Kona Kohala Blog

The information below is from Matt Polsky of VABenefitsBlog.com. On Monday, Memorial Day, please take a moment and remember why we celebrate this day. It's a time of high praise for those who gave their all and thoughts of celebration and appreciation for those serving today and every day before as they offer their lives in service to their country and for each of us, please say Thank You, it's the least we can do.

"VA Loans: Benefits to our Hawaii Service Members
With Memorial Day ahead, it is time to remember all the men and women who gave their lives while serving the United States. As we honor the fallen, it is important to remember there are still many service members and veterans with us that deserve the utmost respect as well. One program designed to show veterans admiration is the VA Home Loan Guaranty program. With exclusive access to the VA home loans, military homebuyers can save money while they finance their dream home. The Big Island is undoubtedly a dream location for military homebuyers, and can be an affordable option with help from a Hawaii VA loan.
The VA loan program came about with the spirit of Memorial Day in mind. In 1945, Congress designed the VA loan program as a way to serve those who valiantly served during World War II. Just as Memorial Day expanded from honoring the fallen from the Civil War to all fallen U.S. troops, the VA loan program serves all active-duty members and veterans alike.
Within the program, many financial benefits help troops and veterans finance their home. Most notably, Hawaii VA loans often come with little to no money down and high loan limits. For example, in Hawaii County, qualified buyers can purchase homes up to $625,500 without putting a penny down. However, when Hawaii VA loan borrowers do make down payments, they generally stay below 5 percent.
Long-term savings result from low monthly payments and low interest rates, primarily because of the VA’s guaranty. Up to one-quarter of each loan is backed by the VA, causing VA-certified lenders to whittle down interest rates. Active-duty homebuyers get the added benefit of interest rate caps. In addition, VA loans lack private mortgage insurance (PMI), a hefty cost common in conventional loans which can be anywhere from $100 to $250 a month. Hawaii VA loans are a popular choice for military homebuyers because of these benefits as well as other benefits, like:
-No prepayment penalty
-Lower closing and concession costs, some of which may be covered by the seller
-Refinancing options that lower interest rates
-Assistance to homebuyers in the unlikely event that they are facing default
Just because the program comes with many perks does not mean it is difficult to qualify. Credit and financial requirements are more flexible, enabling military homebuyers to easily qualify. VA-certified lenders do like to see credit scores no lower than 620 and debt-to-income ratios of 41 percent or lower. Better figures usually mean better interest rates.
Eligibility depends on service history and discharge status. No one with a dishonorable discharge is eligible for a Hawaii VA loan. A medical or honorable discharge is permissible. Military personnel who served on active duty or 90 days during war or 181 days during peace may be eligible. Reservists and National Guard members may be eligible if they served for at least six years. It is possible for spouses of fallen service members to be eligible, too.
As Memorial Day comes and goes, we mourn the loss of our country’s heroes and hope that those who are still with us find a place to call home."