Buying a home in Hawaii is expensive.

But not buying is even more expensive.

Why? Because when you own a home, over a long period of time your mortgage payments are generally more than offset by two factors:

1.) Appreciating home values
2.) Steadily increasing rents

20 years ago, the average rent was around $450. Now it costs $1,000 to rent a dwelling*.

Meanwhile, the monthly mortgage payments of landlords who decided to buy in 1998 or earlier has stayed the same, or even declined, thanks to the effects of refinancing. And the amount of equity they’re able to build in their homes each year has increased substantially, again due to two factors:

1.) Increasing home prices. – even accounting for some drastic losses in 2008-2010, and;
2.) Amortization. As mortgage principal is paid down, even if the value of the home stays flat, every payment builds more and more equity in the home.

At the same time, while renters are paying all their rents into the landlord’s pocket, even landlord expenses are ultimately going back into landlord pockets, in the long run. Repair and maintenance costs are stored in the value of the home, indirectly. Owners get it back when they sell a home that’s been well-maintained.

And they get favorable tax treatment in the process.


“Ke lino a nei ke k?hau o Waiopua.”

“He glistens with the fine dew of a pleasant breeze.”

– Said of a man who was once poor, but who has become wealthy.

But lots of renters today are in a position to buy, or at least much closer to being able to buy than they realize!

Here’s why: According to the survey linked here, 44 percent of renters surveyed say their biggest obstacle to buying is that they haven’t saved enough money for a down payment.

But half of these renters – 49% – say they believe they need 20% to put down up front in order to buy a home. Another 24% say they think they need a “perfect credit score.”

Both are myths!

And these major misconceptions are holding many people from realizing the dream of homeownership.

In fact, you don’t need 20 percent up front to own. a home. Many of you won’t even need half that.

Here’s why: We process FHA and VA loans every day. All you need is a 3.5% down payment for an FHA loan (and you can get help from family members or employers even with that requirement), and nothing down for a VA mortgage, if you qualify.
Homeownership may be closer than you think.

To start the process, start gathering these documents, and call Pacific Home Loans today, at (808) 891-0415, or fill out our online application.

We look forward to serving you.


*Read the entire United States Census Bureau report here.