$625,500 Not Enough? VA Increases Guaranty To Cover $793,750 Loan Amount
It’s official. Included in the Housing and Economic Recovery Act of 2008 that President Bush signed, is Section 2201 that calls for the “Temporary Increase in Maximum Loan Guaranty Amount for Certain Housing Loans Guaranteed by the Secretary of Veterans Affairs”.
In essence, from July 30th 2008 - January 1st 2009, the VA Department will increase their guaranty amount to cover 25% of the greater of the two:
- $625,500 (for Hawaii, Alaska, Guam and Virgin Islands), or $417,000 (Continental 48 states).
- 125 percent of the area median price for single-family residence, up to $1,094,625 (Hawaii, Alaska, Guam and Virgin Islands) or $729,750 (Continental 48 states).
What Can Your Housing Allowance Buy (8/13/08)?
This is our second installment of our segment, “What Can Your Housing Allowance Buy?”, in which we feature properties currently for sale and determine what pay rank in the military you need to be in order to have your housing allowance cover the the mortgage payments (with no down payment).
Today’s property is beautiful executive home that is listed roughly a $100,000 below the current tax assessed value ($694,200).
Ocean Pointe, Ewa Beach - $599,000
91-1051 Kaikala Street
Ewa Beach, HI 96706
Land: 4,491 sqft
Interior Living Area: 2,131 sqft
Bedrooms: 4
Bathrooms: 3/1
Monthly Taxes: $200
MLS #: 2813378
Description: Short Sell. New Ocean Pointe executive home never lived in! Home has over $73k in upgrades through the developer including recessed plantation shutters, 16 & 20 inch ceramic tiles throughout, Corian Countertops, and best of all a detached 2 car garage with separate mother-in-law studio or guest suite/game room.
VA Loan Benefit: VA Not Subject to “Loan Level Price Adjustments” Based On Credit Score & LTV
I remember when having above a 700 Fico (credit) score was superb. If you had a 720, you were in elite status and able to get the best loan rates around. Fast forward to 2008 - and a 720 Fico score no longer guarantees a borrower the lowest mortgage rates.
Here’s how this all started. In December 2007, Fannie Mae (FNMA) & Freddie Mac (FHLMC) (the two government sponsored agencies in charge of buying and selling mortgages on the secondary market which helps replenish the supply of capital in the mortgage market) implemented new Loan Level Price Adjustments based on credit score & loan-to-value.
Translation: FNMA & FHLMC implemented a tiered price adjustment matrix which increased closing costs for borrowers with lower credit scores and lower down payment. Why did they do this? To compensate for the losses FNMA & FHLMC were taking on the secondary market due to the increased amount of defaults and foreclosures occurring in the real estate market.
Testimonials (Curtin & White)
Hello Gabe,
It’s been two months since you helped us obtain a new VA home loan that enabled us to save money with a reduced interest percentage rate from 6.25 to 5.75! In the two months we have saved hundreds of dollars giving us a peace of mind, knowing that we truly did the right thing by refinancing our original VA home loan. You especially helped during the transition by answering the many questions that we had and doing additional work in order to make the transaction happen and we greatly appreciate all the work you did! We will be recommending you to others that we know who can benefit from your great professionalism, expert knowledge, and helpful attitude.Much mahalo for all you do!
Captain Matthew and Kristy Curtin
Delicia & Kevin White
My husband and I recently located from Hawaii to Georgia but were unable to sell our property because we owed more than what the home was now worth. Kevin and I decided to rent the property, but unfortunately we could not find a renter that could cover our entire mortgage. We contacted Hawaii VA Loans to see what we could do to lower the monthly payments & Gabe Amey, the Branch Manager & VA Loan Specialist advised us that we could participate in a VA Streamline Refinance to lower our interest rates. Gabe explained that since a streamline refinance does not require an appraisal, our home value was not an issue.
During the refinance, Gabe notified us that my credit report showed a recent car repossession that could prevent us from getting our loan approved. The car loan was from a previous marriage . I had co-signed on a car for my ex-husband roughly 10 years ago. Gabe was extremely helpful in this matter, he contacted the creditor, requested an updated balance statement from them and then helped us write a letter of explanation to the underwriter explaining the circumstances.
Through out this process Gabe succeeded in getting our loan approved and helped us lower interest rate and mortgage payment. We are now now saving $167 per month on our mortgage payment which gives us an additional $2,000 a year in savings. We are grateful for the help of Gabe Amey and the Hawaii VA Loans team. Not only did they help us lower our mortgage, the entire staff was friendly and professional and we would highly recommend them to anyone looking to get VA Financing!
Sincerely,
Delicia & Kevin White
Capitol Place - Now VA Approved!
I’m please to announce that recently completed Capitol Place is now approved for VA mortgage financing! Located in Downtown Honolulu, Capitol Place has really set the bar high when it comes sleek and contemporary urban living here in Hawaii.
One, Two & Three bedroom units are currently available with prices ranging from the high $400K range to over $1 million. Here is a complete list of units currently for sale.
To see if a particular condo is VA approved for financing, visit our Condo Eligibility Check Tool on HawaiiVALoans.com. If a particular condo is not on the list, feel free to contact us for details on how to get that condo VA approved.
Here’s more info regarding the building from the developer, PMK Development:
It stands sleek and proud on the corner of Beretania Street and Queen Emma Street, exuding a flair of sophistication. Walk inside and it simply feels chic. The lobby exudes a clean, fresh look that you’re proud to call home.
Each one, two, and three-bedroom residence has been meticulously designed to provide a mood that blends the comfortable and the contemporary. No matter which floor plan you choose, your entry welcomes you in, and flawlessly balanced features all flow from there. Well-appointed kitchens with granite counters and designer details seduce you. Viking appliances and high-end kitchen finishes make the kitchen one of the rooms where friends seem to congregate. This “spare no expense” attitude is apparent in every room at Capitol Place. Bathrooms feature marble counters, while living rooms and bedrooms have the little extras that give them a marvelous understated style.
As night falls, the Honolulu city lights across town take over. Every residence is pre-wired and cable-ready for a relaxing evening at home, should you choose. And sleep comes easy, knowing that you wonմ face a long commute in traffic the next morning.
What Can Your Housing Allowance Buy (7/9/08)?
In our previous blog post we explained how homeownership may not be as hard as you may think - especially if you are eligible for a VA Loan. We touched on a few benefits of VA Loans which include 100% financing as well as reduced closing costs. We also explained that current military personnel have an added benefit in that they already receive a monthly housing allowance to pay or subsidize their rent or mortgage payments.
Today HawaiiVALoans.com is introducing a new segment to our blog called “What Can Your Housing Allowance Buy?”. With this, we will feature a specific property for sale to give examples of how much buying power one would have by just using their monthly housing allowance to cover their mortgage expense (with no down payment).
Mahi Ko at Waikele - $349,000
94-529 Lumiaina Street, #D101
Waipahu, HI 96797
Living Area: 830 s.f.
Lanai (Patio): 92 s.f.
Bedrooms: Two
Bathroom: Two
Parking: Two
MLS #: 2810757
Description: Exceptional Value: GROUND floor, CORNER unit with fenced large yard and patio-great area for BBQ. Ready-to-move in condition freshly painted, with laminate flooring and w-w carpet. Renovated kitchen w/new granite counter top, cabinets, refrigerator and washer- dryer, microwave oven. Hall bathroom: new vanity, toilet, ceramic flooring. Updated light fixtures in living room & kitchen.
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