Take Part of the VA Loan Program
Are You Eligible For a VA Loan?
The Certificate of Eligibility (COE) verifies to the lender that you are eligible for a VA-backed loan. The evidence needed depends on the nature of your eligibility.
What's Your VA Loan Allowance?
Your Basic Allowance for Housing (BAH) is a U.S. based allowance that provides Service members fair housing compensation. It's determined by geographic duty location, pay grade and dependency status.
VA Loan Features
- No down payment for VA loans up to $1,500,000 for veterans with full entitlement in Hawaii
- VA funding fee may be financed
- No monthly mortgage insurance
- Purchase, Cash-Out Refinance or Interest Rate Reduction Refinance Loans (IRRRL) available
- Experienced Residential Loan Officers assist you every step of the way
PROGRAMS AND RESOURCES
The VA mortgage program works by pairing a financial institution, such as ASB, with the VA. The VA then guarantees a portion of the mortgage taken out by an eligible veteran. The loan itself is similar to a conventional mortgage and can be used to purchase or refinance a home at a fixed rate. In fact, by being backed by the government, VA mortgage rates tend to be lower and loan terms are generally favorable to other loan programs.
Unlike conventional loan programs, a VA loan often does not require a down payment. With little to no down payment requirements, a VA mortgage can be a great way for an eligible veteran to purchase a first home. You can even use a VA home loan for the entire purchase price of your qualified Hawaii home purchase.
In addition to mortgages for purchasing a home, VA loans can be used for refinancing a current home. A VA loan refinance allows you to potentially take advantage of lower interest rates and a change the term of your VA loan. You may also be eligible for a cash-out refinance of your current home through the VA loan program. Cash-out refinances of VA loans allow you to refinance your current mortgage and receive a check at closing.
While VA mortgage loans offer many benefits to home buyers, not everyone or every property is eligible. To be eligible for the VA loan program, you must be a U.S. veteran or reservist. A surviving spouse of a U.S. military member may also qualify for a VA loan. In addition to these base qualifications, other requirements of eligibility and entitlement must be met to qualify.
The home or property you intend to purchase must also meet certain eligibility requirements. For an ASB VA mortgage, your property must be a one-unit single owner/occupant in the State of Hawaii or a single family dwelling (SFD). Certain single unit condominiums may be eligible as well, if they are approved by the VA.
As with any mortgage, the first step before you purchase your dream home with a VA home loan is to understand how much you can afford. Speak with an experienced ASB Loan Officer to discover if you're eligible for a VA loan. Together we'll look at your current income and savings to find the right VA mortgage terms for your dream home in Hawaii.
VA loans have many benefits for eligible veterans. With a few restrictions, VA loans don’t require a down payment. Most other types of home loans require at least a 5% down payment, and even some first-time home buyer loans require at least 3.0% down. Additionally, VA loans don’t require monthly mortgage insurance. Almost all other loans require homeowners who put down less than 20% of their home purchase to pay a private mortgage insurance premium each month. In fact, in some cases, since there is no down payment requirement, a VA loan can be for the entire amount of a home purchase.
APR stands for “Annual Percentage Rate” and represents the price you pay to borrow money. APR is a broader measure than interest rate because it includes the interest rate plus other costs such as lender fees, closing costs and insurance. You can use APR to compare loans offered by different lenders when shopping for a mortgage loan.
For example, based on a purchase price of $500,000; loan amount of $400,000 (20% down payment; 80% loan-to-value); interest rate of 4.00% and 1.00% points, the monthly principal and interest payment on a 30-year fixed rate mortgage would be $1,909.66 and an APR of 4.119%. Keep in mind your mortgage loan monthly payment will be higher as lenders typically include proerpty tax and insurance costs.
There are a few items you must consider before applying for a mortgage loan. We recommend that you have a good understanding of how much you want to borrow, what your credit score is, and that your financial information is readily available.
We typically ask for a recent Leave and Earnings Statement (LES) or two recent paystubs as well as other documents to verify the information that you provide to us. Every situation is different, so please contact a loan officer today.
Getting pre-qualified is highly recommended since many sellers require a pre-qualification letter from a reputable lender. Plus, during the pre-qualification process your ASB Loan Officer will help you determine the appropriate price range before you go house hunting.
- Loan programs and products are subject to loan qualification, credit policy and underwriting standards for the respective program or product. Certain terms, conditions and restrictions may apply. Programs/products subject to change or discontinuation without notice.
- For VA loans, there is a VA funding fee which will vary based on the type of loan and down payment amount, if any. This funding fee may be financed or paid by the borrower at loan closing; and, it is a percentage of the loan amount. Based on a purchase price of $400,000 with a funding fee of 2.30%, the loan amount is $409,200 which is 100% of the purchase price (no down payment on the home purchase) plus the funding fee.
Department of Veterans Affairs Certificate of Eligibility required. Other terms and restrictions may apply.