Archive for the 'Mortgages & Financing' Category
FHA Is Key To Low Down Honolulu Home Buyers
October 1st, 2009 categories: For Buyers, For Sellers, Mortgages & Financing
The Federal Housing Administration (FHA) residential loan programs are the last low down loan programs available for non-veteran barrowers. The maximum loan available for a Honolulu home or condo is $793,750 and a buyer can put as little as 3.5% down. Compare that to a 10% down payment requirement under current conventional loans. Forbes has an interesting article talks about recent growth in the use of FHA loans.
“During the current recession, the New Deal-era FHA’s share of government underwritten mortgage business in the U.S. has surged to 23%, despite increasing concern about asset quality and potential losses. Following its report, there are fears that the FHA’s financial woes could necessitate a significant injection of government funding.”CLICK HERE TO READ THE FORBES ARTICLE
If you don’t think you have enough cash on hand to meet current down payment requirements, think again! The use of an FHA loan and proper planning can get you into your new home with very little cash out of your pocket.
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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Commercial Bubble Could Help Honolulu Home Market
September 21st, 2009 categories: Mortgages & Financing
Let me start by saying I am not a commercial real estate broker, however, as a Honolulu residential Realtor it is important to be aware of other aspects of our market. A post at The American goes into great detail about the over-leveraging of the national commercial real estate market.
“Many are accustomed to thinking in terms of a ‘housing bubble.’ But this is only part of the story. In fact, the first decade of the 21st century brought us a real estate double bubble—one in housing, and one in commercial real estate.”
CLICK HERE TO READ THE AMERICAN POST
According to a commercial brokers I know, resetting adjustable mortgages will impact the Oahu commercial market. The silver lining is that our market is not over-built like some mainland markets. If the commercial market is hit, then this may be good for Honolulu homes and condos.
Technological shifts have been pushing more and more workers home (to work virtually) and as companies cut back, I believe, you will see more workers heading home. Because many businesses can be run from a home office, you may see homes or condos with an additional room come into high demand. Think about it.
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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Honolulu Home For Sale-Hidden Paradise In Heart Of Town
September 17th, 2009 categories: Mortgages & Financing
Perfect for extended family living! 3 bedrooms 2 bathrooms upstairs and a separate 1 bedroom 1 bathroom downstairs (it cannot be rented). This home is listed for sale by another real estate firm. Here are the details. Read the rest of this entry »
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Lenders Slowing Recovery of Honolulu Real Estate Market
September 14th, 2009 categories: Mortgages & Financing
As a Honolulu Realtor that is in the core Honolulu real estate market everyday, I am sensing that it would like to start moving up! Because the banking industry has instituted very tight lending and appraising guidelines, the market has been held back from a quick and stronger recovery. Here is why. Read the rest of this entry »
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Honolulu Home For Sale-Manoa Duplex
September 11th, 2009 categories: Mortgages & Financing
It is not often that I walk into a property and wonder to myself, “Why hasn’t this property sold?” That happened this past Wednesday when I visited this well presented Honolulu home. Located in one of Honolulu’s most desirable neighborhoods, Manoa, you could live in the upstairs and rent out the downstairs. Or if you have extended family, you could live together with both parts of the family having quite a bit of privacy. Here are the salient points concerning the house. Read the rest of this entry »
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Learn From This First Time Buyer’s Experience!
August 5th, 2009 categories: For Buyers, Mortgages & Financing
Brendt Montgomery has his 15 minutes of fame! Unfortunately, it may not be the way he wanted to get it. Brendt volunteered his story for a recent Wall Street Journal article about mistakes that can be made by first time buyers not doing homework or rushing into a sale. The entire article is worth reading, even if you are a seasoned buyer.
“Luckily, there was a contractual loophole: His parents rescinded the down payment money that they were gifting him, so he no longer qualified for a mortgage. The agents involved didn’t press for the commission, but he lost his deposit.”
CLICK HERE TO READ THE WALL STREET JOURNAL ARTICLE
Not mentioned in the article, but important to consider, is the belief that if a buyer can only find a “distressed” property, a great buy shall be had. This may or may not be true, consider these thoughts.
1. Compare any property to the relevant active, pending and sold listings to determine if the price you are paying is appropriate.
2. Always have a home or apartment inspected by a professional inspector. Given the magnitude of the sums involved in real estate purchases, it is always, did I say always, a good idea to hire a qualified home inspector. If nothing is found you can sleep better when you move in, if there are issues, whether or not a seller will repair them, at least you will know what you are getting and can plan to deal with the problems. Paragraph C-51 of the Hawaii Association of Realtors Purchase Contract, allows the buyer a period to inspect the property and if the buyer becomes uncomfortable with buying the property, they may cancel the deal during this time frame and get their deposit back.
3. Distress properties can be very good buys and I have seen buyers get terrific purchases through properties that are not distressed. Again, take each property on its own merit, do your research and make you offer based on your estimate of the home’s market value. Just because it is a foreclosure, REO, bankruptcy, sheriff’s sale or some other form of distressed property, don’t assume it is a great deal.
4. Determine your ability and desire to fix things. If you aren’t handy and don’t have weekends and evenings to work on your home, you will be better off buying a house that requires no work. Remember, many distressed properties were not well taken care of by the previous owner and could require a great deal of work.
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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Leverage Is Still Good!
April 14th, 2009 categories: For Buyers, Mortgages & Financing
One of the beauties of real estate is that you can use a few dollars to control a much larger number of dollars. For example, you buy a $300,000 FHA approved condominium and use a down payment of $9,000 (3%); you have just used $9,000 to control $300,000. This is called leverage. What is the magic of leverage?
Let’s say your $300,000 Honolulu condominium appreciated at an average of three percent (3%) per year for the next 10 years. The valuation of the unit would look something like this. Read the rest of this entry »
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Government Making Things Worst?
February 24th, 2009 categories: Mortgages & Financing, The Market
Could the Government’s intervention in mortgage foreclosures be making things worst? The Wall Street Journal has an interesting article about the “moral hazard” created by bailing out barrowers.
“Another concern is that borrowers are stopping making payments in order to get help. That’s because mortgage companies often won’t modify the loans of troubled borrowers until they’re delinquent.”
CLICK HERE TO READ THE WSJ ARTICLE.
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Low Down FHA Financing For Honolulu Real Estate
February 6th, 2009 categories: For Buyers, Mortgages & Financing
Conventional lending guidelines in Honolulu have tightened dramatically. Below is an outline of current conventional lending rules.
1. When using less than 20 % down, the owner occupancy of a building must be 70% or more (up from 51%).
2. Most conventional lenders are requiring a minimum of a 10% down payment.
3. Conventional appraisers have become much more conservative with their appraisal values.
4. Maximum loan amounts are $625,500. There are higher balance loans with tougher lending guidelines up to $791,250.
5. Maximum credit from seller toward closing costs 3.0% of the purchase price.
6. Loans are not assumable.
Thank goodness that the tried and true Federal Housing Administration (FHA) loan programs are still available for Honolulu real estate. Here are the generally available terms. Read the rest of this entry »
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VA Loan Amounts For Honolulu Real Estate Rise!
February 5th, 2009 categories: Military, Mortgages & Financing
As of January 1, 2009, the maximum VA loan amount for a house or condo on Oahu is $783,750. This is up from $625,500! If you are active duty military or a veteran, this is a terrific tool for buying Honolulu real estate. Call me locally at 808-737-2093 or toll free at 877-737-2093 to discuss your VA buying options.
CLICK HERE TO GO TO THE VA.
Today’s view is looking over the Pali toward Kailua.
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