The New VA Loan Limits in Hawaii for 2012 have been published.  These amounts are the Maximum Loan Amounts so if you are also financing the VA Funding Fee, your actual loan amount will be less than these published figures.

1.  Honolulu County $695,750.00
2.  Hawaii County $625,500
3.  Kalawao County $625,500
4.  Maui County $625,500
5.  Kauai County $625,500

For example:  If you want to buy a home in Honolulu County for $650,000.00 and you are also going to finance your VA Funding Fee then your total loan amount would actually be $663,975.00 which includes a 2.15% VA funding fee for an active duty, first time user. (VA Funding Fee amounts vary by your nature and time of military service).

In another example, if you wanted to purchase a home inHonlulu County for $695,750.00, once you add on the VA Funding Fee, you would exceed the authorized maximum allowable loan limit by just under $15,000 so you would need to pay that $15,000 in cash at closing.

For more information about Oahu Real Estate, Hawaii Homes For Sale and VA Loans in Hawaii, contact David Kucic at Hawaii Military Realty.

If Congress confirms the new bill when they return from recess in September 2011, the VA Funding Fee reduction will make Hawaii homes more affordable for Active Duty Military, Veterans and Retirees.  If the bill does get confirmed, it will only apply to VA Loans that close after October 1, 2011.

This is great news for military families relocating to Hawaii who want to purchase a home on Oahu.  While the reduction’s don’t look like much on paper, they actually do provide a savings of up to several thousand dollars due to the high price of real estate on Oahu.

Under the current VA Loan Funding Fee structure, the rates are as follows:

• Active Duty is 2.15% but would go down to 1.4% under the new plan
• National Guard and Reservists are 2.4% but would go down to 1.65% under the new plan
• If using a down payment of 5% or more, the rate will also go down
• If using the VA Loan for a subsequent time, the rate will go from 3.3% to 2.8% for year 2011-2012, 2.15% for year 2012-2013 and 1.25% for loans closing Oct 2013 and later.

For more information on VA Loans in Hawaii and Purchasing Real Estate in Hawaii, contact Hawaii Military Realty, Inc. and ask for David Kucic at (808) 218-9338 or email david@davidkucic.com

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This is something that you should know about a VA Loan in Hawaii.

Assuming you are  eligible for a VA Loan in Hawaii and have enough active duty service to qualify for the lowest “VA Funding Fee”, you will pay an additional 2.15% of the loan amount (3.3% if you are using the VA Loan for a second or third time) when you purchase a home in Hawaii.  Conventional loans have “Mortgage Insurance” when the down payment is less than 20%.  VA Loans in Hawaii have a “VA Funding Fee“.

The difference between the Hawaii VA Loan and the Conventional Loan in Hawaii is that the Mortgage Insurance is an additional monthly charge that you pay on top of your principal, interest, taxes and insurance.

With the VA Funding Fee, the 2.15% gets “rolled into the loan”.  For example, if you buy a piece of real estate on Oahu for $400,000, your actual total loan amount will be 400,000 + 2.15% = $408,600.

The purpose of the VA Funding Fee on Hawaii VA Loans is the same as Mortgage Insurance on Hawaii Conventional Loans:  They insure the lender in case the Buyer defaults on the loan.

For more information on purchasing real estate in Hawaii or to view properties on the Hawaii MLS, visit my homepage and click on the Quick Search Tab.

Aloha and Happy House Hunting!