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Guide to Hawaii Mortgages
Maybe you are buying your first home in Hawaii, or perhaps you're relocating to Hawaii from another state. Then again, you may be a long-time Hawaii resident who is looking to either refinance your current mortgage or take out a home equity loan for home improvements. Regardless of your situation, it's important that you educate yourself on Hawaii home loans before shopping for a home and/or mortgage. This article explains what you will need to know before seeking a home loan in Hawaii:
The median price of a home in Hawaii is $211,500. Recently, homes in Hawaii have been appreciating at rates well above the national average. As a result, income levels in many parts of Hawaii are too low to purchase a median-priced home with a conventional loan. Although average interest rates in Hawaii are below the national average, Hawaii has one of the lowest levels of home affordability in the nation.
In Hawaii, before a buyer submits an offer on a home, their real estate agent is required to present them with a completed Real Estate Transfer Disclosure Statement. This document, completed by the seller of the property, requires the seller to name all of the property that will be included in the purchase (refrigerator, stove, alarm system, etc.) and rate certain aspects of the conditions of both the included property and of the house itself. This document requires the seller to disclose any potential problems or hazards that may discourage the buyer from putting an offer in on the home.
Hawaii's Civil Code Provision of the Real Estate Act regulates the issuance of variable interest rates for the purchase of real estate. Therefore, borrowers who are issued large mortgage amounts are guaranteed a fixed rate mortgage. Hawaii law also prohibits the charging of interest more than one day prior to the recording of the mortgage even if the borrower received the loan prior to that time.
In July of 2002, Hawaii law enacted a set of anti-predatory lending laws in order to help protect Hawaii homebuyers from predatory lenders. Some of the provisions of this new set of laws include the prohibition of a lender charging points and fees in excess of 6% of the total principal financed amount, the prohibition of a mortgage company issuing a loan to a borrower in an amount that the borrower could not reasonably afford to repay, and the prohibition of the financing of single-premium credit insurance, among others.
If you're buying a home in the state of Hawaii, you qualify for both federal and state FHA, USDA, and VA loans. First-time home buyers qualify for Hawaii FHA loans with below-market interest rates, and, depending on their eligibility, may also qualify for a loan in order to cover down payment and/or closing costs. Teachers and other professionals who work in an educational capacity may qualify for Hawaii's Extra Credit Teacher Home Purchase Program, a down payment assistance loan with forgivable interest.
In addition to FHA loans, the state of Hawaii also offers comparable programs to persons with disabilities or persons who live with and care for persons with disabilities. The state also offers several unconventional loans designed to aid homebuyers with the costs of their monthly mortgage payment. For example, Hawaii's Interest Only PLUS loan provides qualified homebuyers with a 100% financing 35-year loan that only requires payments toward the accrued interest on the mortgage for the first five years of the loan -- borrowers do not have to pay toward the principal amount borrowed until after the first five years. The individual requirements of each of these loans vary depending on the county in which you are buying a house. Specific requirements can be obtained through the Hawaii Housing Finance Agency.
Last Updated: Wednesday, September 17, 2008
Hawaii Real Estate Market View
updated Wednesday, September 17, 2008
| Housing & Social Facts |
Hawaii |
United States |
| Total housing units |
491,071 |
n/a |
| Owner-occupied housing units |
59.7% |
66.9% |
| Renter-occupied housing units |
40.3% |
33.1% |
| Vacant housing units |
12.4% |
10.8% |
| Average Home Value |
$453,600 |
$167,500 |
| Average Mortgage Payment |
$1,763.00 |
$1,295.00 |
| Average Rental Payment |
$330 .00 |
$388.00 |
| Total Population |
1,238,158 |
n/a |
| Percentage Male |
49.4% |
49.0% |
| Percentage Female |
50.6% |
51.0% |
| Median Age |
38.5 |
36.4 |
| Under 5 years |
7.3% |
7.0% |
| 18 years and over |
75.9% |
74.6% |
| 65 years and over |
13.6% |
12.1% |
|
1 Year Market Value Change for Hawaii |
| 1yr | 5yr | 10yr |
 |
|
Popular Hawaii Cities and Towns
| Location |
Population |
Median Family Income (2005) |
| Ewa Beach |
14,650 |
$57,073 |
| Halawa |
13,891 |
$63,176 |
| Hilo |
40,759 |
$39,139 |
| Honolulu |
371,657 |
$45,112 |
| Kahului |
20,146 |
$46,656 |
| Kailua |
9,870 |
$40,874 |
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| Maui Mortgage Professionals Inc. |
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Maui Mortgage Professionals Incorporated is a locally owned mortgage brokerage serving all of the Hawaiian Islands. What sets us apart is the knowledge and experience of our Mortgage Consultants. We have the know how to help you to obtain the best financing for your transaction. We have become known for our ability to get the loan closed no matter the degree of difficulty. We have direct relationships with wholesale lenders, including all the large local banks, as well as many progressive mainland based wholesale funding sources. With dozens of lenders to choose from, we can find the right loan for you, at the most competitive rate and terms. Hawaii properties are unique. As a local lender we are familiar with all the unique features of Hawaii real estate. That includes issues related to condos with low owner-occupancy percentage, condotel properties, ohana units, high land-to-value ratios, agricultural zoning, single family detached CPR (condominium property regime), un-permitted portions of the home, etc. Arranging the best loan for your individual situation involves more than just offering a competitive interest rate. We provide skilled assistance in packaging your loan documentation and targeting the correct type of lender in order to obtain speedy approval at a predictable price. Maui Mortgage Professionals Inc.
101 Kaahumanu Avenue Suite E
Kahului, HI 96732
(808) 893-2098 - Phone
(800) 385-6305 - Toll Free/2nd Phone
(808) 871-7997 - Fax
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| Kailua Mortgage, LLC |
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Kailua Mortgage LLC is a Hawaii mortgage broker that takes pride in providing high quality financial services to the public. Our mission is to provide world class service delivering high quality mortgage programs at the most competitive rates in Hawaii. Our Hawaii home loans include: purchase, refinance, cash-out, debt consolidation, home equity loans and lines of credit, second mortgages, construction loans, home improvement loans, condotel loans, leasehold loans, fee purchase loans and other loan types specific to our islands, tailored to your unique set of qualifications.
Need a no-doc loan? No problem - stated income, stated assets, no-ratio loans available too.
How about jumbo loans? Yes! Our mortgage service professionals are accessible to our clients, and strive to obtain the best mortgage loan package no matter how unique your situation is. Kailua Mortgage offers: Local island market knowledge
Lowest interest rate available
Flexible programs for easy qualifying
Fast world-class service with Aloha Two locations to serve you on Oahu and the Big Island of Hawaii
Island home loans made easy! Kailua Mortgage, LLC
970 N. Kalaheo Avenue, Suite C-104
Kailua, HI 96734
(808) 254-3333 - Office
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| Crown American Capital |
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Crown American Capital offers the best mortgage tools available on the internet; easy, convenient, online shopping for the best loan programs and most current rates available, together with the assistance of an experienced, live loan officer to guide you through the often, very difficult and confusing process of selecting the exact loan to meet your specific needs. Crown American Capital will not just sell you a mortgage for your biggest investment. Instead, we focus on your goals and how we can assist you in achieving them through a purchase or refinance program. It has been our experience that most lenders provide you only what you request without sharing all of the advantages that come with having over 100 finance options and programs. We are a full service mortgage broker with an experienced staff offering expertise in every facet of mortgage lending; from purchase to refinance to construction lending. We have access to a full range of mortgage sources and all of our lending specialists are dedicated to finding the right loan for our clients with the best rates, terms and costs. Throughout the lending process we provide regular loan updates and progress reports so clients always know the status of their loan. We also offer a special Mortgage Manager Service for those considering refinancing their mortgage. It is our pleasure to offer all of our exceptional mortgage services online. Through Crown American Capital, you not only have access to the best loans available in the marketplace, you also can review loan alternatives and even apply for your loan at your convenience, online, 24 hours a day. We look forward to placing our mortgage services to work for you! Crown American Capital
43 Corporate Park 201
Irvine, CA 92606
888.995.5081 - Phone
805-995-5087 - Fax
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