VA Loans

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.

Other benefits of the VA loan include:

• Negotiable interest rate.
• Closing costs comparable – and sometimes lower - than other financing types.
• No private mortgage insurance requirement.
• Right to prepay loan without penalties
• Mortgage can be taken over (or “assumed”) by the buyer when a home is sold.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.
• Can get more than 4% seller credit to help pay closing costs, negotiate down to a lower rate, and even pay off consumer debt, such as credit cards, or autos!

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/ caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan.

VA Loan Myths

The VA loan can be used only one time.  Not true!  The VA loan can be used as many times as necessary, as long as the previous VA loan has been paid in full.  In some cases, the Vet may have enough entitlement to have two VA loans at the same time.

The VA loan is hard to qualify for.  The VA loan is guaranteed by the Federal Government.  So lenders love them because there is less risk.  The VA loan is actually easier to qualify for than conventional loans!

VA loans have too much paperwork.  There are a few additional disclosures, but VA loan has the many of the same requirements as a conventional loan.

Hawaii VA Loan Limits

1 unit:  $783,750

2 unit:  $1,016,150

3 unit:  $1,228,300

4 unit:  $1,526,450

For more information on VA Loan limits in Hawaii and other locations, please click the following link:  http://www.homeloans.va.gov/docs/2009_county_loan_limits.pdf.

VA Loan Contact Information

Ivonne Perez, Loan Guaranty Officer:   808-433-0481 , ivonne.perez@va.gov

Susan Kanehailua, Loan Specialist:   808-433-0480 , susan.kanehailua@va.gov

Sandra Luke, Loan Specialist:   808-433-0486 , sandra.luke@va.gov

Raymond Chang:  Staff Appraiser:   808-433-0485 , raymond.chang@va.gov.

Or visit the VA Loan Guarantee Website at https://www.homeloans.va.gov/    

Link to Military Paycharts:  http://www.armytimes.com/money/pay_charts/

 Thank you for serving our country!