The 2021 Basic Allowance for Housing (BAH) rates take effect on January 1, 2021. For active duty military members moving to Hawaii in 2021, these are their monthly rates for housing. However, for service members already stationed in Hawaii, their BAH rate will be the higher of their current rate or the new 2021 BAH rate.
Update: The 2022 BAH rates take effect on January 1, 2022. GO HERE to see the 2022 rates and their condo and single family home purchase price conversions for Hawaii.
2021 BAH Rates for Honolulu County, Hawaii
Source: Defense Travel Management Office
Grade
With Dependents
No Dependents
E01
$2,823
$2,118
E02
$2,823
$2,118
E03
$2,823
$2,118
E04
$2,823
$2,118
E05
$2,991
$2,412
E06
$3,012
$2,667
E07
$3,189
$2,829
E08
$3,390
$3,000
E09
$3,588
$3,006
W01
$3,024
$2,769
W02
$3,273
$2,997
W03
$3,519
$3,009
W04
$3,618
$3,048
W05
$3,738
$3,234
O01E
$3,231
$2,991
O02E
$3,480
$3,003
O03E
$3,633
$3,015
O01
$3,000
$2,652
O02
$3,009
$2,937
O03
$3,507
$3,012
O04
$3,777
$3,201
O05
$3,966
$3,315
O06
$4,002
$3,498
O07
$4,032
$3,561
The 2021 BAH rates are based on the current local median market rent and average household utilities (including electricity, heat, and water/sewer) in each military housing area (MHA); and incorporate a five percent out-of-pocket amount.
2021 BAH to Purchase Price Conversion Matrices for Honolulu County
The BAH matrices below detail the estimated Condo Purchase Price and Single Family Dwelling (SFD) Purchase Price service members can afford using their monthly BAH rate solely as their mortgage payment at 3.00% interest rate.
Keep in mind, interest rates vary depending on several factors. and your personal VA Loan Specialist determines the current interest rate at the time of your purchase.
In addition, the estimated purchase prices in the BAH matrices do not reflect extra income (from employed spouses for example) in the monthly mortgage payment. Therefore, one’s pre-approval amount will vary depending on their debt-to-income ratio and additional income.
Get pre-approved to find out exactly what purchase price you can afford. Most importantly, there is no down payment requirement for VA buyers with full entitlement.
2021 BAH to Purchase Price Conversion Matrix With Dependents for Honolulu County
2021 BAH to Purchase Price Conversion Matrix With No Dependents for Honolulu County
*Download High Quality versions of the 2021 BAH Matrices for free HERE.
The VA loan limit in 2021 is no limit for VA borrowers with full entitlement, but there is a VA loan limit for borrowers with an outstanding VA loan or prior VA loan default. That limit is calculated using the Conforming Loan Limit in 2021 of $822,375 for Hawaii.
UPDATE: Starting January 1, 2022, there will continue to be no VA loan limit in 2022 for VA borrowers with full entitlement. VA borrowers with remaining entitlement will have a new conforming loan limit in 2022.
borrowers who used their VA loan benefit in the past, but do not have an outstanding VA mortgage
borrowers with no prior VA loan defaults
VA buyers with full entitlement have no VA loan limit in 2021 that requires a down payment, but they must be PRE-APPROVED for the purchase price amount. That means if a VA buyer with full entitlement can afford to buy a home in Hawaii for $2 million dollars, then he or she can buy one with a VA loan and put zero down.
VA Buyers with Remaining Entitlement
Veterans can have more than one VA home loan. There is a maximum amount they can borrow on a second VA loan and make no down payment, however. They will need to know their “remaining entitlement” amount that is calculated using the “conforming loan limit” set by the Federal Housing Finance Agency (FHFA) each year.
In 2021, the Conforming Loan Limit is $822,375 in Hawaii.
VA Loan Limit with Remaining Entitlement: Calculation & Down Payment Scenario
Major Jones pays a VA mortgage on a $200,000 mainland home that he rents out. His goal is to purchase another home near his Hawaii military base using his remaining VA entitlement, so he contacts a local Hawaii lender and finds out that the Conforming Loan Limit is $822,375.
Remaining Entitlement Amount:
$822,375 – $200,000 = $622,375
Major Jones can purchase a Hawaii home with no down payment for $622,375!
He gets pre-approved with Hawaii VA Loans and finds a condo to purchase for $650,000. However, that price is above his remaining entitlement amount. He must put down 25% of the difference between the purchase price ($650,000) and his remaining entitlement ($622,375).
$650,000 – $622,375 = $27,625
and
25% of $27,625 is $6,906.25
Therefore, Major Jones makes a $6,906.25 down payment on his Hawaii condo purchase. That down payment is much more affordable than a 20% down payment needed on the total purchase price with a conventional loan!
Contact Hawaii VA Loans
Let’s help you become a Hawaii homeowner in 2021! Chat directly with a VA Loan Specialist at 808-792-4251 or get started online with our secure loan application.
WASHINGTON — The U.S. Department of Veterans Affairs (VA) announced today it will award more than 425 grants to community organizations totaling approximately $279 million under the Grant Per Diem (GPD) program.
The GPD program provides funding to community organizations that provide transitional housing and supportive services for homeless Veterans, with the goal of helping homeless Veterans achieve residential stability, increase their skill levels and income and obtain greater self-determination.
“The GPD program is one component of VA’s multifaceted continuum of services and resources to help Veterans exit homelessness,” said VA Secretary Robert Wilkie. “No Veteran should ever have to worry whether they will have stable housing, and these grants put us one step closer to ensuring all Veterans are living in a safe and supportive environment.”
The award period begins Oct. 1 to support three different types of grants to address the unique needs of Veterans who are homeless:
Per Diem only grants are used to provide transitional housing beds and operate service centers for Veterans experiencing homelessness. These grants provide funding in the form of per diem payments to reimburse grantees for the cost of care provided to Veterans during the award period. A total of 369 grants to organizations will be awarded to provide 12,138 beds and 18 service centers totaling approximately $221 million.
Special Need grants provide funding to organizations that incur additional operational costs to help Veterans with special needs who are experiencing homelessness, including women, individuals with chronic mental illnesses and Veterans who care for minor dependents. A total of 11 grants to organizations will be awarded totaling approximately $2.4 million.
Transition in Place grants provide funding to community agencies that place Veterans experiencing homelessness in transitional housing while providing them with supportive services. These services are designed to help Veterans become more stable and independent, with the ultimate goal of Veterans assuming full responsibility for the lease or other housing agreement. When that goal has been achieved, the transitional residence becomes the Veteran’s permanent residence, and supportive services come to an end. A total of 46 grants to organizations will be awarded to provide 723 beds totaling $55.3 million.
The GPD program has provided Veterans who are homeless with community-based transitional housing and supportive services since 1994. The number of Veterans experiencing homelessness in the U.S. has declined by 50% since 2010 — resulting from the GPD program and other VA efforts.
In addition, on August 7, 2020, the VA announced that it awarded $400 million in grants under the Supportive Services for Veterans Families (SSVF) program to 266 non-profit organizations in all 50 states, the District of Columbia, Guam, Puerto Rico and the Virgin Islands for fiscal year 2021 set to begin on October 1, 2020.
United States Veterans Initiative (SSVF Grant) – Serving Honolulu, Kauai, Maui, and Hilo Counties
Catholic Charities Hawaii (SSVF Grant)
If you’re a veteran interested in learning about Hawaii’s no down payment required VA home loan program, contact Hawaii VA Loans for a free VA loan consultation at 808-792-4251.
To everything, there is a season. Pre-coronavirus, the peak Permanent Change of Station (PCS) season for active duty military was mid-May through the end of August. However, with the stop-movement order issued by Secretary Esper back in March, military orders and household moves have been backlogged, and there are labor shortages within moving companies (source: Military Times).
As military moves pick back up, the U.S. Transportation Command has extended its “peak season” rates to November 15th.
Peak season rates offer moving companies more money for taking on Department of Defense moves.
Statistically speaking, from May 15 to mid-June, military movers picked up 15,302 household goods as compared to the 86,843 household goods done in the same time period in 2019 – an 82% decrease (source: The Military Times).
Hawaii is currently one of the 39 states that had travel restrictions lifted by the DoD in early June.
However, even as moves pick back up, 100% timely PCS moves for military members are not guaranteed as conditions for their move must also be assessed at their designated military installation. Moreover, service members PCSing to Hawaii or any location are subject to the changing state conditions with COVID-19 and its affect on moving company crews. Simply put, a quick summer move is not in the cards for military families this year.
Yet, one way to make PCSing to Hawaii easier is to GET PRE-APPROVED for a VA home loan prior to arriving to the islands.
Pre-approval for a VA loan is a green light to shop for a Hawaii home knowing the offer price you make is secure for financing. Hawaii VA Loans makes the pre-approval process simple and clear regarding the documents and financial information we need to get you ready to buy. Many times, home buyers work with real estate agents and make an offer to buy a home BEFORE getting pre-approved for a VA home loan. Once pre-approval is granted, at least two outcomes could occur:
The buyer discovers through the VA loan pre-approval process that the price he or she thought they could offer is too high to receive financing OR
The buyer discovers that he or she could, in fact, shop for a home in a higher price range!
How long is a VA loan pre-approval good for?
As long as your financial situation does not change, a VA home buyer has 120 days to close the transaction.
Therefore, if your desire is Hawaii homeownership, get pre-approved FIRST! Contact Hawaii VA Loans to get started or fill out our secure online loan application here. We can’t wait to welcome you to the islands. Aloha!
We are fortunate to have five military spouses on the Hawaii VA Loans team: Jennifer, Kelsey, Mallory, Amber, and Sandra. Including myself (Erin), that makes six! Military spouses are a diverse group of individuals who have varying approaches to how they handle the military’s challenges, navigate its ebbs and flows, and even the level at which they immerse themselves in it. No one approach or one story can define all military spouses, for this I am sure. However, I do believe there is one word that can characterize those who have lived the military spouse lifestyle throughout our country’s history. That word is: resilient.
A resilient person is defined as one who can restand or recover quickly from difficult conditions. Now, a “difficult condition” is subjective. Exposure to such conditions and the human resiliency that results from them can be applied to multiple life experiences outside of the military, such as poverty and illness. What makes someone resilient? Well, it has been studied that resiliency factors in humans can be innate or learned. In a way, during this time of COVID19, one can learn from (or relate to) what military spouses experience in terms of the uncertainty and strenuous conditions associated with service to one’s country. Perhaps we can find some parallels between the military spouse experience and the feelings surrounding the coronavirus and its timeline.
For example, the following questions can be asked:
When will the quarantine/social distancing/military deployment end?
Will my loved one be safe from the virus/the military missions they are sent on?
When a service member leaves their family for months at a time, military spouses often live with great worry and anxiety about whether their service member is in harm’s way. One of the most significant frustrations a military spouse can face is when their loved one is expected to come home. How? Well, even when military units, ships, or squadrons are slated to return from deployments, their homecoming dates are often pushed back by days, weeks, and even months. It has also been the case that servicemembers must unexpectedly leave again and redeploy only after a short time at home.
These last minute and sudden changes can feel frustrating and unending, especially when a military spouse is anticipating a return to “normalcy.” Daily life can feel lonely, isolating, and stressful when managing work and family responsibilities all alone. Yet, military spouses continually find the strength within themselves to get through the time apart and/or reach out for additional support from other spouses, family members, and connections within their communities.
Maybe by having the knowledge of what military spouses experience in their lives, individuals can be inspired during this time of COVID19 to persevere through the unknown, the worry, the delays, and the setbacks by digging into their own sense of resiliency and never losing hope for the best outcome. For when that day comes, the relief and joy will be unmatched. It is one of the benefits of life as a military spouse – to be able to experience the full gamut of human emotions and thus be keenly aware of what true happiness feels like.
Now, let’s return our attention to our military spouse team members! Each one has generously shared interesting facts about their lives, insights about military life and of course, achieving the goal of VA loan home buying in Hawaii!
Favorite Thing About Living in Hawaii:
A lot! I moved to Hawaii before meeting my husband and lived on Maui for 4 years. I then moved to Oahu and lived on Oahu for 4 years. I enjoy being outside hiking and going to the beach.
The Most Challenging Part of Military Life:
Moving to different places and not knowing anyone.
Advice to a Military Spouse Just Beginning:
Find a job where you can work from home and remotely, so that when you do move from place to place, you can retain your job. Most companies do not want to hire a military spouse because we move every 3-4 years. If you do want to work and have a job, one that you can do no matter where you are located is key!
Thoughts on Hawaii Home Buying Using the VA Loan Program:
A VA home loan offers benefits that a Veteran can take advantage of nationwide, but here in Hawaii, purchase prices are very high so being VA eligible and having the ability to put 0% down payment will save you A LOT of money.
A Myth About VA Home Loans:
That you can only use your VA eligibility once or that it will expire if you got out of the military a long time ago. Not true!
Important Piece of Home Buying or Financial Advice:
Save money to prepare for your VA loanpurchase. Even though you are not required to put a down payment, having savings is essential because when you own a home there are sometimes unforeseen expenses and having savings can make the transition from renting to owning easier.
Favorite Thing About Living in Hawaii:
My favorite thing about living in Hawaii was the weather and also the ability to go to the beach and hike any time of the year.
The Most Challenging Part of Military Life:
The most challenging part of military life is being away from family and missing big events such as weddings, graduations, etc.
What You’ve Learned About Yourself as a Military Spouse:
I’ve learned that I can’t control everything and to try to make the best out of the situation.
Advice to a Military Spouse Just Beginning:
Be flexible and positive!
Thoughts on Hawaii Home Buying Using the VA Loan Program:
The VA home loan program is a great resource for home buying. It allows Veterans to purchase a home with no down payment!
A Myth About VA Home Loans:
That you can only use your VA home benefit once. (See our blog post on remaining entitlement.)
Important Piece of Home Buying or Financial Advice:
Favorite Quote Related to Home Buying or Personal Finances:
“A budget is telling your money where to go instead of wondering where it went.” – Dave Ramsey
Favorite Thing About Living in Hawaii:
The friends we made and the beaches!
A Rumor About Living in Hawaii That’s Not True:
The cost of living is “too high”… As long as you are wise with your budget, the COLA and BAH can allow you to live comfortably and experience “island life.”
The Most Challenging Part of Military Life:
Leaving my friends, but also, now that I have children of my own, watching them leave their friends. Nothing pulls at my heart like watching my kids have tears in their eyes not knowing when the next time they’ll see their best friends again.
What You’ve Learned About Yourself as a Military Spouse:
It forces you to become independent which is very rare in today’s society. I think that is something to be proud of because we truly don’t know when there will be a need to make hard decisions by ourselves or solve some of life’s problems on our own.
Advice to a Military Spouse Just Beginning:
Find a good group of friends because those friends will become your stand-in husband, last minute babysitter, shoulder to lean on, and honestly your only family you will be around for several years more than likely.
Thoughts on Hawaii Home Buying Using the VA Loan Program:
It never hurts to see what your BAH can afford you in Hawaii. No one enjoys throwing away money each month on rent, so if you can invest in the few short years you’re in Hawaii, then why not?
A Myth About VA Home Loans:
I still believe there are quite a few servicemembers who assume you still have to put a down payment.
Important Piece of Home Buying or Financial Advice:
Always make your payments on time and if there is an emergency that comes up, reach out to the creditor ASAP to see if any arrangements can be made. Better to ask for forgiveness instead of permission does NOT apply to your credit!
Favorite Quote Related to Home Buying or Personal Finances:
You have to use it or you lose it. Positive credit history, when used correctly, can save you lots of money down the road in interest rates!
Favorite Thing About Living in Hawaii:
I was born and raised here. I love everything about Hawaii: the views, beach, food and family!
A Rumor About Living in Hawaii That’s Not True:
We don’t need to eat rice with every meal. LOL
The Most Challenging Part of Military Life:
I think when you have children the hardest thing for me was being away from home and not having help.
What You’ve Learned About Yourself as a Military Spouse:
I learned that I never thought I would miss home as much as I did when we were living in Virginia, especially when you have kids. I always thought I could do it, but once we had them I just wanted to come home for the extra support.
Advice to a Military Spouse Just Beginning:
It’s not always easy, but it’s worth it.
Important Piece of Home Buying or Financial Advice:
I’m not a homeowner yet, but it is a big step and everyone that buys a home in Hawaii should feel proud!
Favorite Quote Related to Home Buying or Personal Finances:
It’s not how big the house is, it’s how happy the home is.
Favorite Thing About Living in Hawaii:
The culture for sure! The island, sand, ocean, vegetation, and the Aloha spirit!
A Rumor About Living in Hawaii That’s Not True:
That Hawaiians do not like you. They do, all they ask is that you respect the Island and be Aloha.
The Most Challenging Part of Military Life:
Employment seeking. Friends can always be made and kept.
What You’ve Learned About Yourself as a Military Spouse:
You are vital in the family. You are what keeps the family together and should help and support other families that just might need your help as well. Everyone needs a friend – a fellow spouse to help bounce ideas off of and support you when your spouse is gone for deployment, schooling or elsewhere.
Advice to a Military Spouse Just Beginning:
Listen to experienced spouses and have a friend.
Thoughts on Hawaii Home Buying Using the VA Loan Program:
Not many know their buying potential and are scared or don’t have time to research it. Benefits are there for a reason and should be used for your service to our country. The ability to purchase a piece of paradise and not pay anyone else’s mortgage – it is yours and you are able to do what you’d like to it! Homeowner 1 – Landlord 0
Important Piece of Home Buying or Financial Advice:
Know what you qualify for. If you have to get a credit card, you probably don’t need what you are buying.
Favorite Thing About Living in Hawaii:
Everything about the weather and landscape, but also for me, it’s an intangible feeling that hasn’t been matched living anywhere else.
A Rumor About Living in Hawaii That’s Not True:
That it’s too difficult to buy a home. You may have to sacrifice certain wants and desires, and adjust your lens a bit, but it’s more than possible if that’s your goal.
The Most Challenging Part of Military Life:
It’s unpredictable. The military loves throwing curve balls!
What You’ve Learned About Yourself as a Military Spouse:
I’m more of an introvert by nature, and in the military’s very social community, it took me some time to embrace that rather than trying to be someone that I’m not.
Advice to a Military Spouse Just Beginning:
Buckle up!
Thoughts on Hawaii Home Buying Using the VA Loan Program:
Simply the best opportunity in home buying that I’ve come across.
Important Piece of Home Buying or Financial Advice:
Save and zero out your credit card debt each month.
Favorite Quote Related to Home Buying or Personal Finances:
“Real estate is an imperishable asset, ever increasing in value. It is the most solid security that human ingenuity has devised. It is the basis for all security and about the only indestructible security.” – Russell Sage
The Veterans Benefits Administration has updated its “Valuation Practices during COVID-19.” The Circular outlines the adjusted rules of the VA’s appraisal process in order to protect appraisers, Veterans, and industry stakeholders as they continue to work toward delivering VA home loan benefits to our nation’s servicemembers and veterans during COVID-19.
The updated guidelines are effective for all loans on or after the date of the announcement: April 10, 2020, and will continue until further notice.
The action taken will allow for EXTERIOR-ONLY appraisals on properties up to $1,148,475 (one and a half times the maximum 2020 Freddie Mac Conforming Loan Limit); a full exterior and interior appraisal will be required if the value is larger. Fees, however, will remain the same as an interior/exterior (standard) appraisal.
To summarize the intricacies of this update, there are four main enhanced assignment conditions for the VA’s appraiser that go along with the exterior-only appraisals (more details of each condition can be found in the linked Circular):
The appraiser will review the full exterior of the property and provide photos of all sides of the property with detailed notes of the exterior and any visible MPRs.
A measurement of the footprint of the home should be provided if accessible. This is not to determine the gross living area (GLA) but for the appraiser to reconcile with public records.
The appraiser will conduct a detailed interview over the phone with the occupant, Veteran, or real estate professional regarding the property.
The appraiser may utilize any and all photos available from MLS, provided by the occupant, Veteran, or real estate professional.
In addition to the appraisal update, Reconsideration of Value (ROV) requests will be limited to $10K and will only be allowed for VA purchases. See point #3 in this post for ROV description.
CONTACT A VA LOAN SPECIALIST:
Island Dreaming: Top Ten Tips for House Hunting in Hawaii
VA Launches Lifeline Program to Aid 40,000 Veterans Facing Imminent Foreclosure
Talk Story: A Hawaiian Veteran Discovers His Lifetime VA Loan Benefit
Condo Life in Hawaii: 14 Things to Love
8 Great Long-Term Benefits of Hawaii Home Buying