BAH Calculator Hawaii What You Really Make
August 24, 2018
BAH Calculator Hawaii What You Really Make
BAH Calculator Hawaii What You Really Make Every intelligent, active duty military service member checks their BAH Calculator… …Especially if you’re going to be stationed to live here in Hawaii! True Story: The situation you’re going to read about may shock you to know. It certainly shocked us, and we decided to do something about it… …And that’s why we wrote this article. We sat down with an E-8 who had just retired from service. All of this gentleman’s hard-earned BAH went to on-post military housing. When we showed him the reality of what he really made after 25-years of BAH payments on the BAH calculator, his heart sunk and he slouched down in his chair. His eyes began to tear up, and he let out a deep sigh. That’s when he said… …”After all these years, I have nothing to show for.” Reality Sets In: He did have something to show for because he worked hard to be where he was. We were indeed proud of him (and thankful for his service), and the fact that he was determined to start a new chapter in his life and purchase his very first home, showed us he had many things to show for… …But we completely understood where he was coming from with his statement. The Good News: Luckily for this honorable individual, he was sitting with us in a face to face meeting that day. He knew he wasn’t getting any younger, and that day he decided to buy home. The Bad News: Sadly, we have met many service members from every branch, at almost every rank, who have expressed their regrets to us about wasting their BAH instead of benefiting their own personal situations. We often hear our service members tell us “if I had only known earlier…” You came here to check your Hawaii BAH Calculator, but don’t wait till reality sets in on you. Make sure to reach out to us so we can help you achieve your real estate goals! Knowing is Half the Battle: Make sure to read this whole post because it will be very informative to acquire the knowledge contained within this article… …However, it will only be life changing if you act on it. That’s where we come in to help, so make sure to reach out to us after your done. We wrote this article (BAH Calculator Hawaii What You Really Make) to give you the BAH rates you’re looking for… …And to KEEP YOU INFORMED of the REAL AMOUNT you’ll make while serving overseas in Hawaii. You May Be Asking: “What is the real amount I’ll Make in Hawaii?” First of all, and so we’re on the same page… …BAH is not free, and neither is on-post military housing. That’s because you work hard for it and in exchange for your work, on-post military housing consumes your BAH. We hope you do understand that it actually costs you your BAH (money) if you’re living in on-post military housing. We will discuss the real amount of BAH you’ll make but first let’s look at the actual numbers. According to the Defense Travel Management Office, the BAH rates for 2018 are as follows: Now that you’ve seen the Hawaii BAH calculator rate… …What did you think? Do you see what you really make? The BAH Calculator does not tell the whole story! We Think: The Hawaii BAH calculator is something to get excited about because in comparison to most of the other duty stations… …there’s way more BAH you receive in Hawaii. We also think you’re going to love this article (BAH Calculator Hawaii What You Really Make) when you’re finished reading it just as much as we enjoyed writing it for you! If you want to know more about the process of buying your first home, learn what it takes by clicking on this link when you’re finished: http://blog.chime.me/www-hawaiipropertyfinder-com/homes-for-sale-in-hawaii-first-time-home-owners-guide/ What Do You Really Make…? In contrast, you could be thinking that due to the high housing prices here in Hawaii it’s not that big of a deal. Yes, You’re Right: The cost of housing (rent/mortgage) payments in Hawaii is much higher in comparison to many other duty stations… …Thus, the Hawaii BAH Calculator is set higher than other duty stations to mitigate against the steep housing prices. There is a catch though… Here’s Why BAH in Hawaii is Amazing: What if you knew you could pay yourself the Hawaii BAH calculator rate each month and retain a portion of it each time you pay your mortgage? Similar to that of a savings account, when you pay your mortgage each month you actually pay yourself too… …But when you pay rent or live in on-post military housing, you’re giving you’re hard earned BAH to someone else. If your curious and want to know more about your monthly mortgage payment, we have a mortgage calculator article that breaks down your monthly payment for you. You can read about it by clicking here: http://blog.chime.me/www-hawaiipropertyfinder-com/your-mortgage-calculator/ Did You Know: Private businesses have contracts with the government allowing them to not only manage… … but to actually “Own” the on-post military housing service members are living in now. This even includes the barracks. Can you believe it??? So that means if you’re serving in the Army, Navy, Marines, Airforce, or Coast Guard, more than likely you’re paying a private corporation “ALL OF YOUR BAH.” If you don’t believe us, just walk into your on-post military housing office (or give them a call) and ask them “who owns the on post military housing?” When you find out a private company does and that We’re Telling You the Truth… …You’ll now know why you’re never taught the education (while in service) regarding paying yourself BAH. These private businesses actually lobby in Congress to keep you uninformed so they can keep your BAH. Thankfully, keeping you up to date and informed is our responsibility… …That’s why we’ve made this information available so your intellectually equipped to achieve the homeownership mission Before it’s Too Late. As a result, rather than paying someone else, this is just one reason you should pay yourself! Remember: When you live on post, you’re handing over your BAH and helping a private company to get rich… …While those same companies literally lobby in our Congress each year, to retain as many military service members in the on-post military housing for as long as possible. If you want to learn about ten things the VA Home Loan Benefit offers active service military members, and veterans make sure to click this link when you’re finished reading: http://blog.chime.me/www-hawaiipropertyfinder-com/the-va-home-loan-benefit-10-things-to-know/ Thinking of Renting off Post? Sure, you could be saving a little of your BAH each month if your rent off of the post… …Because you can rent something that’s cheaper than what you would make from your Hawaii BAH Calculator rate and merely keep the difference… …But similarly to on-post military housing, when you rent off the post, you’re paying off someone else’s mortgage and making them rich too. “Above All, Our Question To You is”: Rather than paying someone else, why not pay yourself your own money? Here’s the Kicker: First of all, whether your married or single you’re most likely going to be stationed in Hawaii for three years. “Why?” You Ask… …Because the DEERS (Defense Enrollment Eligibility Reporting System) requires that service members sign up for the program for three years here in Hawaii. This requirement is usually the mandatory time frame to stay in Hawaii. Now That You Know: You could receive three years of Hawaii BAH payments to pay down your own home… …And quite frankly, that’s amazing! Three Years of BAH Added Up Hmmm? We wrote this article (BAH Calculator Hawaii What You Really Make) so you can see the reality of exactly how much BAH you’ll make while living in Hawaii. Let’s Get Started: To know how much you’ll make in Hawaii over the next three years, first take a look at the BAH calculator rate chart (listed above) again. Furthermore, take the amount you’ll make (based on pay grade and marital status) and multiply it by twelve months for the year. This will give you the yearly BAH Calculator rate. Once you have the yearly BAH Calculator rate amount, multiply the yearly amount by three years. This will give you a forecast of what you’ll make for the next three years. Here’s an Example: For this scenario, we’ll use an E-5’s pay grade, with no dependents, which comes out to $2,202 per month. Your Math Should Look Like This: Keep in mind, that we already know that at a bare minimum a service member will serve a three-year overseas tour in Hawaii. Next, let’s multiply the $2,202 by twelve months to get the yearly amount of BAH Calculator rate amount, which is $26,424 per year. From here, we can multiply the yearly BAH Calculator rate amount ($26,424) you’ll receive, by three years, which is a total of $79,272. Look at the example below: Quick Recap: In the example above, an E-5 without dependents makes an additional $26,424 per year and in contrast $79,272 over the next three years… …And that’s if you’re not up for promotion. Not sure if you see this yet, but this is extra money you get to use to increase your own wealth! Most Noteworthy: “YOU ARE LITERALLY MAKING THIS MONEY WHETHER YOU LIVE ON POST OR NOT!” Whatever your BAH Calculator numbers come out too, indeed it’s a tremendous amount of your energy invested in serving our nation. Think About This: For this example, an E-5 makes more than triple to quadruple the amount of a reenlistment bonus! Another reason to pay yourself, but that’s not all… How Do You Pay Yourself? Think of a Car Payment: Each time you make a payment, a portion of your payment goes to the interest on the loan, and a part of your payment goes towards the principle of the loan. The bank charges you interest on the loan for the reason that you’re borrowing their money, and that’s what the bank makes back from you. The principle you pay on the mortgage loan goes back to you if you ever decide to sell the car in the future. Similarly, a mortgage works the same way… …However, cars depreciate over time while housing prices in Hawaii and rents double almost every ten years. Imagine This: So while you’re paying yourself down principal payments on your mortgage, you have a chance to gain appreciation on the home as well. Another reason why your Hawaii BAH is fantastic… …And that’s only a small glimpse of what you can make! Ready For The Full Picture? So we just looked at how you can total up your BAH for the next three years. We also discussed your principal payments and appreciation when owning your home. “What Next?” We wanted to give you an authentic example of how much you would save if you owned your own property. Let’s Start Here: For every $500 you can spend on a fixed 30-year mortgage loan that has a fixed 4.5% rate… …You can borrow $100,000! Take a Look at This Chart: After you looked at the Hawaii BAH Calculator, this is an easy way to determine a comfortable monthly mortgage payment and home price. However, there are still other payments that come along with your mortgage that you need to know about. Here is a break down of expenses for what a typical monthly housing payment looks like: • Mortgage (Principle & Interest) • Real property taxes (Hawaii has lowest in the nation) • Home Owner’s Insurance • Maintenance Fee (Not For Single Family Homes) Example: So if Your BAH was $2,500, you could borrow $500,000. However, for this example, we will use an example of a condo/townhome purchase of $400,000 with a $400 maintenance fee. We will also include taxes and insurance. Your payments would look similar to this chart: As you can see in this example, your payments would be just under your monthly Hawaii BAH amount you work hard for. You would end up saving an additional $35 a month, which would work out to $420 a year, or $1,260 extra over the next 3 years. Quick Note: If you want to know why real estate can be so expensive in Hawaii on Oahu, read this article we wrote by clicking here: http://blog.chime.me/www-hawaiipropertyfinder-com/homes-for-sale-oahu/ Here’s The Best Part: The principle on the loan is the amount that will come back to you when you decide to sell your home… …But it is important to remember that over the last 40-years condos/townhomes have appreciated by 6% on average. It Gets Better: The interest you pay can be claimed as a tax deduction against your income… …Meaning, you’ll need to talk to your CPA and get legal tax assistance so you can request a portion of the interest you paid each year. From there, you can deduct the interest percentage off of your yearly income first, before being taxed by the government and state. “This means you pay fewer tax dollars and earn more tax-free money!” Let’s look at a more in-depth example of what you would make from purchasing a $400,000 property with a fixed mortgage on 30-years at a fixed 4.5% interest rate having a maintenance fee of $400. Take a look at what you would really make over three years. In this 3-year example, you would have: Paid yourself $20,262 in principle, took a deduction claim of $52,701 against your income, and your property would have appreciated by $37,091. That means if you were to sell your home at the new market value in the third year, you would have made back your principal payments of $20,262 and the appreciation of $37,091. When you add your principal you paid down with your appreciation, in real estate, we call that “equity” and equity is your money. In this case, if you purchased property here in Hawaii and then sold it three years later, you would have captured $57,353 of Equity. Remember… …This example is only using 3% appreciation. If we used the standard pattern of 6% appreciation instead, the value increase would be double the amount of $37,091, which would be $74,182 (not including the principal paid down). Let’s Compare: We know the formula for what you would make using the scenario above. However, do you know what happens when your not an owner? You Miss Out On: • Principal Payments • Appreciation • Tax Deductions When you live in on-post military housing or rent off the post… …After 3-years you literally walk away with Nothing. We think you’re much smarter than that. Remember the story we told you above, regarding the E-8 who was upset that he never bought a home? Don’t let this happen you! Your Hawaii BAH Calculator is here so you can do something about it now! Call us today or sign up to find out how you can take advantage of your the money you make from the BAH calculator. Here are just a few reviews we received from real active military service members and veterans who were just like you: To see more about our team’s service click here: https://www.zillow.com/profile/hometeamhawaii/ You can also visit us on our website and start looking at homes now by clicking here: http://www.hawaiipropertyfinder.com Recap: Now that you know what you really make from your Hawaii BAH Calculator rate… …There are two choices: 1. Pay yourself and make more money! 2. Pay someone else and let other people take your money. The choice is up to you, but we know you’re smart enough to stick with the first choice. Exceptional Value You Can Rely On: The Bottom Line: We will accomplish the homeownership mission with you! In using your VA Home Loan Benefit, know that you can always rely on us to help you! Thank you for your service to our country… …Now it’s our turn to serve you! Here’s A Bonus: We are certified Military Relocation Professionals! Above all, you should “Sign Up Below” and schedule an appointment with us today. We look forward to serving you with all of your VA Home Loan Benefit Needs! “Thank you for reading this post.”
Homes For Sale In Hawaii A Buyer's Guide
August 21, 2018
Homes For Sale In Hawaii A Buyer's Guide
Homes For Sale Hawaii A First Time Home Buyer’s Guide We have some great information to discuss as it pertains to “Homes For Sale in Hawaii.” Furthermore, this is a step by step guide to teach you the important things you need to know when buying a home here in Hawaii on the island of Oahu. If you are an active military member or veteran please click here http://blog.chime.me/www-hawaiipropertyfinder-com/the-va-home-loan-benefit-10-things-to-know/ to read about the advantages of the VA Home Loan Benefit. Living in Hawaii is great. Owning your Home in Hawaii is great. But when you can do BOTH? That’s when you reap the benefits of Home Ownership In Hawaii… … And there are plenty of benefits waiting for you. If you want to learn more about the advantages and benefits of home ownership make sure to read more here http://blog.chime.me/www-hawaiipropertyfinder-com/homes-for-sale-oahu/ when you’re finished reading this article! Look: You’re curious about buying your first home in Hawaii, but do you know where to start? We do… This is an excellent guide written for those serious first time home buyers willing to work toward the goal of home ownership! This knowledge is always discussed in our office. The following information has helped hundreds of people. And now, it’s time for your journey to start searching homes for sale in Hawaii. Remember to set up a face to face consultations with us today after reading. We know that the decision to buy your first home is a big game changer to help you build wealth. Home Team Hawaii is passionate about helping you! Let’s get started! Facing Objections: Has the thought of home ownership in Hawaii seemed difficult? Here’s the Deal: Some believe it is just too difficult to buy a home for sale in Hawaii. This causes them to give up on home ownership altogether. It Gets Worse: Some quit pursuing homeownership because of hearsay. They end up throwing in the towel and giving up. “We’ve heard almost every objection imaginable.” Common objections like these: I have bad credit, so I can’t qualify. I want to pay my debt down before I start. I’m moving in a year. What happens if I move? Buying a home in Hawaii is expensive. I’m just going to wait for a while. Luckily for the both of us, we noticed a definite trend, which defies those every day objections. Those we helped become first-time homeowners were: Educated Disciplined Committed Confident Schedule a sit down with us, and let’s get on your way to buying a home for sale in Hawaii. Confidence In Home Ownership: Say this every day, until it happens: “I will buy my first home in Hawaii!” Some people start off with confidence. It’s a natural characteristic inside of them. They effortlessly take charge of their situations like it was second nature. If that’s you, “great,” your one step closer! On the contrary, some prefer to sit back and let the opportunity of homeownership pass them by. If that’s you, no worries: We’re here to help you recognize homeownership opportunities! Three opportunities you need to know about: Appreciation (homes goes up in value over time) Principle payments (the principle on the loan balance goes down) Interest deduction (interest on the mortgage can be deducted) You Can Build: The confidence needed and required after you schedule an appointment with us. Our team is entirely ready to help you every step of the way. Now that you are aware let’s build confidence! Home Ownership Benefits: Most Noteworthy: Buying homes for sale in Hawaii can present challenges… …But buying a home for sale in Hawaii can also present opportunities! When you have us on your team you win. Here are ten ways you can build wealth by owning a home: You Can Create Wealth By: Buying your own home and paying yourself! Here’s a quick list of some of the wealth opportunities you’ll gain: Pay yourself principle each month, and when you sell your home in the right time frame in the future you can capture the principle back. Capture the appreciation on your home, which is the increase that properties go up in value over time. The interest you pay on your mortgage is a tax deduction against your income (talk to your CPA and or tax account to find out more). No capital gains tax if you sell your home within two of the last five years that you lived in your property. Gain the knowledge and control of being an owner of your living situation. Help and encourage others to do the same. Buy and sell more homes in the future. Build a safety net of long-term assets to increase your wealth over time. The Home Ownership Process: “Feeling confident yet?” Please read further. Below entails simple steps explained for buying homes in Hawaii for sale: Meet Up With A Realtor: Realtors (that’s us) are licensed professionals who serve two types of clients: Help home buyers (buy homes) Help sellers (sell homes). It’s better to get to know who you’re working within a professional environment. And in meeting us, we’ll discuss your goals and plan your success together. We will always uphold: A legal duty in serving your best interest. A fiduciary duty in serving your best interest. Being fully committed to you, we are here to represent your needs with the utmost care. Meet With A Mortgage Lender: Mortgage lenders help you get pre-approved (read about this more below) for your loan. If you want an idea of what you can borrow for your mortgage click here on our http://blog.chime.me/www-hawaiipropertyfinder-com/your-mortgage-calculator/ Like the Realtor, you’ll want to know the lender obtaining hundreds of thousands of dollars to help you buy your home. There are four loans we typically see being used to purchase homes for sale in Hawaii: Conventional Loan VA (Veteran’s Affairs) Loan FHA (Federal Housing Administration) Loan USDA (United States Department of Agricultural) Loan The mortgage lender is also to uphold: A legal responsibility in serving your interest. A fiduciary responsibility in serving your interest. There will be some documentation you’ll need to gather first. Pre-Approval: Many first-time home buyers we meet make two big mistakes: Go to open houses before they even know what they’re approved for. Search online before they even know what they’re approved for. Now Answer This: Would you try to buy something at the store without knowing what you can afford? The pre-approval does three things for you: It saves you time from unknowingly searching around. You can get into a property faster You start gaining home ownership benefits faster As Time Passes: Prices of homes can go up Interest rates can go up You’ll save money if you lock in a lower interest rate on the loan before rates go up… …And that’s why obtaining you pre-approval first is so essential. You’ll want to give the mortgage lender the necessary required documentation (read more about this below) as soon as possible. And in return, you’ll receive the pre-approval letter, which includes the amount you can borrow. Remember: “Just because you can borrow a certain amount doesn’t mean you should.” There’s 2 reason your monthly payment goals should always be discussed: So your lender can identify the monthly payment you want to have and tell you how much you can borrow based on that amount. So your Realtor can search for properties in your desired price range. Stay Organized: Here’s a quick list of what you will want to have ready for your mortgage lender to obtain your pre-approval letter: Last 2 years of W-2’s Previous 2 Years of Income Tax Statements Most Recent 2 Months of Banking (checking/saving) Statements Last 2 Months of Pay Stubs (LES Statements If Military) A State or Government Issued Identification Card Last month of any Investment Statements (Roth IRA, CD, TSP, Stocks, bonds, etc. if applicable). Alimony or Child Support Payment Documentation (if applicable). Once you’ve obtained and organized the documentation, you will be ready to see the mortgage lender. Keep in mind, we know many mortgage lenders we can refer to you. Just a Quick Note: It is essential to shop around to see which mortgage lender offers the best types of loan products and incentives for your situation. This includes: Current Interest rates Down payment amounts Appraisal costs coverage Closing costs coverage Other financial areas you feel works more in your favor. Know The Market You’re Buying In: Your Realtor needs to know the market (we certainly do), but it’s just as important that you do too. There are 5 important variables that can affect the prices of real estate: Economical Social Political Environmental Technological Legal Since most real estate sales happen on the island of Oahu, we’ll keep the discussion to Oahu’s market. “Oahu’s real estate market is interesting.” Here are two economic variables that make up the market: Supply: (Very Limited) Demand: (Very High) Simply put: Many people Want to buy homes for sale in Hawaii There’s not enough to go around. There are two major effects that occur because of our market variables: Many people pay over the asking prices of homes Property prices almost double every 10 years (see the graph below). This is concerning because while the population is rising, there are not enough homes available to buy, and not enough houses are being built fast enough either. To give you a better understanding let’s look a little more in depth here. Quick Market Outlook: 1.4 million people in the State of Hawaii. Over 950,000 (almost 1 million) people who live on Oahu. Each year, for almost a decade there are less than 3,000 homes available for sale. The State of Hawaii says it needs to build 3,000 additional homes each year. The State of Hawaii only issues 1,500 permits to developers each year. Not all of the 1,500 permits are actually being used each year. People continue to overpay and outbid each other for homes. The competitive market continues to yield higher price increases each year. True Story: It’s Sunday afternoon, and homes are on display for sale (typical open house day). We go to the only available open houses in an area our client really likes. (By the way, there were only three homes for sale in the entire neighborhood). Upon arrival, twenty other buyers are there with their agents looking to buy as well. The seller is reviewing all the offers (being submitted by buyers) on Tuesday. Tuesday rolls around and here’s what happens: Each home seller had selected one offer from a different buyer (one offer was ours). The buyers whose offers were selected won because they were able to: Pay higher than the listing price. Had cash to make up the difference between the loan amount and the overpaid price. Had cash to make up the difference if the appraised value came in lower than the offer. The following Sunday rolls around and can you guess what happens next? Two more new listings are put up on the market in the same area as last week. The remaining buyers (who didn’t win last week) show up. There are also new additional buyers (one of them now working with us) who have their pre-approvals in hand… And the competition starts again. Imagine: If you were the buyer going on a second, third, fourth, round of this each week. “For some buyers it takes months.” Unfortunately, this is what many first-time home buyers face in Hawaii. Regardless of how much additional cash you have, we have strategies that can help to beat out the competition. That is why it is so important to obtain your pre-approval first… …And then strategize with us so we can get you into a home and either beat out or go around the competition. Property Viewings: You now have the pre-approval in hand and we identified a comfortable monthly mortgage payment and price point. We’re ready to view homes for sale in Hawaii! Here’s a list of what we’ll need from you: Anyone who will be on the title of the home with you and their contact info. The areas you’re interested in. Your preferred property requirements (number of beds, baths, parking, etc.). The days you are available to see properties. From there, we’ll send you a list of properties that fit your criteria directly to your smartphone and or email. Once you’ve identified homes on the list that you’re interested in, we’ll set up showings based on convenient times for you and the seller. Offer Price Strategy: Moving On: We viewed properties, and you narrowed it down. You found a property you want, and now it’s time to strategize the offer price. Here’s How We’ll Do it: The way we’ll determine our offer price when identifying the right Homes for Sale in Hawaii is through generating a CMA (comparable market analysis). The CMA compares previous properties that sold on the market, in the most recent time, that is most comparable to the exterior and interior likeness to the subject property. Remember: When buying homes for sale in Hawaii, the offer prices can also be determined by competition. We have ways around this, but we want to avoid competition (if possible) so you don’t end up paying more than you have to. After identifying an offer price, you’ll sign the purchase contract, and we will submit it for the seller to review. Opening Escrow: Great News: Your offer was accepted… As a result, the escrow process begins! You may have heard of escrow and may be wondering, “who is escrow and what exactly does escrow do?” Think of escrow as a central hub, where the bulk of the transaction is facilitated.” Keep in mind: “Our collaborative teamwork and experience will guide you through this process.” Here is a list of responsibilities escrow monitors and manages: Watches the timelines within the purchase contract. Collects all money deposits until it’s time to make disbursements. Collects paperwork from buyer, seller, professional inspectors. Changes names on the title of the property. Updates the land court and bureau of conveyances of new title owner. Keeps a record of all paperwork. Oversees all parts of the transaction from start to finish. Escrow essentially manages the entire transaction, but we (you and us) will manage everything required of you on the buyer side as well. Keys To Your Home In Hawaii: You Made, Congratulations! The process typically takes 45 days or less when buying homes for sale in Hawaii. You’ll “learn more about the intricacies of the timeline contingencies” once you schedule an appointment with us. For now, here are four contingencies that’ll occur just before getting your keys: You’ll conduct a final walk-through inspection on the property. Sign your name onto the title. Escrow records the property title at the Bureau of Conveyance and or the Land Court. We’ll hand deliver the keys to your home! It’s that simple. We look forward to the day we get the excellent opportunity to “hand you the keys to your first home!” Exceptional Value In Choosing Us: The Bottom Line: When it comes to buying homes for sale in Hawaii, we are always here to help you. We are always committed to “your real estate goals, interests, and dreams.” Furthermore, we can provide you with the education and service you need so that you can build a high level of confidence and understanding of the home ownership process. Let’s create and share a valuable experience of your first getting home together! Act now: “Sign up below” and schedule an appointment with us today to view Homes for Sale in Hawaii. We look forward to you getting your first home! “Thank you for reading this post.”
The VA Home Loan Benefit 10 Things to Know!
August 19, 2018
The VA Home Loan Benefit 10 Things to Know!
The VA Home Loan Benefit 10 Things Veterans Should Know! Helping our veterans and service members with their VA Home Loan benefit is a daily mission for us. When it comes to our active military members and veteran buyers it is always an honor to serve those who have served us. Don’t you think you should own a piece of the soil that you’ve protected? Yet, less than a decade ago (in 2012) a statistical report from the VA showed that less than 15% of VA eligible buyers had taken advantage of their VA home loan benefit. Above all, we believe the major reason why there is a very small amount of VA eligible buyers is due to the lack of education veterans receive while in service and the minimal information received from the VA upon exiting the military. When compared to Conventional, FHA, and Loans… …Hands down, the VA home loan benefit is the best possible loan you can obtain for your mortgage. Furthermore, when it comes to VA eligible buyers (active military and veterans) the VA said that 8 out of 10 buyers could not have qualified for a conventional loan. For these reasons, we wrote this article so you can get educated about: “The VA Home Loan Benefit: 10 Things For You to Know About” Let’s get started! VA Home Loan Benefit 1: Does Not Require A Down Payment Occasionally, we’ll find out from our military and or veteran buyers that they are under the misconception of being required to put down money when using the VA home loan benefit. You’ll Be Glad to Know: That this is far from the truth. VA eligible buyers receive 100% financing for the purchase of their owner-occupied home. In Hawaii, the City and County of Honolulu’s loan limit allow for an eligible VA buyer to make purchases of up to $721,050.00 for this year. You’ll still have to qualify with your lender to see what you can borrow but that’s a lot considering your VA home loan benefit has as little as $0 for down payment! There are VA Jumbo loans that can go over a million as well, but the requirements are different. If you want to know more about the VA Jumbo loan feel free to reach out to us anytime by calling or scheduling an appointment with us. In Contrast to Other Loans Down Payment Requirements: FHA (Federal Housing Administration) Loan= minimum of 3.5% down Conventional Loan= minimum of 3% down If you want a free mortgage calculator for your VA Home Loan Benefit read our article here: http://blog.chime.me/www-hawaiipropertyfinder-com/your-mortgage-calculator/ VA Home Loan Benefit 2: No Private Mortgage Insurance (PMI) One of the best incentives for using your VA home loan benefit is that there is no PMI (private mortgage insurance). You may be wondering “What is PMI (private mortgage insurance)?“ Simply Put: PMI (private mortgage insurance) is insurance that is paid by you against yourself in the event you were to default on their own mortgage. To give you a rough idea of what PMI will cost you: For every $100,000 a buyer borrows for their mortgage at a 4.5% interest rate on a 30-year term, he or she will pay around $80 for private mortgage insurance. Here’s how it works: When a buyer uses the conventional and FHA loans they must put 20% of the purchase price as a down payment on the loan or they will receive PMI (private mortgage insurance). As explained above, you can certainly put down as low as 3% down for the conventional loan and 3.5% down for the FHA loan… …But if you do not put down 20% for these types of loans you will receive PMI (private mortgage insurance) payments as well. Up front, the mortgage loan balance needs to be at 80% and the equity in the home needs to be 20% or higher to avoid PMI (private mortgage insurance). Here’s the crazy part: If you cannot afford to put down 20% on the conventional or FHA loans up front, the banks will require you to wait to take the PMI (private mortgage insurance) off, until your loan balance is down to 78% (instead of 80%) to have it taken off… …And once you do pay down the balance to 78%, you have to actually call the bank and make the request to remove the PMI (private mortgage insurance). The bank will not normally do this for you automatically. It Gets Better For You Though: For the Va home loan benefit, not only is there no down payment, but there’s no PMI (private mortgage insurance either). This makes home ownership much easier for the VA eligible buyer! If you want to see a BAH calculator and learn what you’ll really make here in Hawaii click here: http://blog.chime.me/www-hawaiipropertyfinder-com/bah-calculator-hawaii-what-you-really-make/ VA Home Loan Benefit 3: Non-Allowable Closing Costs Not only is the VA home loan benefit best in quality, and can be obtained in a timely manner, but it also has lower costs. If an eligible VA buyer chooses to pay for costs at closing and or a seller does not want to pay those closing costs, the VA home loan benefit decreases the number of costs owed by the buyer at closing. Here is a list to ask your VA Home loan mortgage professional about: Attorney fees that extend beyond interest rate lock Tax service fees Loan paper preparing Settlement fees Document preparing fees Conveyance fees Loan closing Loan broker fees When using other conventional loans, a buyer has to pay these fees… …But for the VA eligible buyer, they are considered to be non-allowable and you will not be required to pay them. Ask your VA mortgage professional about how helping you with costs as well because they will usually cover the non-allowable closing costs, but again, you’ll need to verify with them about it. Also, we can refer many VA mortgage professionals that we trust and know will help you with your VA home loan benefit. Remember to reach out to us when you’re finished reading this article. VA Home Loan Benefit 4: No Pre-Payment Penalty There are a variety of ways homeowners can take advantage of paying off their mortgages faster than 30 years. By paying off your mortgage faster than 30 years you can save tens of thousands of dollars in interest payments. Did You Know: Many other loan types (conventional, FHA, etc.) can have pre-payment penalties. Meaning if you try to pay the loan off early the bank will charge you a penalty fee because they know you’re not paying the full amount of interest in the time a conventional loan was originally established (30-years). Reason for it: The banks want to collect some of that interest before you part ways and become mortgage free… …And that’s why they created pre-payment penalties in the first place. News Flash: The VA home loan benefit eliminates pre-payment penalties all together! If your buying your first home soon read more about the homeownership process here: http://blog.chime.me/www-hawaiipropertyfinder-com/a-step-by-step-guide-homes-for-sale-hawaii/ VA Home Loan Benefit 5: Can Have Lower Interest Rates On average, the VA home loan benefit has lower interest rates than other conventional loans. Check with your lender, but from our experience, the VA home loan benefit can be about a half of a point to a whole point (0.5% to 1%) lower than the other conventional loans. Here’s the Great News: On a conventional loan, if you don’t have the best credit or a huge down payment, the buyer is usually penalized by having to take a higher interest rate. However, the VA home loan benefit is set up to protect the buyer so they don’t over-leverage themselves. Note: The VA eligible buyer can also buy down their interest rate as well. It will cost an additional out of pocket expense, but knowing this allows for a lower monthly payment if it makes sense at that time. You can talk to one of our mortgage professionals to learn more. VA Home Loan Benefit 6: Assumable VA Home Loan Did You Know? Eligible VA Home Loan benefit users can take advantage of assuming other users interest rates. For Example: Suppose you are buying a home for $500,000 from a seller who has a VA home loan mortgage. Let’s say that today’s interest rates are around 4.5%. If you took the loan on the $500,000 with today’s rate of 4.5%, your current mortgage payment would be around $2,500. Next: Using the same example above, let’s say the seller’s current VA home loan mortgage rate (that the seller received when they purchased) on the home your buying from the seller was 3.5%. If the seller is willing to do it, the seller can let you assume the same mortgage interest rate and now your mortgage payment will only be around $2,250, which would save you around $150 every month. What You Should Know: In this situation, you could be the seller as well… …And what you should know is if a seller allows another eligible VA borrower assume the seller’s lower mortgage interest rate… …The seller will not be entitled to use their VA home loan again until the buyer (new owner) pays off the mortgage so that the money is given back to the seller’s entitlement amount. However, the seller can ask the buyer for a higher purchase price in return. For the buyer, having a lower interest rate can potentially save tens of thousands of dollars over a 30-year mortgage loan term. VA Home Loan Benefit 7: Can Have Funding Fees Waived As you’re now aware, costs are usually lower than other loan types. However, the VA home loan benefit does charge a funding fee. The VA Funding Fee works out like this: A funding fee of 2.15% of the loan amount (with no money down) is applied on the very first time the VA home loans benefit is used. If the VA eligible buyer puts down 10% the fee is cut in half to 1.25% instead. On all subsequent home purchases, meaning second, third, fourth, etc. using the VA home loan benefit, there is a 3.3% funding fee charged on the loan amount. Here’s the catch: If you have a 10% disability rating from the VA (or higher) the VA funding fee is waived. You will need to show your mortgage professional the supporting documentation to prove you are eligible to have the funding fee waived. VA Home Loan Benefit 8: Use Multiple Times Many VA eligible buyers Ask Us this Question: “Can I buy another home with my VA home loan?” Answer: “Of Course, You Can!” As long as the VA mortgage is paid back you can continuously use the VA home loan benefit. Here are four ways you can pay the VA mortgage loan off to buy another home: Sell your home and once you receive the money in escrow, and pay back the VA mortgage, you can use it again. Pay off your mortgage in time and buy another. You refinance your home with a different loan type, and once the new loan pays off the VA loan you can buy another property. If you haven’t maxed your county limit usage, and you qualify with the lender to borrow again, you can buy a home after one year of living in your current home. The VA home loan benefit makes it easy for you to buy multiple homes! Also, you can learn about why Oahu has some of the most expensive real estate in the nation… …And you can take advantage of what’s on the market with your VA Home Loan Benefit by clicking below: http://blog.chime.me/www-hawaiipropertyfinder-com/homes-for-sale-oahu/ VA Home Loan Benefit 9: Guaranteed By The Government One of the primary reasons behind why the VA home loan benefit is such a good loan: Is because of the fact that it is backed by the government. What does this mean? The government generally guarantees up to 25% of the VA home loan in the event you defaulted on your loan. The VA home loan benefit is guaranteed in the amount of up to, but not to exceed $417,000… …In the event, you were to default on your VA home loan benefit. Formula: $417,000 multiplied by 25% = $104,250 Most Noteworthy: This is another reason why the VA home loan benefit has awesome incentives in comparison to other loan types. In comparison, that’s why the requirements are not as strict. Therefore: We know you’ll probably agree with us that it’s best to use this loan if you’re a VA eligible buyer! VA Home Loan Benefit 10: Use To Pay Off Debts “Bringing debts to a zero balance, by wrapping the debts into your mortgage, having lower payments, while buying a home?” Yes, that’s correct! Did you know? That when using a VA Home Loan: You can use up to 4% of the total purchase price on a home to pay down any of your debts. Here’s an Example: You have $16,000 worth of debt (car, loan, and credit card, etc.) and you’re approved for $450,000 You buy a home for $400,000. 4% of $400,000 is $16,000. The offer price on the home will be $416,000 ($400,000 for the home and $16,000 for the debt) and the seller will credit you back $16,000 in escrow for your debts. The new balance on the mortgage at that point would $416,000… …But now you paid off your debts! On a 30-year mortgage, your payments on the $16,000 will be much lower. Exceptional Value You Can Rely On: The Bottom Line: We will accomplish the mission with you! In using your VA Home Loan Benefit, know that you can always rely on us to help you! Thank you for your service to our country… …Now it’s our turn to serve you! Here’s A Bonus: We are certified Military Relocation Professionals! Above all, you should “Sign Up Below” and schedule an appointment with us today. We look forward to serving you with all of your VA Home Loan Benefit Needs! “Thank you for reading this post.”