VA Loans

VA Home Loan, Island Lending Hawaii, Victor Davis

You've Served Us, Now Let Us Serve You!

The VA Home Loan provides veterans with a federally guaranteed home loan which requires no down payment. This program was designed to provide housing and assistance for veterans and their families.


The Veterans Administration (VA) provides insurance to lenders in the case that you default on a loan. Because the mortgage is guaranteed, lenders will offer a lower interest rate and terms than a conventional home loan.  


VA loans also have reduced closing costs and no prepayment penalties.

Additionally, there are services that may be offered to veterans in danger of defaulting on their loans. 


VA home loans are available to military personnel that have either served 181 days during peacetime, 90 days during war, or a spouse of veteran either killed or missing in action.

VA Home Loan Hawaii

Quick history of the VA Home Loan Guaranty Program

The VA Home Loan Guaranty Program is the only provision of the original GI Bill that is still in force.  


Following World War II, there was a vast increase in the Veteran population, and Congress enacted large numbers of new benefits for war Veterans—the most significant of which was the World War II GI Bill, signed into law June 22, 1944. It is said the GI Bill had more impact on the American way of life than any law since the Homestead Act of 1862. 


Between the end of World War II and 1966, one-fifth of all single-family residences built were financed by the GI Bill for either World War II or Korean War Veterans. From 1944 through December 1993, VA guaranteed 13.9 million home loans valued at more than $433.1 billion. 


Eligible loan guaranty users are now able to negotiate loan terms, including the interest rate, which helps VA loan participants to compete better in the housing market. The loan guaranty program no longer has a terminating date and can be used by any Veteran who served after Sept. 16, 1940, as well as men and women on active duty, surviving spouses and reservists. 

Eligibility For A VA Home Loan In Hawaii

You must have satisfactory credit, sufficient income, and a valid Certificate of Eligibility (COE) to be eligible for a VA-guaranteed home loan. The home must be for your own personal occupancy. 



Service during wartime:


  • World War II - September 16, 1940 - July 25, 1947
  • Korean War - June 27, 1950 - January 31, 1955
  • Vietnam War - August 5, 1964 - May 7, 1975

Service Requirements:

  1. At least 90 days active duty - with other than dishonorable discharge
  2. Less than 90 days active duty - if discharged for a service-connected disability


  •  Gulf War - August 2, 1990 - to be determined

Service Requirements:

  1. 24 months continuous active-duty - with other than dishonorable discharge
  2. At least 90 days or completed the full term that he or she was ordered to active duty with other than dishonorable discharge
  3. At least 90 days active duty - and discharged for hardship, early out, convenience of the Government, reduction in force, condition interfered with duty or compensable service-connected disability
  4. Less than 90 days active duty - if discharged for a service-connected disability



Service during peacetime:


  •  All - July 26, 1947 - June 26, 1950 and February 1, 1955 - August 4, 1964
  • Enlisted - May 8, 1975 - September 7, 1980
  • Officers - May 8, 1975 - October 16, 1981

Service Requirements:

  1. At least 181 days continuous active duty - with other than dishonorable discharge
  2. Less than 181 days active duty - if discharged for a service-connected disability


If you were separated from service:


  • Enlisted - After September 7, 1980
  • Officers - After October 16, 1981

Service Requirements:

  1. 24 months continuous active duty - with other than dishonorable discharge
  2. At least 181 days or completed the full term that he or she was ordered to active duty with other than dishonorable discharge
  3. At least 181 days active duty - and discharged for hardship, early out, convenience of the Government, reduction in force, condition interfered with duty or compensable service-connected disability
  4. Less than 181 days active duty - if discharged for a service-connected disability


Active-duty service personnel:


If you are now on active duty, eligibility can be established after 90 days of continuous active duty.  Upon discharge or release from active duty, eligibility must be reestablished.


Selected Reserve or National Guard:


If you are not otherwise eligible and you have completed a total of six credible years* in the Selected Reserve or National Guard (member of an active unit, attended required weekend drills and two-week active duty for training) and one of the following:

  • Were discharged with an honorable discharge
  • Were placed on the retired list
  • Were transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable service
  • Continue to serve in the Selected Reserve

*Individuals who completed less than six years may be eligible if discharged for a service-connected disability.



 You may also be determined eligible if:


  • You are an un-remarried spouse of a Veteran who died while in service or from a service-connected disability
  • You are a spouse of a Servicemember missing in action or a prisoner of war
  • You are a surviving spouse in receipt of Dependency and Indemnity Compensation (DIC) benefits in cases where the Veteran's death was not service-connected

Note:

A surviving spouse who remarries on or after age 57 and on or after December 16, 2003, may be eligible for the home loan benefit.  However, a surviving spouse who remarried before December 16, 2003, and on or after age 57, must have applied no later than December 15, 2004, to establish eligibility.



Spouses


The spouse of a Veteran can also apply for home loan eligibility under one of the following conditions:

  • Unremarried spouse of a Veteran who died while in service or from a service connected disability, or
  • Spouse of a Service-member missing in action or a prisoner of war
  • Surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003
    (Note: a surviving spouse who remarried before December 16, 2003, and on or after attaining age 57, must have applied no later than December 15, 2004, to establish home loan eligibility. VA must deny applications from surviving spouses who remarried before December 6, 2003 that are received after December 15, 2004.)
  • Surviving Spouses of certain totally disabled veterans whose disability may not have been the cause of death 


Other Eligible Beneficiaries


You may also apply for eligibility if you fall into one of the following categories:

  • Certain U.S. citizens who served in the armed forces of a government allied with the United States in World War II
  • Individuals with service as members in certain organizations, such as Public Health Service officers, cadets at the United States Military, Air Force, or Coast Guard Academy, midshipmen at the United States Naval Academy, officers of National Oceanic & Atmospheric Administration, merchant seaman with World War II service, and others

VA Home Loan Hawaii

VA Home Loan Hawaii

Credit and Property Eligibility For A VA Home Loan In Hawaii


Minimum Credit Score:   550


The VA does not have a minimum credit score requirement in order to obtain the VA guaranty. However, individual lenders do set minimum credit scores and credit worthiness in order to provide the VA Home loan. At Island Lending Hawaii, the minimum credit score for a VA Home Loan is 550.



Eligible Properties:


The VA Home Loan can be used to finance a range of properties as long as it is/will be for primary use and it meets VA Minimum Property Requirements (MPR). Properties that can be financed are:


  • Single Family Residences
  • A two-plex, three-plex, or four-plex as long as one is being occupied by the veteran
  • VA Approved Condominiums
  • Manufactured homes


VA MPR Standards:


The VA aims to protect it's veterans and imposes minimum standards on properties being financed. In existing and new construction cases, the MPR provide a basis for determining that the property is;


  • Safe
  • Structurally sound
  • Sanitary
  • and meets the standards considered acceptable in a permanent home in its locality

VA Home Loan Hawaii

VA Home Loan Hawaii

Advantages Of A VA Home Loan In Hawaii


The VA Home Loan has many advantages over other loans because of the guarantee the VA provides for it's veterans. This guarantee allows for more favorable terms, including:


  • No down payment as long as the sales price doesn't exceed the appraised value.
  • Lower interest rate than conventional loan
  • No private mortgage insurance premium requirement.
  • Hawaii VA Jumbo up to $1.5 million (some down payment require)
  • VA Streamline Refinance
  • VA Cash-Out refinance to 100% LTV
  • Relaxed credit requirements
  • VA rules limit the amount you can be charged for closing costs.
  • Closing costs may be paid by the seller.
  • No penalty fee if you pay the loan off early.
  • VA may be able to provide you some assistance if you run into difficulty making payments.

You should also know that:

  • You don't have to be a first-time home buyer.
  • You can reuse the benefit.
  • VA-backed loans are assumable, as long as the person assuming the loan qualifies.

VA Home Loan Hawaii

VA Home Loan Hawaii

The VA Home Loan Process In Hawaii


Though there are many variables with any purchase, the VA Home Loan process can be fairly simple when done right with good planning and professionals by your side. Follow the steps below and you'll be on your way to purchasing your new home. For VA Home Loan refinances, please contact us. 


  • Find a local Hawaii real estate professional to work with. 
  • Contact us for your pre-qualification so you know what your purchasing power is
  • Get your  Certificate of Eligibility (COE) or contact us and we'll get it for you
  • Find a home and sign a purchase contract
  • Once contract is signed, your loan goes into processing. Appraisal and termite inspection is ordered and all underwriting conditions are satisfied
  • Loan closes and you're a proud homeowner!



VA Home Loan Hawaii

VA Home Loan Hawaii

Resources For A VA Home Loan In Hawaii


Loan Limits:

  • Hawaii Island - $679,650
  • Oahu - $721,050
  • Molokai - $679,650
  • Kauai - $713,000
  • Maui - $679,650

*Jumbo VA Home Loan up to $1.5 million available with some down payment



Certificate Of Eligibility


The VA Home Loan is a great benefit for our veterans and enables them to share in the American dream of becoming Hawaii homeowners. 


Please contact us with questions about the VA Home Loan on Maui, Oahu, Kauai, Hawaii island, or to fill out an application. We look forward to speaking with you. Aloha!