Hawaii VA Loans

We’re excited to announce our new 2010 edition of our VA Homebuyers’ Guide. This updated guide is an expanded version of our original guide that includes information regarding the new VA loan loan limits for all four Hawaii Counties for 2010. In addition, we’ve included a list of the “Top 5 Mistakes a Veteran Should Avoid When Doing a VA Loan”. This write-up is a compiliation of our experiences closing VA Loan transactions in the past & critical information to help Veterans avoid some possible pitfalls when doing a VA Loan.

Here’s the table of contents:

• Introduction
• Understanding VA Loans
• Benefits of Homeownership
• VA Loan Benefits
• Entitlement
• Eligibility
• Certificate of Eligibility
• Occupancy Requirements
• The Funding Fee
• Condo Eligibility
• 5 Mistakes a Veteran Should Avoid
• The Home Buying Process
• Conclusion
• About the Authors

We’re a little bias, but we think that this guide is a must read for anyone interested in utilizing their VA loan benefits to purchase a home in the future. Feel free to download your free copy here.

With the new year, comes new VA loan limits. Unfortunately, to the surprise of many, the loan limits for 3 out of 4 Hawaii counties have gone down considerably.

• Honolulu County: 2010 VA Loan Limit =$700,000 (2009 Limits - $783,750)

• Hawaii County: 2010 VA Loan Limit = $625,500 (2009 Limits - $625,500)

• Kauai County: 2010 VA Loan Limit = $625,500 (2009 Limits - $775,000)

• Maui County: 2010 VA Loan Limit = $625,500 (2009 Limits - $681,250)

You would think that the the new loan limits are in direct correlation to the median sales prices in those particular counties, but we found a few anomalies that contradict this as referenced below:

According to City-Data.com, below are the median sales prices for a house or condo in 2008 (most recent numbers I could find):

• Honolulu: Median Sales Price = $606,800 , 2010 VA Loan Limit = $700,000

Now check out the relationship between median sales price and 2010 VA Loan limits for the following three counties:

• District of Columbia: Median Sales Price = $474,100 , 2010 VA Loan Limit = $768,750

• Fairfax, VA: Median Sales Price = $427,679 , 2010 VA Loan Limit = $768,750

• Pitkin, CO: Median Sales Price = $308,174 , 2010 VA Loan Limit = $1,094,625

Now keep in mind that these median sales prices are for 2008, but really, has the values in these counties gone up that considerably since (if at all)?

I am sure you all are aware of Hurricane Katrina, yes, that’s right, the awful mess we all saw unfold on national TV. I was astounded that a disaster so atrocious could be happening in our great country. Well, believe it or not, we are going to feel its effect all the way out here in the Pacific…and years later. What do I mean? Well, ever since those levees in New Orleans broke, the government is determined not to let that happen again. To ensure that cities, counties and towns take action, every levee in the country must be accredited or re-accredited by February 1, 2010. If a levee is not accredited, then flood maps will be redrawn and affected areas re-zoned. We have ten such levees here in Hawaii, but none will have a greater affect on its surrounding residents than the Kawainui Marsh Levee in Kailua. Here’s the bottom line, if this Levee is not certified in time, the whole Coconut Grove area of Kailua will be re-zoned to the highest risk flood zone and flood insurance will be required by lenders on any financed house in that area.

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Remember a few years back when Google Maps launched their ambitious new satellite tool that allowed you to see what your home looks like from space? If you thought that was impressive, wait until you see what Google just released for the Hawaii market; a tool called Street View. Street View allows you to see what a property looks like at street level, right from your computer screen. In addition, with the click of a few arrows, Street View allows you to move up and down that street as if you were taking a stroll in the neighborhood.

As you can imagine, this new feature, which which has been available in other mainland and foreign markets but only available in Hawaii as of last Monday, has major implications for home buyers scouting out their upcoming home purchase. There are already great web services that provide online MLS listings for Hawaii, but the pictures used in these applications are images provided by the listing agent as well as an aerial view supplied by online map provider such as Google or Microsoft. Now the aerial views are great, but it doesn’t give you the “curb appeal” of a particular property and you can bet the seller’s agent will only show images that display the property in the best possible angles which could be deceiving.

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Hooray! Last week, Congress passed and Obama signed the new Homebuyer Tax Credit into Law. Not only is it an extension of the $8000 first-time homebuyer tax credit, but it also adds a $6500 tax credit for repeat/move-up homebuyers.

This new version of the tax credit is part of The Worker, Homeownership, and Business Assistance Act of 2009, and extends the credits through purchase contracts dated April 30, 2010 or prior; however, the transactions must close by June 30, 2010.

Here’s a quick summary of the new version of the tax credit:

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As Veterans Day approaches, the team at Hawaii VA Loans would like to say Thank You to all the service men and women who currently serve or have served in our armed forces. We all owe a debt of gratitude for your service to our country.