Conventional
Traditional loan programs that usually require 5% down and offer competitive interest rates. Documentation and fair-to-good credit are necessary.
FHA Mortgages
Backed by the Department of Housing and Urban Development, these mortgages offer the borrower the ability to put as little as 3% down payment – and they can even finance “allowable” closing costs. Seller can contribute up to 6% of the purchase price to the buyer towards closing costs. The most common FHA mortgage is also known as an FHB B loan. A FHA 203K loan, or rehabilitation loan is a loan program that enables a homebuyer to finance up to 96.5% of the purchase price plus the cost to renovate the house and cure it of all its deficiencies for up to the maximum FHA conforming loan limits for each county. In the county of Maui, that magic number is $625,500. There is no max cap on the cost of renovation as long as your loan stays within those loan limits and you can practically build a new house with this program as long as you use a portion of its original foundation. The nickname for the FHA 203K loan has become the “K” loan. This distinguishes it from the FHA 203-B loan that is used to finance a regular house without any deficiencies, now nick-named the “B” loan.
The FHA 203K although complex, is not at all difficult. Start with a Feasibility Study Report prepared by the FHA 203-K Hud Consultant for a mere cost of $275. Maui’s only 203K Hud Consultant on island, is Doug Heisserman.
Investor Loans
Used to finance 1-4 family properties that will be for investment with as little as a 10% down payment. Aggressively priced, these programs have many variations, including: No Doc, Limited Doc, and Full Doc. Program may not be available in some states.
Land Loans
Most lenders who write land loans require 40% down, with a 3-year term. Usually these loans are interest only.
Construction Loans
Building a new home can be an exciting prospect – unless you get caught up in a construction loan approval process that is overly complicated and time consuming. With this loan, we will finance up to 90% of the cost of land plus the costs of construction. Some lenders offer a one-time fixed rate closing or traditional ARM products.
High Debt Ratio Loans
A ratio of monthly bills to monthly income higher than 50% is considered a high debt ratio. Loan programs are available for borrowers in this situation, allowing them to finance the purchase of a home or property.
Challenged Credit Loans
These mortgages are for borrowers with less-than-perfect credit. They can vary from slightly damaged credit to severely damaged. Regardless of your situation, there are mortgages that will get you back on track.
Jumbo Loans
Offers 30 and 15 year fixed rate mortgage and competitive ARM products with full document, alternate documentation and limited documentation. Cash out and No cash out refinance are allowable. Single family detached, Condo’s, PUD’s and single-family second homes can be financed with no prepayment penalty.
80/15/5
This is a loan which carries a second mortgage for up to 15% of the purchase price of the property. It is usually used when wishing to avoid PMI insurance or to keep your first mortgage under the FNMA/FHLMC limit to avoid Jumbo rates. The borrower puts down a 5% down payment and then finances a first mortgage up to the FNMA/FHLMC limit and a second mortgage of up to 15% of the purchase price. Other variations are 80/10/10 or 75/15/5.
Credit Problems
Troubled credit? Bankruptcy? Been turned down? There are loan programs for customers with credit problems.
VA Mortgages
Backed by the Veterans Administration and the federal government, it is similar to FHA except that you have to be a qualified Veteran or military person.
Contact Info: 100% financing with VA and USDA loans!
Sharon Robinson, Guild Mortgage
Phone: (808) 633-6696
srobinson@guildmortgage.net
380 Huku Li’i Street, Suite 201
Kihei, HI 96753
Al Alfonzo – American Savings Bank
Phone: (808) 344-8439
oalfonzo@asbhawaii.com
ALOHA MORTGAGE LOANS
Kelly Henning – Senior Loan Consultant
Located at Kihei Plaza
1325 S. Kihei Rd. #213
Office: (808) 874-7008
Fax: (888) 809-8261
Cell: (808) 344-8944
maui.loans@hotmail.com
www.loans4hawaii.com
FHA Monthly Mortgage Insurance goes up
Contact Info: 100% Financing with the USDA Program
The 100% financing Rural Development (USDA) program has been a successful tool in getting houses sold. Some of the benefits are:
- Provides 100% loan-to-value financing for existing homes or new construction based on appraised value.
- Available to low and moderate income rural households
- No requirement to be ‘first time’ home buyers
- Less up-front cash to close requirements for this program than for conventionally insured or FHA loans
- No maximum loan limit. Loan limits are dictated by the applicant’s income with respect to program eligibility and loan repayment ability.
- Previous ties to FHA loan limits have been eliminated.
If you have any questions or would like to talk to a consultant about a loan, please call us at (808) 874-7008.
First Hawaiian Mortgage (Fran Peart Mitsumura)
Phone: (808) 661-8886
Fax: (808) 661-8099
Email: fhmlah@aol.com
910 Honoapiilani Hwy, Suite 2 –
Lahaina, HI 96761 – West Maui Center
Toll-Free: 1-800-599-6284
www.firsthawaiianmortgage.com
Lorrie A. Onaga – First Hawaiian Bank, Maui Region (a Portfolio lender)
20 West Kaahumanu Avenue
Kahului, Hawaii 96732
Direct Phone: (808) 873-2266
Cell Phone: (808) 280-0630
Fax: (808) 873-2251
Email: lonaga@fhb.com
www.fhb/mortgage.com
