Real Estate And Mortgage Loans For Hawaii’s People
There has been much discussion in the press about the real estate boom in Hawaii, which, to a great extent, is generated by high-end buyers. Developers of ultra-luxury highrise condos target this market, and these properties are receiving a strong response from foreign and Mainland U. S. buyers. Who is buying and what they are buying make for juicy stories, and those of use who are not part of this demographic lament the “Old Hawaii” and “the way things used to be.”
Extended low interest rates from 2011 to present have also fueled the housing boom, and property values across the state have increased steadily and in some cases surged over the last four years. So what are the best options today for the average local buyer?
Well, people with incomes below six figures are still buying in this market, thanks to innovative mortgage products and creative financing solutions. With a Realtor and a lender tuned in to your needs and financial capabilities, you will get encouragement and advice to help you move forward toward your goal of owning a home.
There are still many homes for sale well below the current median sales price, which is now in the low $700,000s. The homes that you can afford may not be in exactly the area you prefer, but you need to start someplace. What’s important is to get into the market while interest rates are still low…you can always move up later.
In addition to high interest rates, other obstacles faced by buyers with limited resources are high sales prices, lack of funds for a down payment, and sufficient income to qualify for a loan. It takes determination and discipline for the average buyer to find a suitable property, qualify for a loan, and close on the purchase.
Guild Mortgage Company is able to offer a number of solutions that keep the dream alive for local buyers and military who need our assistance – for example, low and no-down-payment loans. These include:
1) USDA 100% Loan to Value financing on all Neighbor Islands and certain rural areas of Oahu.
2) Veterans Administration loans. 100% Loan to Value financing is available up to the current no-down limit of $721,050 on Oahu.
3) Federal Housing Administration (FHA) loans. 96.5% Loan to Value loans are available and limits vary by County. All down payment can be gift money and non-occupying co-mortgagors are allowed. 4) 97% Conventional Financing with lender-paid mortgage insurance which reduces the monthly payment.
Other ways Guild can help qualify borrowers include:
• Liberal use of gift letters and discussions with close family members. There is currently no gift tax consequence until gifts to one person exceed over $5 million dollars in a lifetime. This is subject to change.
• Restructuring personal debt to assist in qualifying for the maximum financing possible for each circumstance.
• Lender credit for certain closing costs to assist the borrower who is tight on cash to close.
Again, these are some of the strategies and solutions Guild Mortgage can offer to give buyers a path to home-ownership in the current real estate marketplace. You can own a home in Hawaii if you have the right team on your side – a good Realtor, Loan Officer, and financial institution.
If buying a home in 2016 is your goal, please make an appointment for a no-obligation consultation with one of our Loan Officers by calling Guild Mortgage, Honolulu Branch at 744-6420, Waikele Branch at 369-7098, or our Main Office in Kailua at 263-8740.