Hawaii VA Home Loans

Build your real estate wealth using your VA entitlement...

Hawaii VA Home Loan Benefits

*No down payment and 100% financing for owner occupied loans as long as you have full VA eligibility.      

*Up to $695,750.00 in Honolulu and $625,500.00 in all other counties. (For One to Four unit residential properties.)

* VA Jumbo Loans:  25% down on the difference between $695,750.00 (Honolulu County, all other counties in Hawaii $625,500.00) $417,000 (U.S. Mainland) and sales price up to $1,500,000.00.

* Home must be in good condition (no tear downs, fixer uppers need repairs to be completed prior to closing)

* All improvements must be completely permitted. (This helps ensure Veterans won't be overwhelmed with a money pit of repairs for structural, electrical, or plumbing items that are behind walls which after repaired, owners and guests can't appreciate visually.)

*No PMI (private mortgage insurance). VA guaranties 25% of the appraised value of the home allowing the veteran not to have to pay for PMI.

*The Veteran can refinance their current VA loan to reduce their interest rate and include closing costs without qualifying, regardless of property value.

*The seller can pay all or part of the closing costs associated with the process and closing of the mortgage plus up to 4% seller concessions.  Note:  VA used to require sellers to pay points and non-allowable closing costs.  (Now, the seller doesn't have to pay anything, the buyer just can't pay for non-allowable closing costs).

*Disabled veterans rated at 10% or higher are exempt from funding fee.

*Cash out refinances up to 90% of appraised value.

*No prepayment penalties.

* A Veteran homeowner can rent out his home after the Veteran or their spouse occupies the property as their primary residence for a minimum of one year.

For a list of VA Allowable and Unallowable Fees or Search for VA approved Condos, Contact Ronda. (Click Here)


Use a loan officer who is familiar with VA Home Loan guidelines and easily can help you with the entire process:  from credit repair if needed, getting preapprovals, pulling credit, running an automated approval, help you obtain your COE (certificate of eligibility) quickly, educate you on your lending options, help you or your realtor get a building or property VA approved, anticipate any and avoid pitfalls   regarding the property transaction, help structure your financing plan so you can reach your financial and wealth asset goals, and communicates with your agent timely. 


VA Myths

(Real Estate Financing Instructor Tony Dias often teaches Veterans how to utilize their BAH (Basic Housing Allowance) and use their home loan benefit.  He found that a number of Veterans still clung to these below myths:)


I can only use my VA benefit for my first home... Not True!  Once the current VA loan is paid off, another VA loan can be originated.  The VA Funding Fee will be higher if there is no down payment but another home can be purchased.

The Seller won't accept my offer because he/she has to pay the points.  Not True!  Even though the Seller in a VA transaction is allowed to pay for all costs associated with the sale, there is no longer a requirement that the Seller must pay any points for the Veteran's mortgage loan. 

The Seller won't accept my offer because he thinks it takes a long time.  Not True!  Today 

I can only buy a house up to $240,000.00 and still use my VA benefit.  Not True!  Recent legislation increased loan limits including any financed VA Funding Fee.

My Spouse's income can't be used to help qualify for the home we want.  Not True!  A spouse's income can be used as long as it is stable and likely to continue.

I cannot let someone other than a veteran assume my VA mortgage.  Not True!  Anyone can assume a VA loan as long as they are considered credit worthy and qualify to be able to make payments.  However, a portion of the Veteran's elibility will be linked to this loan and it will affect the amount of future loan eligibility until the loan is paid off.

I must pay the Funding Fee even though I have a VA Disability.  Not True!  If the Veteran has a qualified VA Disabiiity they are exempt from paying the Funding Fee.

I have a partial down payment and I'm told I must still pay the entire Funding Fee.  Not True!  If the Veteran can put down at least 5% of the Purchase Price/Appraised Value, then the Funding Fee is reduced.  This would also apply if you are a subsequent user of the VA Benefit or a Reservist or National Guardsman.

I don't have a full two year's of service so I was told that I'm not eligible.  Not True!  There are a number of events where the two year requirement is not needed.

Here is what a happy VA buyer had to say:

Exceptional Service Provided by Ronda Ching Day (RA) while assisting us in our real estate transaction

1) Professional Expectations:
• used e-mail to notify us of V.A. approved condos in Waikiki
• contacted representatives directly at the Veteran’ Administration and obtained V.A. approval paperwork quickly, as needed by mortgage underwriters at the bank
• excellent liaison with our banker, escrow agents and seller’s agent; prompt e-mail copies of all correspondence/communication
• corresponded frequently with the seller’s agent to keep on schedule for the contract, bank and escrow
• very knowledgeable about comparables and pricing
• very thorough in all paperwork
• assisted us by recommending home inspectors and termite inspectors
• explained the V.A. loan process to the seller’s agent, then referred him to our banker for further clarification

2) Exceptional Service:
• communication: quickly available by text message; prompt response to e-mail
• arranged viewing on Saturday at short notice; quickly submitted our offer on Sunday
• thoroughly explained all aspects of the contract, provided suggestions and tips, like home exemption application; very helpful to first-time homebuyers
• stopped by in person to collect signed documents as needed
• recommended appliance repairman to seller’s agent to repair dryer
• worked well with our banker to ensure an even earlier closing date
• lovely, surprise housewarming gift

3) Thorough Follow-up:
• ensured all parts of the contract were completed ahead of, or on schedule
• accompanied us to escrow signing and final walkthrough; was very helpful
• e-mailed after our move-in to inquire about our new home

4) Fair Dealings:
• helped with suggestions of a fair price and contract that would be accepted by the seller
• minimized the need for more than one counteroffer
• very knowledgeable about an appropriate timeline for the contract, to ensure that it was fair for the buyer, seller, banker and escrow
• worked closely with seller’s agent and communicated frequently

" D.S.

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