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Feb 14, 2021 Hawaii Veteran Buyers Using VA Loan: Buyer Beware

This market on Oahu is crazy as we are all aware.  It’s really a great time to be a Seller for many reasons during these times.

My concern is with our Buyers, specifically our VA Buyers who are doing 100% financing as most VA Buyers do and then needing to leave on PCS orders in 3 years.

We have no idea how long this Sellers market will last and when it will swing back in favor of Buyers.  Once the market shifts back to a Buyers market, there is more competition amongst Sellers to attract Buyers and one of the ways they do that is by offering things such as lower price and paying for some or all of the Buyers closing costs.

If our VA Buyers are unable to sell their homes because they would have to come out of pocket with cash in order to sell, then their next logical choice is to turn it into a rental property.  That is great as long as the Owner is able to “eat” the shortage each month.

For example, let’s say Sergeant Smith buys a condo in Ewa Beach for $425,000 with 100% financing.  The maintenance and HOA fee is approximately $550 per month.  The mortgage payment would be about $1,625 per month.  That’s $2,175 total.  Those units rent for about $2,000 per month.   The property manager gets $200.  The GET that the owner pays is $120 per month.  This means that Sergeant Smith would be upside down by $495 per month and that doesn’t include any repairs that might need to be made.  

Please think about your future when purchasing a home rather than just jumping in without the knowledge of what could potentially happen in the future.

1SG Kucic Reports on Mililani Hawaii: Two Separate Locations

The city of Mililani, Hawaii consists of 2 separate locations that are referred to as “Mililani Town” and “Mililani Mauka“.

Mililani Town mostly consists of older homes that were built starting in the early to mid 1960’s.  Mililani Town is located west of the H-2 highway.  In Mililani Town, you can find single family homes of a variety of sizes and some with with generous lot sizes, townhouses and condominiums. 

Mililani Mauka which is east of the H-2 highway has newer homes that were built starting in the early 1990’s.  The word “Mauka” means “toward the mountain”.  Mililani Mauka is built on the side of the mountain heading up towards the top.  The earliest phases of construction started at the bottom of the mountain and the last phase ended up much higher.

Military personnel that are relocating to Hawaii love Mililani Mauka and Mililani Town because it is very close to Schofield Barracks (Tropic Lightning), Wheeler Army Airfield and Kunia Tunnel (approximately a 10-15 minute drive).  It is also very conveniently located close to Hickam Air Force Base, Pearl Harbor, Tripler Army Medical Center and Camp Smith.  The drive to the latter bases is a little longer at 20-30 minutes.

Home prices in Mililani Town and Mililani Mauka range from the mid 200’s for a condominium to over 1 million dollars for a single family home.  Every single family home in Mililani, Hawaii is eligible for purchase with a Hawaii VA Home Loan and ALMOST every townhouse and condominium in Mililani is eligible for purchase with a Hawaii VA Home Loan.

Mililani, Hawaii is located in Central Oahu.