MILITARY VETERANS AND THE VA HOME LOAN GUARANTY
BY: DAVID KUCIC, HAWAII REAL ESATATE AGENT, US ARMY (RETIRED)
All qualifying veterans are entitled to this program. It allows them to obtain a home loan up to $625,500 in Hawaii for 2007 depending on what they personally qualify for. With Operation Iraqi Freedom and Operation Enduring Freedom plus all of the other contingencies going on around the world, there are a lot of Veterans qualified for this loan program. National Guardsmen and Reservists that were activated and sent overseas to combat zones are now qualified also. YOU JUST WOULDN'T BELIEVE HOW MANY OF THESE YOUNG MEN AND WOMEN DON'T EVEN KNOW THEY ARE QUALIFIED. If you are a lender and you live near a National Guard Armory or Reserve Center, check with one of the Soldiers on duty and see if you can give them a class on the loan program. The website for the program can be found at The Department of Veterans Affairs under the VA Home Loan tab.
If you are an extremely motivated Realtor, do the same! I have personally given classes on the program and I take my VA lender with me.
There are a few important facts about the VA home loan that many realtors don't know about and may not advise their buyers to check with their lender about. Here is a list of some things that make this program different:
•· The VA home loan will allow the Military Service Member to obtain 100% financing without having to pay PMI
•· There is a 2.15% VA Funding fee for first time users (3.35% for subsequent use). If the qualifying veteran is at least 10% disabled, this fee is waived. The disability story is a whole new post and unfortunately, there are many veterans out there that are more than qualified for disability compensation but they are not receiving it. Check with your local VA or DAV to see if your veteran is qualified.
•· There are two calculations that can be used to qualify the veteran for the loan: It can be by the standard debt to income ratio calculation or it can be done by residual income. Your lenders should have all of the details on the residual income but it depends on your area of the country that you live in as to what residual income the veteran must have in order to qualify. The residual is a monetary amount and also depends on the amount of family members.
•· The credit score of the veteran really isn't a disqualifying factor and does not change their interest rate. As long as they are qualified, they will get the best rate.
•· If the credit score is extremely low and it has to do with collections or bankruptcies, then that could be a disqualifying factor. Bankruptcies must be older than 2 years and there cant be anything in collections (currently). Letters may have to be written by the veteran to the VA explaining why they were delinquent in the past.
•· The VA loan can be used more than one time as long as it is paid off and closed out on the first property.
This loan program is really a great way to put a family into a home if they cannot qualify for a conventional loan for one reason or another. So the next time you are representing a buyer, check with them to see if they have VA Home Loan eligibility and make sure they check with their lender to inquire about the program.
Sellers and sellers agents.....don't get upset if you have an offer put in from a VA borrower! All of my lenders here in Hawaii offer to pay the VA non-allowables for the borrower and therefore, THERE IS NO COST TO THE SELLER!
Do you use this program? How popular has this program become in cities where there is a National Guard Armory or Reserve Center since Operation Iraqi Freedom and Operation Enduring Freedom?
MILITARY BASES, POSTS AND FORTS ON OAHU, HAWAII AND POHAKALOA TRAINING AREA BIG ISLAND OF HAWAII
Schofield Barracks: Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii Schofield Barracks and adjoining Wheeler Army Airfield are the 2nd Brigade, 3rd Brigade, Aviation Brigade, 45th Sustainment Brigade and the 8th Military Police Brigade. In addition, the 8th Theatre Sustainment Command, 65th Engineer Battalion, 25th Special Troops Battalion and the 556 Personell Service Battalion are also part of the Division team and play an integral role in the success of the Division.
The 25th Infantry Divison has proudly served in numerous wars and conflicts around the globe. The Soldiers that make up the division are currently deployed to several locations to include Iraq.
Pearl Harbor: Pearl City, Pearlridge, Aiea, Salt Lake, Honolulu, Waipahu, Oahu, Hawaii
Hickam Air Force Base: Pearl City, Pearlridge, Aiea, Salt Lake, Honolulu, Waipahu, Oahu, Hawaii
Marine Corps Base Kaneohe: Kaneohe, Kailua, Oahu, Hawaii
Camp H. M. Smith: Salt Lake, Moanalua, Honolulu, Aiea, Pearl City, Pearlridge, Oahu, Hawaii
Tripler Army Medical Center: Salt Lake, Moanalua, Honolulu, Aiea, Pearl City, Pearlridge, Oahu, Hawaii
Fort Shafter: Salt Lake, Moanalua, Honolulu, Aiea, Pearl City, Pearlridge, Oahu, Hawaii
Wheeler Army Airfield: Mililani, Wahiawa, Kapolei, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii
Helemano Military Reservation: Wailaua, Wahiawa, Mililani, Haleiwa, Oahu, Hawaii
Kahuku Training Area: Kahuku, Oahu, Hawaii
Kilauea Military Reservation: Hilo, Kona, Hawaii
Pohakuloa Training Area: Hilo, Kona, Hawaii
Makua Military Reservation: Waianae, Nanakuli, Makaha, Oahu, Hawaii
TEMPORARY LODGING FACILITIES FOR THE ARMY, NAVY, AIR FORCE, MARINE CORPS, COAST GUARD, RESERVISTS, NATIONAL GUARD, DOD CIVILIANS AND RETIREES ON OAHU, HAWAII
The Hale Koa Hotel on Waikiki Beach: Honolulu, H
The Inn at Schofield Barracks: Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii
Navy Lodge Hawaii at Pearl HarborThe Beach Cottages at Kalaeloa (formerly Barbers Point NAS): Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii
GOLF COURSES ON OAHU, HAWAII FOR ARMY, NAVY, AIR FORCE, MARINE CORPS, COAST GUARD, RESERVISTS, NATIONAL GUARD, DOD CIVILIANS AND RETIREES
Leilehua Golf Course (Army, Schofield Barracks) Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii
Walter Nagorski Golf Course (Army, Ft. Shafter)
Kaneohe Klipper Golf Course (Marine Corps, Kaneohe Bay)
Barbers Point Golf Course (Navy, Barbers Point): Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii
Navy Marine Golf Course (Obvious Right?)
COMMISSARIES ON OAHU, HAWAII FOR ARMY, NAVY, AIR FORCE, MARINE CORPS, COAST GUARD, RESERVISTS, NATIONAL GUARD, DOD CIVILIANS AND RETIREES
Schofield Barracks Commissary near Wahiawa, Waipahu and Mililani, Hawaii Kaneohe Marine Corps Base Commissary near Kaneohe and Kailua, Hawaii Barbers Point Commissary near Kapolei, Ewa Beach and Makakilo, Hawaii Pearl Harbor Commissary and Hickam Air Force Base Commissary which are both near the cities of Pearl City, Pearlridge, Aiea and Honolulu.