Tag Archives: sold

2016: Three Ways to Buy a House with No Money Down

BY KATRINA VALCOURT

It sounds too good to be true, but imagine taking out a loan to buy a house without putting any money down. Conventional wisdom suggests you need to front at least 20 percent of the purchase price of a home, but it turns out there are ways to qualify for a loan without a huge down payment. “Most people don’t know about it,” says Kalama Kim, president of the Honolulu Board of Realtors, who will lead a seminar on March 26 explaining how this is possible. Here’s a quick rundown of each option:

1. JOIN THE MILITARY

VA loans from the U.S. Department of Veterans Affairs are available to veterans who meet certain criteria. While most people probably won’t want to join the military just to buy a house, current or soon-to-be veterans should look into VA loans, which Kim says offer the same fixed rate as regular mortgages, but with no money down.

2. BUY A HOUSE IN A RURAL AREA

The U.S. Department of Agriculture issues loans with no money down for houses in certain areas along the Wai‘anae coast, in Kapolei, ‘Ewa Beach, Makakilo, Waikele, Waipi‘o, Kunia, along the North Shore and in Waim?nalo. “A lot of the island is eligible,” says Kim, though there are income restrictions and you will have to pay a mortgage insurance premium if you don’t put any money down. USDA loans are only for owner-occupied residences.

3. GO NATIONAL

There’s another, non-government program that utilizes national vendors to get you a loan for a house anywhere on the island, worth up to $1 million. The interest will be higher and you’ll have to join a credit union, but you won’t have to put any money down at the start.

A fourth option could be a Hula Mae loan, but Kim says the program has not been funded in two years.

Learn more at the “Buying with No Money Down” seminar, where Kim, along with a loan officer and a realtor, will go into detail about these programs. They will also go over how to negotiate when you’re up against someone else who can put money down. “It’s actually not too good to be true,” he says.

(source: buy a house with no money down)

2013: Median Price for a Home = $1 Million

Honolulu home sales continue to move at a fast pace. Single family homes received an accepted contract in just 17 days, condos were sold in 20. Prices are also increasing as high demand and low inventory continue to thrill sellers with multiple over-asking price offers.

Buyers paid, on average, $788,000 for a single family home and nearly $400,000 for a condo in July. Economist Paul Brewbaker told Honolulu Magazine, “People are going to have to wrap their heads around the idea of a median single-family home price on Oahu of $1 million before the 20-teens are over. It’s conceivable home prices could double….within the 20-teens.”

But, don’t forget that interest rates are still very low. Interest rates continue to hoover at around 4%. I know that large price tag may sound scary to a lot of you home buyers. Especially when many are finding it difficult, even with over asking price offers, to get into escrow. That large price tag does not mean all the homes are selling for that price. There are still a lot of homes available for under $500,000.

SEE HERE: Honolulu HOME SEARCH. This next property may not be the home of your dreams, but it is important to look at this time frame in real estate as an opportunity.  Even with the market lows and highs, Honolulu home values have on average increased 5% every year since 1985. Not a bad investment! So, basically what it comes down to, is just get your foot in the door. Get something you can make payments on, make it your home, or rent it out. But, just do it!

And when you’re ready, e-mail me at camillenaluai@yahoo.com.

ALOHA!