Did you know that your VA loan benefit can be used more than once? That’s right! If you have an existing mortgage on the mainland, where the VA loan limit is lower than Hawaii, you may still have enough of your benefit leftover for another home buying opportunity in Hawaii! We’ll give you an example of how you can use your VA home loan remaining entitlement.

The Staff Sergeant Jones Scenario

Let’s say SSgt. Jones and his family recently PCSed to Hawaii from his military assignment in North Carolina. While stationed in North Carolina, he used his VA home loan benefits to purchase a property with no down payment for $200,000 (FYI: the current VA loan limit in North Carolina is $424,100). Thus, he has an existing mortgage of $200,000 which is now paid monthly by renters.

When he arrives to Oahu, SSgt. Jones considers renting a home with his wife and children, but then he discovers that the VA Loan limit in Honolulu County is $726,525. That would mean that he has $526,525 to use on a condo or single family home in Hawaii with no down payment. He quickly looks up the contact information for Hawaii VA Loans to see if it’s really possible!

As an E-6 living in Hawaii, SSgt. Jones receives $3,105/month in Base Allowance for Housing (BAH) for 2019. The Hawaii VA Loans BAH Matrix with Dependents reveals that an E-6 can afford a $488,869 condo purchase price and a $535,785 single family dwelling purchase price for using his or her monthly BAH. This estimate puts SSgt. Jones in a good position for finding a property within the $526,525 limit he has left to borrow using his VA loan benefits.

In fact, according to the Honolulu Board of Realtors data, the median sale price for a condo was $415,000 in February 2019. If he’s searching for a single family home, he’s still in luck. As of March 13, 2019, Zillow.com has 209 single family homes with 2+ bedrooms for $526,525 or less. Yet, what opportunity do you have to purchase a home that exceeds the VA loan limit?

The VA Jumbo Loan

When a VA buyer desires to purchase a home above the VA loan limit, it is still possible for them to use their VA loan benefits. A loan amount above the limit is considered a “jumbo” mortgage – hence the term “VA Jumbo Loan.” In order to take this route, there are some important calculations to consider, and a down payment will be required. Take a look at the blog post, “All You Need to Know About the VA Jumbo Loan” to find out how the down payment is calculated.

As your local Hawaii VA loan lender, home buying scenarios for our veterans and service members are always our top priority. So give us a call at 808-792-4251 or contact us online, so we can help you with yours!