Welcome to our Guide on How to Secure Hawaii VA Loans with low-interest rates! In this comprehensive resource, we will explore the essential steps and strategies for obtaining VA loans in the beautiful islands of Hawaii while taking advantage of competitive interest rates.

Hawaii VA Loans: An Effective Way to Secure a Mortgage in a Rising Interest Rate Market

Oahu mortgage refinancing for homes like this can be estimated using our VA refinance calculator. Veterans have the option to use the VA streamline or cash-out programs to have their Hawaii home refinanced.If you’re a veteran or active-duty military member looking to buy a home in Hawaii, now is the time to act. The current interest rate market is shifting, and it’s becoming more challenging to qualify for a mortgage as interest rates rise. For this reason, understanding the ins and outs of getting a mortgage through the VA Loan Program is more important than ever if you qualify. This blog post will discuss how to get a VA loan in Hawaii and what to expect in today’s market.

100% Financing is Achievable

As a homebuyer in Hawaii, you must understand the facts about these government-backed mortgages. For example, did you know that a VA loan is not necessarily monetary? Instead, the federal government guarantees a portion of your loan (usually around 25%), making it easier for lenders to provide financing for up to 100% of the home’s value. In addition, VA loans come with some of the lowest interest rates available, which means that you can save a significant amount of money over the life of your loan. VA loans come with fees and closing costs, which will incorporate into the loan and finance.

Your Top VA Loan Questions, Answered.

Despite their many benefits, VA loans are one of the most misunderstood mortgage products on the market. It is because so many different types of VA loans are available. For example, there are VA purchase loans, which can finance the purchase of a home. There are also VA refinance loans, which can lower your monthly payments or get cash out of your home equity. And finally, there are VA rehab loans, which can finance the repair or renovation of a home.

Top 5 Myths About Hawaii VA loans 

We’ve compiled a list of the top 5 myths about Hawaii VA loans so that you can be well-equipped with the knowledge you need to make the most informed decision when you’re ready to purchase a home in Hawaii.

Myth #01: You need perfect credit to qualify

While it’s true that your credit score plays an important role in the loan approval process, you don’t need perfect credit to qualify for a VA loan. Even with bad credit, you may still be eligible for a VA loan if you have a strong enough income and a good history of making on-time payments. Your lender will then make the final decision on whether or not to approve your loan. If you’re considering borrowing from a conventional lender, you’ll need a reasonably good credit score, but a VA lender may be more lenient. Some lenders approve VA loans for veterans with credit scores as low as 550.

Myth #02: You need a huge down payment

Conventional loans typically need a 5-20% down payment, but VA loans may not. With an unencumbered VA entitlement, you can get a VA loan with no money down. If your entitlement is insufficient, a small down payment might be necessary. A qualified VA mortgage broker can help calculate your loan limit and down payment requirements. A VA funding fee is required for most VA mortgages, with exceptions for disability ratings above 10%. The fee sustains the program and includes in the loan amount.

Myth #03: VA loans are only for first-time homebuyers

While VA loans are an excellent option for first-time homebuyers, they’re also perfect for anyone looking to buy a new home at any stage. If you’re a veteran or active-duty military member, you may be eligible for a VA loan regardless of whether you’ve bought a home. Even if you’ve already used your VA loan entitlement, you may still be eligible to use it again if you meet specific requirements, including selling your previous home or paying off your loan in full.

Myth #04: You can only use a VA loan to buy a single-family home

VA loans can finance the purchase of various properties, including single-family homes, townhouses, and even condominiums. However, there are a few restrictions. For example, you may not be able to use a VA loan to purchase an investment property or a vacation home. But you should be eligible as long as the property you’re looking to purchase will be your primary residence. Consulting with a mortgage broker is the best way to determine whether a parcel is eligible for VA financing.

Myth #05: The interest rate on a VA loan is always higher than a conventional mortgage

We touched on this briefly, but it’s worth repeating: the interest rate on a VA loan is not always higher than a conventional mortgage. VA loans often come with some of the lowest interest rates available, especially when you compare them to other types of loans like FHA or subprime mortgages. It is because VA loans back by the government, which gives lenders the confidence to offer lower interest rates. Low interest rates are making VA loans desirable for home buyers in the current climate.

Our Final Thoughts

Honolulu VA Loan office where Eli works as an Oahu Loan officer for veterans

If you’re considering using a VA loan to purchase a home in Hawaii, now is the time to start working with a Hawaii VA mortgage broker who can help you navigate the process. With interest rates rising, getting pre-approved for a loan and locking in a low rate is more important than ever. A veteran loan officer can help you compare rates from different lenders and find the best loan for your needs.

The first step in getting a VA loan is to obtain your Certificate of Eligibility (COE). The COE verifies to the lender that you are eligible for a VA-backed loan. You can receive your COE through an online service offered by the Department of Veterans Affairs, through your lender, or by mail through the Veterans Benefits Administration. A mortgage broker, however, will be able to help you obtain your COE with little to no hassle and will also be able to negotiate the best interest rate on your behalf.

Get in touch with me to learn more about VA loans and how I can help you finance the purchase of your new home in Hawaii.

Elias Halvorson has over a decade of experience in the financial industry and is one of the top brokers in this specialist field.