VA Loans in Hawaii are still the most common way for service members to purchase real estate in Hawaii.

The reason is simple:  Service members can get 100% financing at a competitive interest rate with ZERO money down.

Why is it beneficial for a service member to use their VA Loan Eligibility on a piece of real estate in Hawaii?

That answer is also simple.  The use of a VA Loan in Hawaii with ZERO money down is the main attraction.  If the Service member was to opt for a Conventional Loan, the Service member would be looking at a 20% down payment.   Since single family home prices on Oahu are around $500,000, that means the down payment would be around $100,000.  Not many service members have that kind of money laying around.

If the service member was to opt for an FHA loan, that is still a 3.5% down payment or $17,500.  Once again, not many of my service member brothers and sisters have that kind of money to spend on a down payment.

So if the Service member uses their VA loan elibility in Hawaii and subesequently PCS’s to the mainland and wants to buy another house, since home prices are much lower in MANY parts of the mainland, the down payment of 20% or 3.5% is much less.  For example, with a 20% down payment for a brand new home in the Ft Hood, Texas area at around 150k, the down payment amount would be $30,000 rather than the $100,000 in Hawaii.

If the Service member opted for an FHA loan in Texas, the down payment of 3.5% on a $150,000 house would be $5,250.

For more questions about your VA Loan Eligibility in Hawaii, contact First Sergeant, Retired and real estate broker in Hawaii, David Kucic at (808) 218-9338 or email me at david@davidkucic.com.  You are in good hands with one of your fellow veterans taking care of you.