By Erin Delgado 6th March 2024 0 Comments

8 Great Long-Term Benefits of Hawaii Home Buying

For many, living in Hawaii is a dream come true. Often times, those who move away from the islands talk about a withdrawal period they experience when readjusting to life on the mainland. It’s true, spending any amount of time in Hawaii can really impact a person’s state of mind. Even more, buying a home in Hawaii can offer several long-term benefits. The combination of personal and financial advantages are too good not to discuss. Without further ado, here are 8 great long-term benefits of Hawaii home buying:

Personal Benefits of Living in Hawaii

Natural Beauty: Hawaii is renowned for its stunning natural beauty, including pristine beaches, lush landscapes, and a tropical climate. Living in such an environment can contribute to a healthier and more relaxed, slower-paced lifestyle.
Quality of Life: Hawaii consistently ranks high in quality of life indices. The tropical climate and outdoor-oriented lifestyle in Hawaii can contribute to improved health and well-being. The opportunity for outdoor activities, such as surfing, hiking, and snorkeling are plentiful.
Cultural Experience: Living in Hawaii provides a unique cultural experience with its diverse population and rich heritage. The state offers a strong sense of community, and embracing the local culture can be fulfilling for homeowners.

Financial Advantages of Hawaii Home Buying

Stability in Tourism-Driven Economy: Hawaii’s economy is heavily dependent on tourism, which can be a positive aspect for homeowners. The consistent flow of tourists can boost local businesses and contribute to economic stability. Thus, indirectly benefiting homeowners through increased local business opportunities and job stability.
Property Appreciation: Historically, real estate in Hawaii has shown a tendency to appreciate over time, making it an attractive long-term investment by providing homeowners with a solid return on investment. Keep in mind, market conditions can vary, and there are no guarantees of property appreciation. Conducting thorough research and consulting with local real estate experts is crucial.
Equity Building: As you pay down your mortgage, you build equity in your home. Over the long term, this equity can be a valuable asset and can be accessed through refinancing or selling the property.
Tax Incentives: Hawaii has certain tax incentives that may benefit homeowners, such as property tax exemptions for owner-occupied residences. It’s important to research and understand the specific tax benefits available.
Potential Rental Income: If you’re not residing in the property full-time, renting it out to long-term tenants could provide a steady income stream.

Ready to take advantage of these great long-term benefits? Call us at 808-792-4251 or fill out our secure online loan application and we’ll get in touch with you. As always, it’s advisable to consider your personal financial goals and circumstances in your quest to become a Hawaii homeowner. We can help you every step of the way!

By Erin Delgado 23rd January 2024 0 Comments

The Hale ‘Ohana Loan Program | Paul & Tarah’s Story

We love a good home buying story! This particular one involves our 100% financing Hale ‘Ohana Loan Program. It’s our newest FHA loan program option available to non-VA buyers here in Hawaii, and like our VA home loan program, it requires no down payment! Paul and Tarah came to us with a dream to become Hawaii homeowners, but they had some obstacles. We analyzed their situation and found that the Hale ‘Ohana Loan Program would be the best fit for them. Find out more about their story below.

Their Dream

Paul and Tarah desired to purchase a Hawaii home. Specifically, a single family home in Waianae, which is on the west side of Oahu. In November 2023, the median price for a single family home in that area was $712,000 (Makaha – Nanakuli region). Paul and Tarah’s purchase price was $549,000.

Their Situation

Paul and Tarah were previously living with family and had no prior rental history. They were non-VA buyers, but still needed a loan program that offered no down payment. Next, their credit score was 608 FICO, which is considered fair. Furthermore, their debt-to-income ration was 45.54%, which is relatively high. For Paul and Tarah having no money for a down payment, a fair credit score, and a high DTI, it would not be surprising for them to think that Hawaii homeownership was out of their reach, but with the Hale ‘Ohana Loan Program it isn’t!

Their Solution

Through the Hale ‘Ohana Loan Program, Paul and Tarah received a 30-year Fixed Rate 1st Mortgage on that home they wanted in Waianae. Since the FHA usually requires 3.5% down, we financed the down payment into a 15-year Fixed Rate Community/Non-Profit Funded 2nd Mortgage. Paul and Tarah moved out of living with their ohana and into their own single family home. Hawaii home buying dream realized!

We can do the same for you. Call us at 808-792-5251 or contact us here.

By Erin Delgado 11th January 2023 0 Comments

PCS to Hawaii: Schofield Barracks | Restaurants & Ono Grindz

Ono is a Hawaiian word meaning “good to eat.” It’s impossible to name all the amazing places to grab some ono grindz (good food or meal out) in the areas surrounding Schofield Barracks. So we’ll just name a few that have proven to broke da mout! As you can probably assume, that’s the Hawaiian scale for delicious!

Mililani Area Restaurants

Fried Chicken

Raising Cane’s

Town Center of Mililani

95-1249 Meheula Pkwy

Mililani, HI 96789

“This place literally made my night from how sweet and energetic the staff was. I got out of the gym after a pretty mid day and found out that the three chicken fingers have approximately 47g of protein, so I was super excited to go out to eat. When I pull up to order, the guy on the mic starts with “Yo yo yo – what can I get for ya?” and that made me laugh and smile for the first time today. When I got home, I found that the employees gave me one extra chicken finger. This made my day. I definitely will be back at this location soon.”
Raising Cane’s Mililani Google Review

Bar/Pub Food

The Shack

95-221Kipapa Dr

Mililani, HI 96789

(808) 627-1561

“Bustling sports bar atmosphere with quick and friendly service and decent not-too-expensive food.”
The Shack Mililani Google Review

Food Truck/Seafood

Flyin’ Ahi

200 Akamainui St

Mililani, HI 96789

(808) 291-4633

“The food is delicious and is out so fast! Our group of 9 was served within 15-20 minutes. Everyone but one got the kalbi fries and the other plate was the ahi plate. All amazing!”
Flyin’ Ahi Google Review

Vietnamese

Ba-Le

95-221 Kipapa Dr

Mililani, HI 96789

(808) 623-4447

“Ba Le Bakery is one of our favorite restaurants. We love their handmade sandwiches – tuna sandwich, teriyaki chicken sandwich – summer rolls with a vegetable wrap, shrimp fried rice. Try them when you have a chance.”
Ba Le Google Review

Breakfast/Sandwiches/Coffee

Rise and Shine Cafe Hawaii

95-1057 Ainamakua Dr

Mililani, HI 96789

(808) 260-9312

“I need an option with 10 stars. The banana macadamia nut pancakes with house made coconut syrup are the best and biggest pancakes I’ve ever had, and I’ve had a lot. The French toast was like 2.5″ thick and absolutely delicious. This place is top notch and the service was excellent. Thank you for being amazing!”
Rise and Shine Cafe Google Review

Wahiawa Area Restaurants

Chicken/BBQ

Maui Mike’s Fire Roasted Chicken

96 S Kamehameha Hwy

Wahiawa, HI 96786

(808) 622-5900

“Absolutely love the cute little restaurant. The fire roasted chicken is yummy. You have lots of sauces to choose from. They are super accommodating. I had just moved here and they gave me extra plates and utensils. The staff was super nice. The portions are pretty big. Definitely will be back to try one of their sandwiches.”
Maui Mike’s Wahiawa Google Review

Deli/Sandwiches

Ohana Sub & Deli

55 S Kamehameha Hwy

Wahiawā, HI 96786

(808) 799-5799

“By far the best sandwich on the island. Huge size to.”
Ohana Sub & Deli Google Review

Italian

J P Spaghetti

935 California Ave

Wahiawa, HI 96786

(808) 621-7238

“Whenever I get the craving for some really good lasagna, chicken saltimbocca, or eggplant parmigiano, I have to come here. Always get extra bread! You won’t regret it.”
JP Spaghetti Google Review

Coffee/Smoothies/Waffles

Surfers Coffee

63 S Kamehameha Hwy

Wahiawa, HI 96786

(808) 439-3644

“Delicious coffee! The tasty açaí bowls were a nice bonus. From the outside, I expected a small coffee shop, but inside, it’s a spacious and inviting place with plenty of seating and a cozy atmosphere. The team at Surfers is very friendly, too.”
Surfers Coffee Google Review

Waialua & Haleiwa Area Restaurants

Coffee/Tea/Light Bites

Poke Bowls

Poke for the People

66-935 Kaukoanahua Rd

Waialua, HI. 96791

“Says it in the name, ‘for the people.’ Everything is so fresh and the variety keeps me coming back. They’re so friendly and they know what they’re doing. For example when the line starts to back up someone else will randomly appear from the back and help people to make sure everyone’s happy. Love this place.”
Poke for the People Google Review

Quick Bites

North Shore Crepes Cafe

66-470 Kamehameha Hwy

Haleiwa, HI 96712

(808) 238-7206

“This place was fantastic! We had the Banana Mac! It was mactastic!”
North Shore Crepes Google Review

North Shore Tacos

54-296 Kamehameha Hwy

Hauula, HI 96717

(808) 293-4440

“Great place to eat on the way to the North Shore beaches or Polynesian Cultural Center. Chips and salsa were great – especially the pineapple salsa – as well as the fish tacos!”
North Shore Tacos Google Review

Burgers

Seven Brothers – Shark’s Cove

(more locations near North Shore as well)

59-712 Kamehameha Hwy

Haleiwa, HI 96712

“Great burger! The patty was seasoned nicely and was super juicy. Nice setting directly across from the Pupukea Beach Park. Staff were very friendly and service was quick. Great experience all around and we will definitely visit again.”
Seven Brothers Shark’s Cove Google Review

Vegetarian

Beet Box Cafe

66-437 Kamehameha Hwy

Haleiwa, HI 96712

(808) 637-3000

“Couldn’t recommend this place more! Tons of options when it comes to vegetarian food. The employees were very friendly and welcoming as well!”
Beet Box North Shore Google Review

Breakfast Burritos/Pulled Pork/Milkshakes

Kono’s North Shore

66-250 Kamehameha Hwy Ste G110

Haleiwa, HI 96712

“Staff was extremely friendly and helpful. Stopped in for breakfast and their burritos are massive!! You definitely get your moneys worth. The pulled pork had a ton of flavor and their homemade hot sauces are delicious. HIGHLY recommend this place.”
Kono’s North Shore Google Review

Smoothies/Bowls/Sandwiches

Waialua Bakery & Juice Bar

66-200 Kamehameha Hwy

Haleiwa, HI 96712

(808) 341-2838

“Loved the sandwiches, smoothies and treats. I don’t think you can go wrong with anything you order!”
Waialua Bakery & Juice Bar Google Review

Haleiwa Bowls

66-030 Kamehameha Hwy

Haleiwa, HI 96712

“Great bowls. You can find a lot of options from bowls to smoothies. They also have different sizes, the large one is great to share. All the flavors are amazing, fresh and natural.”
Haleiwa Bowls Google Review

Eat up!

Take a look at other nearby restaurants and ono grindz near Oahu’s main military bases here. Why? Because you’re not just PCSing to Schofield Barracks, you’re PCSing to all of Hawaii!

By Erin Delgado 7th April 2022 0 Comments

When a Budget Letter May Be Required with VA Loan Pre-Approval

How do we determine a borrower’s VA loan pre-approval amount? By looking at finances of course! Before we get into when a Budget Letter may be required for VA loan pre-approval, let’s go over how the process starts.

The VA Loan Process begins with getting prequalified. Prequalification involves a 15 minute phone call or in-person meeting. During the meeting, a VA Loan Specialist will give the potential buyer an estimated affordable home price. This amount is based on verbal information from the buyer about income and debts.

Next is the more official and necessary step of pre-approval. A VA Loan Specialist will request the following documents for pre-approval:

Most recent LES or Pay Stubs (one month)
Last 2 years W2 statements
Last 2 years Federal Tax Returns
Last 2 months Bank Statements
Certificate of Eligibility

From there, an accurate pre-approval amount will be determined. Once that amount is known, the VA buyer can home shop with confidence.

The Budget Letter

Now, there are some circumstances that may require a Budget Letter to be completed by the borrower prior to getting officially pre-approved. These instances are:

High Debt-to-Income (DTI) Ratio and Payment Shock
- Payment Shock occurs when, rather suddenly, someone is obligated to pay more in monthly debt than they can afford from their income.
High DTI and Low Reserves
- Reserves are savings balances that will be there after you close on your home.
Unstable Work History

The underwriter will request a Budget Letter from the borrower if any of these factors are seen. An underwriter evaluates credit history, assets, the size of the loan requested and how well they anticipate that the borrower can pay back the loan.

An Example of a Budget Letter:

A Budget Letter is helpful because it shows the lender and the borrower how comfortable making their monthly mortgage payment will be.

Compensating Factors

Indeed, there are some strong compensating factors that prevent the underwriter from asking for a Budget Letter. Compensating factors are positive aspects of a borrower’s loan application that help offset the negative such as bad credit or low income.

They are:

Low use of consumer credit (unsecured loans)
Ability to save consistently
Strong reserves
A spouse with significant earning potential that isn’t on the loan

It’s important to know that a Budget Letter is requested to ensure a wise financial decision for a buyer. The VA home loan program seeks to protect servicemembers and Veterans from entering into a situation that can cause financial distress. Therefore, Hawaii VA Loans works with our borrowers to ensure that VA home buying is a successful endeavor.

By Erin Delgado 16th June 2021 0 Comments

VA Loan Volume in Hawaii: Q2 of Fiscal Year 2021

How big is the VA loan volume in Hawaii? Find out what Hawaii’s VA loan numbers are for the second quarter (Q2) of Fiscal Year 2021. The data below includes VA purchase loans, VA interest rate reduction refinance loans (IRRRL), and VA cash-out refinance loans.

Before we continue, what does “fiscal year” mean? The federal government uses the fiscal year for their budgets. The budget’s fiscal year always starts on October 1 and ends on September 30 of the following year.

Thus, Q2 of FY2021 is considered January 1, 2021 through March 31, 2021.

Go here for a state-by-state breakdown of Q2:

Source: Department of Veterans Affairs

Now, let’s see how the beautiful state of Hawaii is doing!

VA Purchase Loan Volume

VA Purchase Loans offer U.S. veterans and military service members the opportunity to become Hawaii homeowners using their VA home loan benefits.

Since home prices are high in Hawaii, it’s important to know that the VA loan limit for Oahu and all of the Hawaiian islands for 2021 is NO LIMIT for VA buyers with full entitlement. That means if you get pre-approved for a two million dollar home, then you can buy one with no money down using your VA loan.

The VA Purchase Loan Volume in Hawaii for the Q2 of FY2021 is:

Total Purchase Loans: 743 (compared to 682 in Q2 of FY2020)
Loan Amount Avg – Purchase: $684,589 (compared to $606,634 in Q2 of FY2020)
Total Loan Amount – Purchase: $508,649,757 (compared to $413,724,367 in Q2 of FY2020)

VA Interest Rate Reduction Refinance Loan (VA IRRRL) Volume

VA Interest Rate Reduction Refinance Loan (IRRRL – you can pronounce it “Earl”) allows VA mortgage holders to seize upon current low interest rates and refinance their existing home loans.

The VA IRRRL Volume in Hawaii for the Q2 of FY2021 is:

Total IRRRL Loans: 2,937 (compared to 1,215 in Q2 of FY2020)
Loan Amount Avg – IRRRL: $558,395 (compared to $565,219 in Q2 of FY2020)
Total Loan Amount – $1,640,005,459 (compared to $686,741,129 in Q2 of FY2020)

VA Cash-Out Refinance Loan Volume

A VA Cash-Out Refinance (also called VA Equity Cash-Out) gives borrowers an opportunity to take cash out of their home equity or refinance a non-VA loan into a VA-backed loan. Taking cash out of home equity may help to pay off debt, pay for school, make home improvements, or take care of other needs.

The VA Cash-Out Refinance Volume in Hawaii for Q1 of FY2021 is:

Total Cash-Out Loans: 347 (compared to 313 in Q2 of FY2020)
Loan Amount Avg: $553,973 (compared to $535,924 in Q2 of FY2020)
Total Loan Amount – Cash-Out: $192,228,631 (compared to $167,744,223 in Q2 of FY2020)

The Total Volume for All Loans

Total Loans (VA Purchase + VA IRRRL + VA Cash-Out Refinance): 4,027 (compared to 2,210 in Q2 of FY2020)
Loan Amount Avg: $581,297 (compared to $573,851 in Q2 of FY2020)
Total Loan Amount Sum (All Loans): $2,340,883,847 (compared to $$1,268,209,709 in Q2 of FY2020)

The big takeaway from this data is that ALL loan volumes continued to increase from the same time last year with VA IRRRLS showing the biggest increase in volume.

Get Pre-Approved for a VA Loan

It’s easy to get pre-approved for a VA home loan when you have the Hawaii VA Loans team supporting your home buying goals! Contact us at 808-664-4950 or fill out our secure online application for purchasing or refinancing and we’ll get in touch directly.

By Erin Delgado 28th December 2020 0 Comments

2021 BAH Rates & Purchase Price Conversion for Hawaii VA Home Buying

The 2021 Basic Allowance for Housing (BAH) rates take effect on January 1, 2021. For active duty military members moving to Hawaii in 2021, these are their monthly rates for housing. However, for service members already stationed in Hawaii, their BAH rate will be the higher of their current rate or the new 2021 BAH rate.

Update: The 2022 BAH rates take effect on January 1, 2022. GO HERE to see the 2022 rates and their condo and single family home purchase price conversions for Hawaii.

2021 BAH Rates for Honolulu County, Hawaii

Source: Defense Travel Management Office

Grade	With Dependents	No Dependents
E01	$2,823	$2,118
E02	$2,823	$2,118
E03	$2,823	$2,118
E04	$2,823	$2,118
E05	$2,991	$2,412
E06	$3,012	$2,667
E07	$3,189	$2,829
E08	$3,390	$3,000
E09	$3,588	$3,006
W01	$3,024	$2,769
W02	$3,273	$2,997
W03	$3,519	$3,009
W04	$3,618	$3,048
W05	$3,738	$3,234
O01E	$3,231	$2,991
O02E	$3,480	$3,003
O03E	$3,633	$3,015
O01	$3,000	$2,652
O02	$3,009	$2,937
O03	$3,507	$3,012
O04	$3,777	$3,201
O05	$3,966	$3,315
O06	$4,002	$3,498
O07	$4,032	$3,561

The 2021 BAH rates are based on the current local median market rent and average household utilities (including electricity, heat, and water/sewer) in each military housing area (MHA); and incorporate a five percent out-of-pocket amount.

2021 BAH to Purchase Price Conversion Matrices for Honolulu County

The BAH matrices below detail the estimated Condo Purchase Price and Single Family Dwelling (SFD) Purchase Price service members can afford using their monthly BAH rate solely as their mortgage payment at 3.00% interest rate.

Keep in mind, interest rates vary depending on several factors. and your personal VA Loan Specialist determines the current interest rate at the time of your purchase.

In addition, the estimated purchase prices in the BAH matrices do not reflect extra income (from employed spouses for example) in the monthly mortgage payment. Therefore, one’s pre-approval amount will vary depending on their debt-to-income ratio and additional income.

Get pre-approved to find out exactly what purchase price you can afford. Most importantly, there is no down payment requirement for VA buyers with full entitlement.

2021 BAH to Purchase Price Conversion Matrix With Dependents for Honolulu County

2021 BAH to Purchase Price Conversion Matrix With No Dependents for Honolulu County

*Download High Quality versions of the 2021 BAH Matrices for free HERE.

Next, contact Hawaii VA Loans at 808-792-4251 to talk with a VA Loan Specialist or fill out this secure online loan application. Once submitted, we’ll reach out to you!

Category Archives: Uncategorized

8 Great Long-Term Benefits of Hawaii Home Buying

Personal Benefits of Living in Hawaii

Financial Advantages of Hawaii Home Buying

The Hale ‘Ohana Loan Program | Paul & Tarah’s Story

Their Dream

Their Situation

Their Solution

PCS to Hawaii: Schofield Barracks | Restaurants & Ono Grindz

Mililani Area Restaurants

Fried Chicken

Bar/Pub Food

Food Truck/Seafood

Vietnamese

Breakfast/Sandwiches/Coffee

Wahiawa Area Restaurants

Chicken/BBQ

Deli/Sandwiches

Italian

Coffee/Smoothies/Waffles

Waialua & Haleiwa Area Restaurants

Coffee/Tea/Light Bites

Poke Bowls

Quick Bites

Burgers

Vegetarian

Breakfast Burritos/Pulled Pork/Milkshakes

Smoothies/Bowls/Sandwiches

Eat up!

When a Budget Letter May Be Required with VA Loan Pre-Approval

The Budget Letter

An Example of a Budget Letter:

Compensating Factors

VA Loan Volume in Hawaii: Q2 of Fiscal Year 2021

VA Purchase Loan Volume

VA Interest Rate Reduction Refinance Loan (VA IRRRL) Volume

VA Cash-Out Refinance Loan Volume

The Total Volume for All Loans

Get Pre-Approved for a VA Loan

2021 BAH Rates & Purchase Price Conversion for Hawaii VA Home Buying

Update: The 2022 BAH rates take effect on January 1, 2022. GO HERE to see the 2022 rates and their condo and single family home purchase price conversions for Hawaii.

2021 BAH Rates for Honolulu County, Hawaii

2021 BAH to Purchase Price Conversion Matrices for Honolulu County

2021 BAH to Purchase Price Conversion Matrix With Dependents for Honolulu County

2021 BAH to Purchase Price Conversion Matrix With No Dependents for Honolulu County

Categories

Recent Posts