Randy L. Prothero - Hawaii REALTOR® (808) 384-5645

One of the best benefits given to active to military is housing. When I speak of housing I am not talking about base housing which has been greatly improved in Hawaii the last few years. I am speaking about VA benefits to purchase a home.

The VA loan program is an extremely attractive program for active duty soldiers and veterans. The VA loan program offers 100% financing. In Honolulu County (the island of Oahu) the limit for 100% financing in 2012 is: $695,750. If the vet wants to buy a home for more than that amount most lenders require 25% down for the amount above the limit.

Besides offering the 100% loan program, active duty soldiers also receive BAH (Basic Housing Allowance). On Hawaii an E-1 with a dependent receives $1860/ month, while on the high end an O-7 and above receives $3423/month. That is above and beyond their pay and cost of living allowance. What makes this significant is that not only does an active duty soldier have a wonderful mortgage program, but the government gives them a housing allowance to make the payments.

There are a few differences between using a VA mortgage compared to using a conventional loan.

1) The VA provides a guarantee to the lenders.

2) The VA has a streamline program for refinancing loans.

3) VA loans are assumable.

4) The appraisal process is handled by the VA and an NOV (Notice of Value) is issued.

5) The VA restricts some of the closing costs paid by the buyer. These are known as non-allowables.

In Hawaii we have several military bases and a large number of veterans. In my real estate business, Active duty military and veterans account for over half of my business. With the number of VA transactions I do, I have been able to put together support services with local venders and lenders for VA buyers. A great example is that a few of the local lenders pay the VA non-allowables, so the buyers do not have to negotiate that from the sellers. Other venders offer discounts to military, such as home inspections.

If you are considering buying a home in Hawaii and would like to know how using your VA benefit will impact you, please contact me anytime. I would be honored to assist you.

Good luck and Happy House Hunting!

Beginning January 1st, 2012 the VA Mortgage limits for 100% financing for Hawaii will be going down a little.

For Oahu County is will be: $695,750

For all other Hawaii Counties it will be: $625,500

VA Jumbo loans will be handled the same way. Most of the Hawaii lenders require 25% down payment for anything over the limit. For example a purchase of $795,750 on Oahu would require $25,000 down.

If you are looking to purchase a home in Hawaii and you are considering using your VA benefit, please contact me and I can walk you through the process.

Good luck and happy house hunting!

Jeff Foxworthy has, “you might be a redneck.” I have, “you might consider another line of work.”

If you are a real estate agent or a loan officer and:

1) You don’t put your client’s needs ahead of yours; you might consider another line of work.

2) You don’t return phone calls on a timely basis; you might consider another line of work.

3) You are not getting properly trained; you might consider another line of work.

4) You don’t like people and you can’t treat everyone exactly the same; you might consider another line of work.

5) If you are not willing to work as many hours as it takes to get the job done; you might consider another line of work.

6) If you turn off your phone on the weekends; you might consider another line of work.

7) If you can’t follow a timeline; you might consider another line of work.

8) If you think a closing date is only an estimate; you might consider another line of work.

9) If you think a deposit is the opposite of posite; you might consider another line of work.

10) You believe a deed is something a boy scout does at least once a day; you might consider another line of work.

11) You think a closing is when they turn the lights out at your office and lock the doors; you might consider another line of work.

12) You order a survey and they e-mail a list of questions to your friends; you might consider another line of work.

13) You think a carport is a truck that carries several cars; you might consider another line of work.

14) You believe a counter offer is used to buy a counter; you might consider another line of work.

15) You think a short sale is a fast one; you might consider another line of work.

16) You think an addendum tells you who the speakers are at a meeting; you might consider another line of work.

17) You think a covenant is a religious cult; you might consider another line of work.

18) Last but not least, you think escrow is something you get in a French restaurant; you might consider another line of work.

The behavior of many loan officers and real estate agents has gotten pretty bad. I can’t tell you how many phone and e-mail messages a week I send, that go unanswered. My time and my client’s time seem to have little value to many. You know they are not returning their client’s messages either in these cases.

The number of poorly written contracts and untrained agents is mind blowing. I have crossed swords with many loan officers who do not care about the unnecessary stress they put their clients through.