Hawaii VA Loans

The credit for first-time purchasers is scheduled to expire November 30.  Meanwhile, housing lobbyists are busy at work gearing up a major campaign to extend the $8,000 home buyer tax credit.

Home builders, Realtors and the Mortgage industry mounted an aggressive campaign during the recent congressional recess.

The expansion — or, at a minimum, extension — of the $8,000 first-time-home-buyer tax credit is at the top of the legislative agenda for the Mortgage Bankers Association, with one of the MBA’s leaders saying the trade group is “very close” to winning that battle in Congress.

The Effects of the Tax Credit So Far

Nationwide, pending home sales have been on the rise for seven months in a row, according to the National Association of Realtors.  But just as auto sales dropped sharply once the government’s Cash for Clunkers program ended, real estate pros are bracing for a letdown if this tax credit disappears.

The IRS estimates that 1.4 million taxpayers have utilized the program.  At these numbers, the total cost of the tax credit is slightly over $11 billion or less than 4% of the overall stimulus package (didn’t AIG get about fifteen times that???).

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Hawaii VA Loans had the opportunity to support a two great causes on September 26th, when it co-sponsored the fourth annual, “Fight Gone Bad” event held at Crossfit Oahu. The proceeds from this event benefited the The Wounded Warriors Project & Athletes for a Cure.

With our main mission of educating Veterans about their VA Loan benefits, it just seemed right to be apart of helping a great charity like the Wounded Warriors Project. The whole purpose behind the Wounded Warriors Project is help wounded and disabled soldiers coming home from Iraq & Afghanistan. With the funds raised by this charity, the Wounded Warriors Project has the ability to “raise public awareness about their needs, to help wounded warriors help each other, and to deliver unique programs to ensure that this is the most successful, well adjusted generation of wounded veterans in our history.”

Hawaii VA Loans was honored to support this event by giving a monetary donation as well as donating bottled water to all the participants who did the “Fight Gone Bad” workout.

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We often get the question from first time homebuyers, “How do I pick a realtor?” It’s a great question and there are several angles to take and nuances to consider. First and foremost, if you are looking to buy a home, you should obtain a Realtor© to help you. The best part of doing do is that obtaining a Realtor should cost you nothing. Realtors, even your (the buyer’s) realtor, are paid by the seller of the home. So don’t worry about price shopping, all you need to shop for is service.

Buying a house is the most important, and often the largest, financial transaction most people will make in a lifetime. You want to make sure that you have an expert helping you through the process. If you don’t know a Realtor, there are a few items to think of when finding and selecting one. The next few paragraphs should help you through the process.

How Do I Begin Finding an Agent?

The first thing you want to do is ask around. Word of mouth may be the very best way to pick a realtor. Talk to everybody you know about the realtor they used and if they would use that realtor again.

If you are new to the area and are unable to find any referrals, there are several ways to go about finding a realtor you like:

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es·crow (ěs’krō’, ě-skrō’)
n. Money, property, a deed, or a bond put into the custody of a third party for delivery to a grantee only after the fulfillment of the conditions specified.

First of all, what are escrow impounds and why should you care? Escrow impounds (often just called ‘escrows’ or ‘impounds’) are fees collected by the lender at closing and then each month in order to pay third party bills on your behalf. Lenders do this to ensure important bills are paid and to help budget for these payments because they are due in lump sums which are often quite large. The homeowner pays these fees each month and the bank holds them in a separate ‘escrow’ account and pays the bills when due.

Typically, for single family homes, the impounds cover the insurance and property tax bills. For condos, insurance costs are paid by the condo association and the condo fees are paid monthly by the homeowner to the condo association, so impounds solely cover property taxes.

Taxes are typically due twice a year, while insurance is paid annually. The lender does not charge for this service and often requires it. For all government insured loan programs (FHA, VA and USDA), impounds are required. For conventional loans, many lenders require it and will charge a fee of 0.25% if a borrower wants to manage these payments on their own. For a $400,000 loan that becomes a cost of $1000.

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When I first spoke with Kelly over the phone back in April, you could just tell that she was very excited about being a first-time homebuyer, yet at the same time a little intimidated by the monumental task of buying a home, qualifying for a mortgage and getting approved even before she even reached the islands.

Well, roughly 3 months later, Kelly is now an official homeowner in a beautiful oceanfront condo, thanks in part to utilizing her VA loan benefits.  It was a sincere pleasure working with Kelly and her agent, Pat Reilly of East Oahu Realty on her purchase transaction.  I do look forward to finally meeting her in person, and we wish her the all the best as she pursues her law degree while living in paradise!

“I am a first time home buyer and just recently moved into my first home that is a dream come true!  While I knew I wanted to purchase a home prior to my move to Hawaii I was unable to leave the mainland during the process.  I was nervous and not exactly sure how it would all work.  I looked into several banks and loan companies until I found Gabe Amey.  As soon as I spoke with him on the phone, I knew that he was the person I wanted to work with.

At first Gabe gathered all of my information and led me in the right direction.  He explained all of my options and what I could expect to happen.  When I finally found my dream home, it was Gabe that provided a pre-approval letter and convinced the sellers that I was financially sound to purchase the home.  During the next 2 months Gabe was at my disposal 24 hours a day (except of course the 6 hours he took off to get married).

Not only was Gabe incredibly professional and competent but he was a true delight to work with and learn from.  I am now in my dream house on the ocean in Hawaii and it is all thanks to Gabe and my wonderful realtors.  For anyone looking to purchase a home in Hawaii I cannot say enough wonderful things about Gabe.”   Thank you again!! ~Kelly

In this current mortgage environment, the VA loan program is arguably the best loan program available to help veterans become a homeowner. Despite the fact that VA loan guidelines are generally more flexible than their conventional loan counterparts, there are still many potential pitfalls that can delay or ultimately kill your VA loan transaction. Here are the 5 most common mistakes to avoid:

Mistake #1: Putting an offer on a condominium that is not eligible for VA financing:

One thing to always keep in mind; not all condominiums (this also includes townhomes) are eligible for VA financing. I’ve seen people fall in love with a particular condo, only to find out later that the condo is not approved for VA financing. If you are certain that you will use a VA loan to finance your purchase, don’t waste your time looking at condominiums that are not eligible for VA financing.

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