Buying a Home in Hawaii
More Options, More Choice, More Happy Homebuyers!
As a mortgage banker and broker, Pacific Home Loans provides a unique advantage as both a direct lender and a broker to numerous banks. This dual role expands your options and enhances the likelihood of turning your dream of homeownership in Hawaii into a reality.
Mortgage Banker: Pacific Home Loans can facilitate Hawaii home loans directly, often leading to significant cost savings and expedited loan processing times.
Mortgage Broker: Benefit from Pacific Home Loans’ extensive portfolio of financing partners, giving us the ability to offer the best loan program tailored to your specific needs.
Property Classifications Unique to Hawaii
Ohana: In Hawaii, many homes come equipped with an attached or detached accessory dwelling unit known as an Ohana. When assessing loan qualifications, a single-family residence with an Ohana is considered a 1-unit home, providing you with distinct options for financing.
CPR (Condo Project Regime): Encountering a CPR property? No problem! Pacific Home Loans specializes in CPR financing. CPR properties typically consist of two or more units, such as a main house and an Ohana, each with separate addresses resulting from the CPR process. Our financing solutions for CPR properties, available through residential home loans, come with competitive rates. It’s important to note that while PHL categorizes CPRs appropriately, some lenders may consider them condominiums, leading to higher interest rates. For any questions related to CPR properties, feel free to reach out to us; we’re dedicated to assisting you in navigating this unique process.
Loan Limits and High-Cost Area
Hawaii Loan Limits: In high-cost areas like Hawaii, where the cost of living and real estate prices tend to be elevated, the FHFA establishes higher loan limits to reflect the unique economic landscape. These higher limits are designed to ensure that residents in such areas have access to financing options that align with the local housing market realities.
Determining Loan Limits: The FHFA uses a set formula to determine loan limits that consider the median home prices in a particular area. For high-cost areas, including certain regions in Hawaii, these loan limits exceed the standard limits applied to most other parts of the country.
Click Here to review our Loan Programs page for a complete list of loan limits for Hawaii.
Implications for Homebuyers: For homebuyers in Hawaii, the higher loan limits mean they may qualify for larger loan amounts, making it easier to finance homes in markets where property values are notably higher. This can be especially beneficial in areas where traditional loan limits might fall short of covering the cost of homes.
Benefits of High-Cost Area Loan Limits:
- Increased Access to Financing: Higher loan limits facilitate increased access to mortgage financing, enabling homebuyers to consider a broader range of properties.
- Support for Local Housing Markets: By adjusting loan limits based on the unique characteristics of high-cost areas, the FHFA aims to support the stability and growth of local housing markets.
- Reflecting Economic Realities: Loan limits that align with the cost of living and housing in high-cost areas acknowledge the economic realities of these regions, providing a more accurate representation of the financial landscape.
Homebuyers in high-cost areas, including Hawaii, can benefit from understanding how these adjusted loan limits work and how they contribute to a more flexible and accommodating mortgage market. As always, consulting with a knowledgeable mortgage professional can provide personalized insights based on individual circumstances.
