Buying a Home with a VA Loan in Hawaii in 2014

Buying a Home with a VA Loan in 2014One of the best benefits given to active 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 2014 is: $625,500. 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 $2607/ month, while on the high end an O-7 and above receives $4218/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 terms of my personal real estate business, Active duty military and veterans account for over half of my business. Over 90% of our Lead Buyers Agent Travis Farris’ business is with military.  With the number of VA transactions we do, we 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 with a VA Loan in Hawaii in 2014 and would like to know how using your VA benefit will impact you, please contact us anytime. We would be honored to assist you.  To learn more about the VA home loan benefit, consider attending an upcoming VA loan workshop on Oahu.

Good luck and Happy House Hunting!

About Randy Prothero

Randy works with both buyers and sellers and takes extreme pride in having placed many first time home buyers in homes. He is an area expert for residential real estate and one of a small handful of agents who specialize in working with VA / Military clients. His services are normally free to buyers.

Contact Randy to start the process of buying or selling a home. He will make it a pleasant experience.

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