Buying a Home in Hawaii with a VA Loan in 2012

One of the best benefits given to active to military is housing.  When I speak of housing I am not talking about base housing which has been greatly improved in Hawaii the last few years.  I am speaking about VA benefits to purchase a home.

The VA loan program is an extremely attractive program for active duty soldiers and veterans.  The VA loan program offers 100% financing.  In Honolulu County (the island of Oahu) the limit for 100% financing in 2012 is: $695,750.  If the vet wants to buy a home for more than that amount most lenders require 25% down for the amount above the limit. 

Besides offering the 100% loan program, active duty soldiers also receive BAH (Basic Housing Allowance).  On Hawaii an E-1 with a dependent receives $1860/ month, while on the high end an O-7 and above receives $3423/month.  That is above and beyond their pay and cost of living allowance.  What makes this significant is that not only does an active duty soldier have a wonderful mortgage program, but the government gives them a housing allowance to make the payments.

There are a few differences between using a VA mortgage compared to using a conventional loan.

     1)      The VA provides a guarantee to the lenders.

     2)      The VA has a streamline program for refinancing loans.

     3)      VA loans are assumable.

     4)      The appraisal process is handled by the VA and an NOV (Notice of Value) is issued.

     5)      The VA restricts some of the closing costs paid by the buyer.  These are known as non-allowables.

In Hawaii we have several military bases and a large number of veterans.  In my real estate business, Active duty military and veterans account for over half of my business.  With the number of VA transactions I do, I have been able to put together support services with local venders and lenders for VA buyers.  A great example is that a few of the local lenders pay the VA non-allowables, so the buyers do not have to negotiate that from the sellers.  Other venders offer discounts to military, such as home inspections.

If you are considering buying a home in Hawaii and would like to know how using your VA benefit will impact you, please contact me anytime.  I would be honored to assist you. 

Good luck and Happy House Hunting!

 

 

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Randy L. Prothero, REALTOR®, ABR, AHWD, CRS, e-PRO, GRI, SFR

Century 21 Liberty Homes

 

Randy Prothero is well established as an expert in working with military / VA clients and first time home buyers.  His home seller's (listing) campaign is one of the most aggressive marketing programs in the area.

Based out of Mililani, Hawaii. Randy services the island of Oahu (Honolulu County) and the Leeward Regional Chairman of the Honolulu Board of Realtors.  To improve overall professionalism in his area Randy also offers classes for real estate agents. 

 

www.HawaiiRandy.com *  Oahu (Honolulu County) Property Search  *  Hawaii Military Relocations