cross-reference and see if I was making sense of the book. It was a challenge, but then it wasn’t. I would do it all over again.

Where did you go after New York City?

From New York, we moved to Providence, Rhode Island. We lived there throughout my high school years. I went to Gulf Coast University, and then we moved to Jacksonville, Florida, and I went to Florida State College and studied Business Administration. That’s where I met my husband, Adam.

Tell me about your involvement as a military spouse that earned you the 2013 Hawaii Navy League Key Navy Spouse of the Year.

I’m the volunteer Ombudsman, and basically I’m the link between the families and the Command. I’m there to support the spouses and families, especially during deployment – whether it’s getting letters to spouses who need them or unfortunately, helping to notify loved ones of a death in the family. It’s a great feeling to be able to help out other spouses when we don’t have our better halves here. It’s truly rewarding.

How did you learn that you would receive the award?

I was at work and I wasn’t even aware that I was nominated! I got a phone call from someone and they said, “Edda, you’ve won the Key Spouse of the Year award!” I thought it was a prank. And they said “No, seriously, you have to go to city hall on this date and meet the mayor.” I was in shock and I still am. It was an amazing feeling, it really was.

What has been the most challenging thing about being a Navy Spouse?

I think deployment is one of the most challenging times, especially if you have little kids and are temporarily becoming a single parent.

What helps you get through those challenging times?

We have a great spouse network, and I really rely on my family. Neighbors and friends. My kids. Yoga! I do lots of yoga on deployment! I run a lot on deployment. Having time for yourself, and remembering that you need to take care of yourself, because when you throw yourself into kids and being busy, you can forget about you.

What has been the best thing about being a Navy spouse?

How many people you meet. The different cultures. How much you learn from the other military spouses. I’ve learned so much. Military spouses look out for one another.  If you go online to certain message boards, you can get so much information about where you’re being stationed next and things like that from other spouses. We have a bond like no other.

What inspires you to take on bigger responsibilities within the military community?

I’m a busy body. I like to go, go, go – but I just love the military and I think that everything these men and women do is amazing.

Do you work outside of the home as well?

I do. I work in Human Resources. Sometimes I work 40 hours a week, and sometimes I work three – which I love for being able to spend more time with the kids.

How do you manage to handle all of your responsibilities?

It’s all about balance and being able to juggle your schedule. I’m a planner, but not on paper, it’s all mental. I used to work for a payroll company a couple years ago, and every client that would come in would have a client number to pick up their pay. I knew every single client number that would come in. I have a good memory!

What do you love about being stationed in Hawaii?

I love everything about it. What’s not to love? We’re in Hawaii! I love that I can get up on a Saturday morning and say, “We’re going to the beach!” I love that there is so much history here and I can teach my kids about it.  I love that you can just take a walk and revive yourself.

What is your favorite thing to do here on a day with your family or by yourself?

Hiking. I love Mariner’s Ridge. It’s so peaceful.

What advice do you have for other military spouses who may feel overwhelmed or are struggling with a deployment?

The one thing I would say is that it doesn’t get easier, you just get stronger. Every deployment is different, every duty station is different, but it’s worth it. I love that my kids get to experience different cultures. I knew about a couple cultures growing up, but for my kids to learn about the Hawaiian culture is just so great, and they’re really into it. It’s so fun to watch.

Mahalo to Edda Hernandez for hanging out and giving us a peek inside her life. Edda represents the values of strength, optimism, and helping others that Hawaii VA Loans holds dear. We wish her and her family continued success here in Hawaii! Thank you for your service!

Photos by Ricardo A. Finney, Hawaii Commercial Photography. Photo of Hawaii Navy League award ceremony courtesy of VP-47 FRG Facebook.

Erin Delgado
By Erin Delgado 25th January 2014 0 Comments

E Komo Mai: Hawaii VA Loans Introduces Maila Gibson-Bandmann

To say we are happy to have singer, songwriter, and performer Maila Gibson-Bandmann join our Hawaii VA Loans team as our new Realtor Relations Director is an understatement. We’re thrilled!

Maila, and her musical partner, Ben Vegas, have been singing and performing together for over ten years at venues around our islands and in the studio. Ben & Maila have a partnership that has been described as something “that almost can’t be given an award, be placed in a category, or be expressed through any one song. Simply put, they love music.” – and it shows. In 2011, their CD Forevermore won the Na Hoku Hana Award for Contemporary Album of the Year.

As a performer, Maila’s musical desire is to touch people by “singing straight into their hearts.” That passion for reaching out to people is one of the foremost qualities that Maila brings to the Hawaii VA Loans team. Her charisma and ability to connect with individuals is a key component to establishing relationships within our Hawaii real estate community.

Maila’s career in music began at the age of ten when she recorded a commercial jingle for Meadow Gold. Since then, she has released a solo album in Japan entitled Maila Gibson in 1996, had a number one hit single “What If It’s True” with Ben Vegas, and has won two Hawaii Music Awards for Female Vocalist of the Year and Pop Album of the Year for her 2003 album More produced by Ben Vegas.  As if that wasn’t enough, she has performed with national artists Natalie Cole, Ruben Studdard, Michael McDonald, Kenny Loggins, and Donny and Marie Osmond. Maila loves Hawaii and has shared the local stage with Na Hoku Hana Award winners The Hawaiian Style Band, as well as Grammy nominees Keali’i Reichel and Ho’okena. She attended the Grammy Awards after recording “The Prayer” on Ho’okena’s 2005 Grammy nominated album, Cool Elevation.

The new year is already proving to bring in more highlights for Maila. Just as she begins her journey with Hawaii VA Loans, Ben & Maila are gearing up for their 2014 NFL Pro Bowl performance at Aloha Stadium on Sunday, January 26, 2014. They will be singing Hawaii Pono’i and performing a mash-up of a Hawaiian song and a Lady Gaga song. The Hawaii VA Loans team is excited to follow her musical adventures and share them with our audience, all while she works with us to support Hawaii’s military community.

Let’s find out a little bit more about Maila Gibson-Bandmann, her experience with the military community, and, of course, her love for all things Hawaii.

Q&A with Maila Gibson-Bandmann

Where did you grow up?

I was born in Missouri. My dad is from there and met my mom when he was stationed with the Army here in Hawaii.  My mom was born and raised in Hawaii, so we always related to Hawaii as home, too. We missed it so much during the cold Missouri winter!

Tell me about your family.

My husband is Kelii Bandmann. He attended Kamehameha Schools and is from Kaua’i.  We’ve been married for eight wonderful years and we love CrossFit!  He is currently a Health and Wellness Administrator at HECO (Hawaii Electric Company). We have an 11 year old Cocker Spaniel named Molly.

Talk about your career path as it has led to your position as our Realtor Relations Director?

My full time gig for the last four years has been singing with my musical partner, Ben Vegas.  However, prior to that, I was a sales executive with the Marriott Ko Olina Beach Club. I have always had an interest in real estate and being Realtor Relations Director with Hawaii VA Loans allows me to be in the industry while still being able to pursue my musical passion.

What do you look forward to most about joining the Hawaii VA Loans team?

I look forward to networking with realtors in order to help veterans become homeowners. The Hawaii VA Loans staff is really great and I hope to help them be more successful.

What is your experience with Hawaii’s military community? Do you have friends or family members who have served?

I feel very fortunate to live in a state where the military presence is strong and where we can interact with members of the military on a daily basis. My dad served in the Army. My nephew recently returned from the Middle East. I have many CrossFit friends who have served.  I admire anyone in the Armed Forces. Yes, they receive great benefits for serving (such as VA Loans) but there’s no doubt that they are deserving. I am in awe of the sacrifices they make.

What do you enjoy most about living the Hawaii life?

Hawaii rocks! I’m grateful that I grew up in Missouri, because although I have family here and we visited often, being away from Hawaii gave me an even greater appreciation for it.  My husband and I love being outdoors – whether it’s working out with our barbells and kettlebells in the sun or hiking Koko Head. I love the ocean. At one time, I was surfing a couple times a week. Gotta get that going again!

What other activities do you enjoy in your spare time?

I enjoy a good cup of a coffee with my bible and journal. CrossFitting, surfing, dinner with my husband, or snuggling on the couch with our dog, Molly, while zoning out to various reality shows. I’m embarrassed to say which ones, so we’ll leave it at that!

Where can our audience see Ben & Maila perform live?

We perform at Gordon Biersch, HASR Bistro, and the Disney Aulani Resort regularly. We perform at weddings pretty much every weekend. The Pro Bowl is HUGE! We are so excited! And in the summer, we’ll be performing at Carnegie Hall!

Mahalo to Maila Gibson-Bandmann for sharing these details about herself with our audience. The pictures included in this post are from top: Maila and Ben Vegas in the studio, Ben & Maila musical duo image, Maila at the 2012 Hawaii VA Loans Showdown event, Maila solo image, and last, but not least, Molly.

To follow Ben & Maila visit:

To learn more about your VA home loan benefits fill out our online application.

 

Jim Owens
By Jim Owens 14th January 2014 0 Comments

BAH Breakdown: What Can Your Housing Allowance Buy?

Aloha, military service members! Here at Hawaii VA Loans, one of our goals is to be your go-to, trustworthy resource for information on home buying and the VA loan process. In order for us to achieve that, we think it is important to break it down for you. Not in dance moves, but in data, BAH style. We’ll leave the break dancing to you – for after you sign those closing papers.

What can your BAH buy?

If your home buying list includes a never-gets-old, spectacular Hawaiian view, this Kaneohe townhome at Poha Kea Point checks off that box in the bedroom, the living room, and the large lanai!

The Poha Kea Point townhomes in the Lilipuna neighborhood boast a park-like setting with a walking path, swimming pool, and tennis courts among their amenities. This listing in particular is a larger, two-story unit with two parking spaces, and let’s not forget the views.

The town of Kaneohe is located on the Windward side of Oahu – a highly sought after area for its beautiful beaches and small town feel. Marine Corps Base Hawaii is just around the corner for your convenience to work and for your family’s access to base facilities. However, if you’re stationed at Joint Base Pearl Harbor-Hickam (JBHH), highway H-3 is easily accessible from Kaneohe for your daily commute.

The BAH Breakdown

Where: 46-081 Konohiki Street Kaneohe, Hawaii 96744

Bases nearby: Marine Corps Base Hawaii, Kaneohe Bay – 9.0 miles

Property type: Condominium

Asking price: $549,000

Bedrooms: 3

Bathrooms: 2

Square footage: 1,008

Schools: Heeia Elementary, King Middle School, Castle High School

Rates:

  • Interest rate: 4.25%
  • APR: 4.584%
  • YSP Credit ($7,010) towards closing costs

Payments:

  • Principal and Interest (includes VA funding fee of 2.15%) = $2,758.81
  • Insurance = $120
  • Property Tax = $160.31

Total estimated monthly payment = $3,039.12

The new 2014 BAH Rates support the ability for many active duty ranks to afford this property.  For E-7 to E-9, W-2 to W-5, O-1E to O-3E, and O-2 and above, this property will be covered by your Base Allowance for Housing. The BAH rates for ranks of E-6 and W-1 fall less than a hundred dollars under this property’s total monthly payment, and could still be affordable.

Do you like what you see? For more information regarding this property, contact KU Realty, LLC at (808) 398-3220.

Would you like to find out if you qualify for this purchase price? Fill out this online application or contact VA Loan Specialist, Tai Jackson at (808) 983-2701.

Jim Owens
By Jim Owens 10th January 2014 0 Comments

2014 Honolulu County VA Loan Limit To Be Appealed

The VA loan limits for 2014 were announced in late December and the new numbers have created some confusion as to how they have been calculated.  In 2013, the VA loan limit was $750,000 for Oahu (and slightly higher in 2012). For 2014, it has dropped to $625,500.

This loan limit decrease seems quite odd, because all signs point to a housing market recovery and increasing home prices.

  • The Honolulu Star-Advertiser cover article for Tuesday, January 7, 2014, “Modest increase in market sets record high prices,” indicates that 2013 closed with record high median sales prices and forecasts higher prices for the future:

Last year was a record year for Oahu’s housing market, as the median price for single-family houses and condominiums reached new highs. Yet, the growth was a relatively modest 5 percent, which economists predict will pale in comparison with much stronger gains this year and beyond. (Gomes, 2014)

Why did this happen?

  • The VA calculates it’s “high cost” county limits directly off of the U.S. Department of Housing and Urban Development’s (HUD) published Median Sales price for the year in each county.
  • The VA county limit for all Hawaii counties is 125% of the median price.  Last year, the median price was $600K for Honolulu, so the limit was $750,000.
  • Earlier in December, HUD released its new limits for 2014 which were also lowered.
  • HUD also released its median sales price data. The surprise is that they calculated the median sales price for Honolulu as $450,000, a 25% DECREASE from the previous year.  Supposedly, that number is calculated based off of all the non-distressed one unit residential home sales from January 1 through August 31 of 2013 (the median includes both Single Family Residences and Condo sales).

What are we doing about it?

  • None of the trends that we can observe show Hawaii home prices declining.  Therefore, we plan on appealing the numbers.
  • The U.S. Department of Housing and Urban Development (HUD) has published information about an appeals process.  There are two “letters” that describe the process, some of the information is a bit contradictory and it’s not clear if an appeal can even be performed at all; it depends upon the data that HUD already has for the county.  However, the deadline is January 31, 2014.
  • We are in the process of gathering all the applicable sales information for submission to HUD.

Hawaii VA Loans will post an update as soon as the process is completed. We are keeping our fingers crossed for a positive result. Our VA loan specialists are ready to answer any questions you may have about your VA home loan benefits.