I am so amazed by how many Realtors and lenders in Hawaii shy away from VA loans.
- The VA does not look at credit scores, making qualifying easier in some cases
- Lower closing costs
- Lower monthly payments; Federally guaranteed, no risk to lender, no mortgage insurance
- Automated loan processing in most cases. Can close faster than conventional loans in most transactions.
- One of of the few types of mortgages that are assumable. A potential big deal in the future if interest rates were to climb.
- Higher closing rate for VA loans over conventional loans.
The VA cap in 2006 is $625,000. The Honolulu Basic Housing Allowance (BAH) for Military ranges from the low of $1355/ Month for an E-1 with no depoendants to $3388/ month for O-7 and above with dependants.
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