Like everything we are seeing in the current world events from the COVID-19 pandemic, Hawaii is being impacted. As a broker who works closely with VA buyers and sellers, this chain of events has now effected our brave men and women of the armed forces.
Military Travel Ban
The Pentagon just announced sweeping changes for all troops, including PCS moves. They are halting domestic travel, PCS moves, and temporary assignments. This will be in effect currently through May 11, which is about 60 days. Starting Monday, service members, their families, and DOD civilians workers will be restricted on how they can move about the U.S. and its territories. This action was approved by Deputy Defense Secretary David Norquist.
How Will This Affect Current Real Estate Deals in Hawaii?
As with everything going on in the world, it is very hard to say. As of now, the VA occupancy guidelines show a VA buyer can purchase, close, and then needs to be in the home within 60 days of closing. There is a footnote to that as the rules also state unless there are extraordinary circumstances. It is up to the VA to say what that might be, but the Coronavirus certainly appears to be an extraordinary world event, in my opinion. So what does this all mean for a VA buyer that is currently in contract and set to close within the next 60 days? Go ahead with the transaction as planned, and as long as life resumes May 11th as far as PCS moves, all should be good. It is a very shaky time for all, but life will resume.
This is a difficult situation for a VA seller. Many had house hunting trips planned for their next duty station. This is possibly a good time to rely on your broker who is handling the buy-side or the developer if its new construction. I have represented many buyers who have made a purchase site unseen. This is done by video, great pictures, Facetime, and extensive conversations. Much can be accomplished using technology.
Interest Rates Are Low
The interest rates still are bouncing around but now are sitting at 50-year lows. The VA rates are incredibly low, so this is the time to take advantage of the terms. The rates won’t stay like this indefinitely, and those who are not afraid can lock down some historically low rates and secure lower payments than previously anticipated.
Want to Know More?
If you would like some more information or simply need someone to listen and advise, please do not hesitate to reach out. I can be connected by text, voice, or email at any time. We are all in this together, and now is the best time ever to realize we are all one and need to help each other.