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Erin Delgado
By Erin Delgado 25th October 2018 0 Comments

How to Hire the Right Contractor

Are you looking to start a house project after moving into the Hawaii home you purchased with your VA loan benefits? Maybe you’re thinking of updating the landscaping, lighting or getting a closet system installed. The good thing is that you used your VA home loan, put no money down, and saved a couple thousand dollars on closing costs! You can use that extra money to help make your new home the way you want it. Perhaps you’re thinking of an even bigger project like adding an ohana unit, renovating a bathroom or the kitchen.

Whatever your goals are – you need to make sure you hire the right people to do it!

Here at Hawaii VA Loans, we’ve come across valuable advice on the topic of hiring contractors, service professionals, and tradespeople. Use the information we’ve gathered below as your go-t0 reference for finding and communicating with any professional who works in the home repair/maintenance/building industry.

Get Referrals

Ask your friends or neighbors for names of people they’ve used to work on their homes. Another trick is to notice the homes in your area that are currently being renovated that are attractive to you in their style and design, and write the company names of the work trucks parked outside of their houses. The same can be said for exterior paint jobs. Consider knocking on a homeowner’s door of a color you love and ask them for a referral. Finally, utilize your real estate agent’s knowledge of the contractors in the area that he or she has had great experiences with in their career.

Get in Touch

Contact the contractors to inquire about the types of projects they do. You want to make sure they are knowledgeable of all the regulations and codes that are applicable for the project you are interested in doing. Discuss with them how many projects they are managing. This will give you an understanding of how slow or fast they will be able to take on your project as well as how in demand they are (which could be a good thing!).

Meet the Contractors Face-to-Face

Hawaii VA Loans believes in the power of a good, old fashioned in-person meeting. There’s a lot you can discover about a person by meeting them and essentially “sizing them up.” Are they professional? Are they friendly? Are they knowledgeable? Are they detail oriented? Do you feel like you can trust them? These are all questions that should be answered from a face-to-face meeting. See “6 Additional Questions to Ask a General Contractor” at the end of his post.

Be a Detective

Do some quality investigative research on the contractors. Contact the Better Business Bureau and the state’s consumer protection agency to find out more about their companies (make sure they have no prior judgments against them from previous jobs). Use online review sites to get a sense of overall customer satisfaction. Ask the company for a list of references and projects you can visit to see their work in-person. If they don’t have any, that could be scary! Most importantly, verify that they are licensed contractor so you won’t be held responsible for any work that is not to code or injuries workers incur on your job.

Get Estimates

After they’ve seen your property in-person, ask the contractors for estimates and have them break down the costs. Materials alone can make up 40% of the estimate. The contractor may ask you for blueprints if you previously worked with an architect, your budget, and your start times. Use the estimates as a guide and ultimately choose the contractor who communicates the best and has the best reputation.

Do not let a contractor:

  • Give you a quote before seeing the job.
  • Demand a large deposit to purchase materials. Most contractors will have a charge account with suppliers.
  • Insist you sign a contract on the first visit.

Confirm The Details Before Work Begins

Payment: On a large project, you will likely pay 10% to start followed by three milestone payments of 25% and ending with a payment of 15% of the total project. Use the milestones to reassess the contract and making sure it is being met.

Time: Make sure you have communicated with the contractor about the window of time for the project.

Expectations: What are your responsibilities in the project? Do you need to remove furniture or board a pet? Discuss with the contractor what he or she expects of you.

Get Everything In Writing

The following items should ALL be in writing:

  • Payment schedule
  • Proof of insurance (liability and workers’ compensation)
  • Start and completion dates
  • Lien releases from all subcontractors and suppliers (obtained by the contractor)
  • Detailed description of the project (including materials being used and what is being subcontracted)
  • All building permits obtained by the contractor and reassurance that work will be compliant with building codes.
  • A statement of warranties, including what is covered and for how long
  • A statement of contractor’s liability and property damage insurance
  • Price and terms of payment

6 Additional Question To Ask a General Contractor

  1. How long have you been in business?
  2. Who will supervise the project on-site?
  3. Who will be my point of contact for job progress and other issues?
  4. What work will your employees do?
  5. What will you subcontract?
  6. What efforts will you make to ensure your site is clean and safe and prevent dust from entering the living areas?

One last thing… never feel bad for asking too many questions or making the contractor put everything in writing! This is your investment and their profession. If a contractor tries to tell you that it’s not necessary to have any one of the above in writing, you can refer them to this blog post. Hawaii VA Loans has your back!

As Hawaii’s longest running VA loan specialized lender, the Hawaii VA Loans team will make sure to get you on your way to becoming a Hawaii homeowner. Contact us at 808-792-4251 or complete our short online application.

Brad Vilgos
By Brad Vilgos 12th October 2017 0 Comments

Disability Rating After Loan Closing: How to Get Your VA Funding Fee Back

Update: As of August 9, 2019, the VA Funding Fees have been changed. See the updated funding fee table and more information here: https://hawaiivaloans.com/va-funding-fee/

The VA Funding Fee is a payment made at loan closing by a veteran who is utilizing their VA benefits to finance their home purchase. The fee can be paid by cash or it can be financed (rolled into the loan).

The payment goes directly to the VA and helps to reduce costs of the VA Home Loan Guaranty program to taxpayers. The funding fee amount (see VA Funding Fee Table) is based on a veteran’s military category (Regular Military, Reserves or National Guard) and the type of loan (purchase loan, refinance loan, etc).

VA Funding Fee Exemptions

There are servicemembers and veterans who are exempt from paying the VA Funding Fee.

The exemptions include:

  • Veteran receiving VA compensation for a service-connected disability, OR
  • Veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay, OR
  • Surviving spouse of a Veteran who died in service or from a service-connected disability.

VA loan borrowers who are exempt from paying the funding fee will have their exemption indicated in their Certificate of Eligibility (COE).

What happens if a disability rating is given to a veteran AFTER loan closing?

Can he or she receive a refund of the VA Funding Fee they originally paid? If the disability rating is confirmed by the VA, the answer is YES.

To begin, once the veteran receives their disability rating, he or she should use their current mortgage statement to reach out to their lender and their local VA office for guidance on obtaining a retroactive VA Funding Fee refund.

Here’s an example of how the refund process will work:

  1. After receiving a VA disability compensation, the veteran requests to have their Certificate of Eligibility (COE) updated. The veteran’s mortgage lender (like Hawaii VA Loans) can help do this with the required documentation (ie: VA disability award letter, DD-214, etc.)
  2. Once the COE has been updated to reflect the correct VA disability rating, the COE and refund request needs to be submitted by the veteran’s lender to the VA Department.
  3. After submission, the veteran’s current lender will work with the VA Department for verification and apply a one-time principle reduction payment (lowering your loan balance) in the amount of the originally charged VA Funding Fee at the time of loan.

Please note that this process will take some time AND the veteran will be the sole initiator of notifying an updated disability status to their lender. Rest assured that when you’re working with a local lender like Hawaii VA Loans, we’ll always be ready and willing to assist you!

For more information about how you can use your VA loan benefits to become a Hawaii homeowner, contact us here or call 808-792-4251.

Brooks Onishi
By Brooks Onishi 20th July 2017 0 Comments

BAH Breakdown: What Can Your Housing Allowance Buy?

Aloha, service members! Here at your local VA mortgage lender, 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, Hawaii BAH style. We’ll leave the break dancing to you – for after you sign those closing papers.

What Can Your BAH Buy?

When you’re PCSing to Hawaii and desire to buy an island home with your VA home loan benefits, one of the Oahu neighborhoods you’ll likely hear about first is the Ocean Pointe community in Ewa Beach. For good reasons! There’s newer, affordable construction (let’s hear it for central AC!), a convenient commute to multiple military installations, close proximity to beautiful beaches and parks, and easy access to a variety of shopping needs.

The home we are highlighting today for sale in Ocean Pointe, 91-1311 Kaileolea Street, hits all those location marks, of course, and it amplifies them, because the interior of this property has been completely remodeled – and done so in terrific taste!

There’s simply no room in this home that cannot immediately be made yours.

Take a look:

About the Area: Ewa Beach

Approximately 16 miles from Honolulu International Airport, the postal code for Ewa Beach extends inland to the developments of Ocean Pointe, ʻEwa Gentry, Iroquois Point, and ʻEwa Villages.

In the late 19th century to early 20th century, ʻEwa was one of the large population centers on the Island of Oʻahu, with industry focused around sugarcane production. The ʻEwa Mill was a major employer that set up residential villages. Sugarcane is no longer grown on the ʻEwa Plain and Ocean Pointe, Ewa Gentry, and Ewa Villages are now part of Oʻahu’s new suburban growth center. This area is now referred to as Oʻahu’s Second City, with a city center (downtown) located in Kapolei with the newly built family- friendly shopping, dining, and event experience at Ka Makana Ali’i – The Center for West Oahu.

Now let’s learn and see more about 91-1311 Kaileolea Street.

Inside Scoop

  • 4 bed
  • 3 bath
  • 1,566 sq ft.

More Details

  • Full bedroom and bath on first floor
  • Remodeled in 2016
  • New stainless steel appliances, high capacity washer & dryer
  • New laminate flooring, new carpet
  • New interior painting

The BAH Breakdown

  • Where: 91-1311 Kaileolea Drive Ewa Beach HI 96706
  • Oahu military bases nearby: Schofield Barracks – 15.7 miles; Wheeler Army Airfield – 14.8 miles; Pearl Harbor – 17.6 miles; Tripler Army Medical Center – 18.6 miles
  • Points of Interest: Airport – 17.6 miles; Ka Makana Ali’i – 4.7 miles; Ko’Olina – 11 miles; Downtown Honolulu – 21.9 miles
  • Property type: Single Family Home
  • Asking price: $665,000

Rates

  • Interest Rate: 3.875%
  • APR: 4.192%

Total Estimated Monthly Payment = $3,536.27 (PITI)

What BAH Rates Cover This Monthly Payment?

Service Members with Dependents

The 2017 Hawaii BAH Rates support the ability for ranks W-5 and O-4 and above with dependents to afford this property if purchased at its asking price. For ranks E-9, W-4, O-2E, O-3E, and O-3, monthly BAH falls slightly below the estimated monthly payment of this property and can still be affordable with supplemental income from a spouse.

Who to Contact

Would you like to find out what purchase price you qualify for? Contact VA Loan Specialist, Brooks Onishi at 808-372-7092.

For questions about this home or other available listings on Oahu, contact agent Adrienne Lally of Keller Williams at 808-227-2703.

Follow us for more BAH Breakdowns as we post them!

Erin Delgado
By Erin Delgado 26th October 2016 0 Comments

More Than An Email: Why We Believe In Building Relationships with VA Homebuyers

What’s the value behind choosing a local VA loan lender? Local is more personal. It’s about making direct connections. It’s about building relationships.

By definition, the term “local” means belonging or relating to a particular area or neighborhood, typically exclusively so. When we think of a product being locally made, we imagine a small business using local materials and resources to create the product they’re selling. It conveys a sense of warmth in manufacturing and transforms a purchase into an investment.

In Hawaii, we learn about the benefits of local produce. Farm fresh, sustainable foods, organic fruits and vegetables that are grown right here by island farmers. It elevates the wholesomeness, adds to the nutritional value of what we purchase, and puts a smile on our faces. Local feels (and tastes) good!

Perhaps Maslow’s hierarchy of needs (which suggests that all humans have universal needs that must be met in order to reach their full potential) would be more collectively fulfilled if physiological needs (food, shelter, etc.) were achieved more through local means.

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How so?

When you choose a trusted, neighborhood business with a history of quality and success, a company that values their work and their relationship with you, the needs for safety, security, belonging, connection and confidence are unanimously satisfied.

As a local VA loan lender in Hawaii, we truly believe in providing that security and connection by building relationships with VA loan homebuyers.

When we talk about building relationships, it means we value the spoken word, conversation, and as we call it here in Hawaii, talking story. Don’t get us wrong, email and text are very useful (and we indeed utilize them), but we believe in taking the extra time to get to know what you need during the homebuying process. It is a philosophy that involves shaking hands, sitting down, and hearing your voice.

Here’s how we get to know you as a VA homebuyer:

You can visit our neighborhood offices in Oahu.

Our first office opened in Downtown Honolulu in 2007.  Realizing most of our customers preferred not to drive to town to meet, in 2013 we decided to move our offices to Kapolei –  an accessible location for the Joint Base Pearl Harbor-Hickam and Schofield Barracks areas. We were excited to open our second office in Kailua in 2015 to increase our engagement with the Marine Corps Base Hawaii and Windward community. When you walk into one of our offices, you’ll feel the aloha when you’re greeted by a team member.

You can meet us at our monthly VA Homebuyer Seminars.

Every month, we host a VA homebuyer seminar at one of our two office locations. The seminar runs about an hour. We share with you all of our knowledge about qualifying for a VA loan, the VA homebuying process in Hawaii, what BAH can buy in today’s market, how you can buy a home with no down payment, and more. You have the opportunity to ask any questions you have – in person.

You will have direct communication with your VA Loan Specialist.

The Hawaii VA Loans team is comprised of VA Loan Specialists and individuals who live and work in Hawaii. Many of our team members have been raised in Hawaii and went to high school and college here. Many of our team members are veterans or military spouses. Many have used their VA home loan benefits to buy a home in Hawaii. The connection you’ll make with us is one that we cherish. All of our VA Specialists give you their personal phone numbers and email addresses to contact them directly.

We believe your service deserves our time and energy.

Let’s be real. There’s no greater commitment than the one you have made to the country. You deserve to be taken care of, not put on hold. We find that our strategies for making personal connections help to resolve your questions quicker, decrease the likelihood of miscommunication, and increase satisfaction.

We make a proactive call to every listing agent of a property you make an offer on.

It’s another personal touch to generate connection and hopefully give our VA homebuyers that extra chance that their offer is accepted.

When you’re ready to get started on using your VA loan to buy a home in Hawaii, give us a call at 808-792-4251, RSVP to an upcoming seminar or come by one of our offices.

Kapolei

338 Kamokila Blvd. #202
Kapolei, HI 96707

Kailua

111 Hekili St. #102
Kailua, HI 96734

See you soon!

Erin Delgado
By Erin Delgado 18th August 2016 0 Comments

The VA Loan Process: Part 2

After you’ve completed Part 1 of the VA loan process, you are well on your way toward using your VA benefits and completing the purchase of a home with your VA loan in Hawaii! Let’s briefly recap what the two parts of the VA loan home buying process consist of:

  • PART ONE of the VA loan process is pre-escrow. It starts with VA loan pre-approval and continues until the start of escrow (when you’ve made an exciting offer on a home and it has been accepted).
  • PART TWO of the VA loan process involves the escrow process and ends with loan funding and recordation (and the keys to your new home).

As you continue through the escrow process, your VA Loan Specialist and real estate agent will continue to help guide you through until you have the keys to your new home in hand.

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The VA Loan Process: Part 2

Step 1 | Meet with your VA Loan Specialist

Once you’re officially in escrow, it’s time to meet back up with your VA Loan Specialist to sign the Loan Application and disclosures. You’ll also need to provide updated income and asset documentation to update your file. During this meeting, your VA Loan Specialist will go over your loan details and potentially lock in your interest rate.

Step 2 | Loan Processing & Inspection

The next step involves a Loan Processor to review your file and request necessary items from third parties such as escrow, appraiser, insurance agent & the IRS. Three important inspections will be ordered; the home inspection, VA appraisal & termite inspection.

Step 3 | Submit to Underwriting

Once the file is reviewed and packaged together by the Loan Processor, the file is then submitted to Underwriting. The Underwriter is responsible for ensuring the loan meets loan guideline requirements and verifies the documentation provided is satisfactory.

Step 4 | Satisfy Loan Conditions

A Conditional Loan Approval letter is generated by the Underwriter which outlines the outstanding items needing to be completed prior to loan approval. Your VA Loan Specialist will coordinate with you to satisfy these remaining conditions.

Step 5 | Closing

Once all loan conditions have been met, you’re off to escrow to sign the final closing documents.

Step 6 | Loan Funding & Recordation

Once closing documents have been officially signed, the lender will wire the funds to escrow and officially fund the loan. In Hawaii, the recordation of your mortgage and deed takes place 48 hours after escrow’s receipt of funds. Once your loan is recorded with the Bureau of Conveyances, you’re officially a new homeowner!

That’s it for The VA Loan Process: Part Two. If you have questions about getting started, don’t hesitate to call us at 808-792-4251. To find out how much you qualify for, fill out this form and we’ll get in touch. As your local Hawaii VA loan lender, we look forward to helping you become a homeowner.

Erin Delgado
By Erin Delgado 11th August 2016 0 Comments

The VA Loan Process: Part 1

Often times, the word “process” can denote actions that are a bit arduous and lengthy in one’s mind, and we get that! You’ve worked hard and sacrificed so much in order to earn your VA loan benefits, and that’s why we separate the VA loan process into two parts. By doing so, it simplifies and organizes the steps. It also works as a reference tool for you, so that you can gauge how close you are toward officially buying a home with your VA loan in Hawaii!

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  • PART ONE of the VA loan process is pre-escrow. It starts with VA loan pre-approval and continues until the start of escrow (when you’ve made an exciting offer on a home and it has been accepted).
  • PART TWO of the VA loan process involves the escrow process and ends with loan funding and recordation (and the keys to your new home).

Remember, your VA Loan Specialist and real estate agent will be right alongside of you to help guide you through all of these steps, so sit back and get a little more familiar with what will be going on in the world of home buying and VA home loan funding.

We promise that with us, you’ll find the VA process to be much easier than expected. Take it from our happy clients who are now Hawaii homeowners!

The VA Loan Process: Part 1

Step 1 | Get Pre-Approved

It is always recommended to first get Pre-Approved from a VA approved lender before you start searching for a new home. This process starts with a 15 minute phone call to get you prequalified over the phone. Then we’ll need to verify the following documents:

  • Most recent LES or Pay Stubs (one month)
  • Last 2 years W2 statements
  • Last 2 years Federal Tax Returns
  • Last 2 months Bank Statements

We’ll also help you obtain your Certificate of Eligibility. Once you have this paperwork ready, contact a VA Loan Specialist or fill out our VA Loan Request form. A VA Loan Specialist will determine how much you qualify for along with your estimated monthly payments.

Step 2 | Contact a Home Specialist

If you are already working with a real estate agent – great! If you don’t already have a real estate agent, no problem. We work with many agents who have prior experience with VA buyers and VA transactions. We’d be happy to refer you to one!

Step 3 | Narrow Down List of Properties

Based on the loan prequalification amount, your VA Home Specialist will email you a list of properties that fit your specific criteria. From that list, you’ll need to narrow it down to a select few in order for your agent to schedule a showing with the seller’s agent.

Keep in mind that not all condominiums are eligible for VA financing, so if you are thinking of purchasing a condo, use our Condo Check Tool to see if particular condos are approved for VA financing.

Step 4 | View Properties

Once you have narrowed down the list, it’s time to see the properties for yourself. This is where you can really decide which home will be the best fit for you and your family. Remember, pictures don’t tell the whole story. Take a look at a property in person before submitting an offer to purchase.

Step 5 | Submit Your Offer

When you’ve decided which house you would like to purchase, your VA Home Specialist will draft up an offer accompanied by a prequalification letter from your VA Loan Specialist.

Step 6 | Start Escrow

Your offer is accepted! Next stop, head over to your escrow company and submit your check for your initial deposit (a minimum of $1,000) to make it official.

That’s it for The VA Loan Process: Part One. Any questions? Don’t hesitate to call us at 808-792-4251. As your local Hawaii VA loan lender, we look forward to helping you become a homeowner.