Hawaii Mortgage Guide to Affordable Loans

Finding a Hawaii mortgage that?s right for you just got easier.? This simple to use guide will provide an overview of various mortgage programs currently available.? Knowing your choices before applying for a Hawaii mortgage will ensure you don?t miss out on loan programs you may be eligible for.

We all know there are a wide variety of conventional loans available, all with different terms, rates and guidelines.? What most people don?t consider are the state and federal programs that are available to Hawaii residents that offer low mortgage rates.? Maybe it?s because they aren?t aware of them, or perhaps think they don?t qualify for them.? The programs outlined here, among others, are worth taking a look at; they can save you a substantial amount of time and money.

Zero Money Down Mortgages

There are two.? The first is the VA loan which provides home financing to eligible veterans where private financing is not generally available; it also helps veterans purchase properties with no down payment.? VA loans allow 100% financing without private mortgage insurance (PMI) or without a 20% second mortgage.? Since there isn?t a monthly PMI, more of the mortgage payment goes directly towards qualifying for the loan amount, this allows for larger loans with the same payment.? These loans allow for the seller to pay all of the veteran?s closing costs too, as long as the costs do not exceed 6% of the sales price.? The second type loan is the USDA Rural 100%, designed for financing homes in rural areas of Hawaii approved for the program. Maui properties are prime candidates for this program, with the exception of Wailuku and Kahului that are excluded, all other areas of the island qualify.? USDA Rural 100 provides: 100% loan to value financing for existing homes or new construction based on appraisal value; available to low and middle income rural households; you do not have to be a ?first time? home buyer; this program allows for the seller to contribute towards closing costs.

HomePath Mortgage and the Benefits

Available from Fannie Mae for borrowers who purchase a Fannie Mae owned home. Homes owned by Fannie Mae due to foreclosure, forfeit or deed-in-lieu of foreclosure are eligible for a HomePath Hawaii mortgage.? HomePath mortgages are to assist the buyer in purchasing these homes direct from Fannie Mae.?? They require a minimum of 3% down payment but this can be from the borrowers own funds, a gift, grant, loan from an employer, state or local government housing program or a nonprofit organization.? This type of mortgage doesn?t require an appraisal fee or mortgage insurance (PMI).? Another benefit is that the borrower does not have to live in the home (meaning it doesn?t have to be the borrower?s residence); it can be an investment property that they can rent out.? Many properties in Hawaii and Maui qualify for this type of Hawaii mortgage.

FHA Mortgage Programs for Purchase or Mortgage Refinance

There are various FHA mortgages available with very competitive interest rates.? FHA mortgages require a down payment as low as 3.5% of the purchase price; most closing costs and fees can be included in the loan; loans available for 1 to 4 unit properties.? FHA provides loans for buyers purchasing a home and for homeowners wanting to refinance.

With so many more mortgage loans available, it?s difficult to determine which fits your situation best.? At mortgage.org we?ve helped thousands of people find their Hawaii mortgage, contact us today and let us help you find the perfect mortgage too!