Are you in the military and would love to buy a home in Hawaii? The new VA loan limit will help you to achieve this goal. A new NO loan limit is effective as of January 1, 2020! There is no loan limit for eligible veterans and servicemembers who are entitled to use their VA loan. If you can afford the payments and have gotten pre-approved for a loan, you can purchase a home with a zero down payment using your VA loan.
VA Loan Information
No Monthly Mortgage Insurance
Most lenders require a buyer to purchase monthly mortgage insurance if their down payment is less than 20% of the home’s purchase price. With a VA loan, a buyer is not required to obtain this insurance, which provides substantial savings!
VA Funding Fee
The VA Funding Fee is a payment made at closing by a servicemember or veteran who uses their VA benefit to finance their home. This fee can either be paid in cash at closing or can be rolled into the loan.
The fee is used to fund a program to support the healthcare needs of Vietnam veterans who were exposed to Agent Orange from January 9, 1962 to May 7, 1975.
More Information
It’s a great time to purchase a home. Interest rates are still at an all-time low. Using your VA benefits can help you get that home you’re looking for in Hawaii.
Remember to speak to a lender before you begin house hunting. There are many VA loan specialists that can give you more information about the VA “no loan limit.” They will let you know what monthly payments you can afford and feel comfortable with and will also get you pre-approved for your VA loan.
Contact me if you’d like names of local lenders or need more information. I’m happy to help you find your home in Hawaii. Aloha!
Glenn Carr
February 15, 2020
Is the VA Funding Fee based on a percentage of the loan or a set fee. If a set fee, how much is the fee?
Susan Moylan
February 15, 2020
Aloha Glenn! Thanks for reading my blog and reaching out to me. The VA funding fee is 2.3% of the amount borrowed on a VA home loan. The fee however increases to 3.6% for buyers who have already used the VA loan program in the past. Putting 5% down can decrease the funding fee. If you’d like, I can recommend some local lenders on island who can provide you with more information on the VA loan. Just send me your email. Hope this helps!