In 2013 more than 5,000 families in Hawaii used the VA Home Loan to purchase a home in the islands. These are excellent numbers, and the Hawaii VA Loan has been great for many families. However, with the VA recently dropping the Hawaii VA Loan limit down to $625,500, this puts many veterans in a bind, as that max number is $60,000 below the median price for a single-family home in Hawaii.
“With a loan product that doesn’t facilitate the average median home price, you’re limiting veterans in being able to move into their own homes and further their families lives,” Corey Cazares said.
“It doesn’t seem right. There’s something amiss,” Amanda Cazares said.
The guaranty limit is a benefit earned by soldiers who serve and sacrifice. It also helps surviving spouses buy a home. The decrease has many veterans on the doorstep of despair.
“For veterans who are trying to purchase a home or doing their best to refinance a home this is very devastating news for them,” state Office of Veteran Services director Ronald Han said.
Reasons for Loan Cuts?
Perhaps the hardest part of this (besides the obvious) is the fact that Washington gave no reason for the severe cut to Honolulu’s loan limit. Hawaii’s congressional delegation wants Veterans Affairs secretary Eric Shinseki to recalculate and restore the higher guaranty.
“I don’t know too many veterans running around with $116,000. That’s what our down payment is going to be with the new VA loan,” Corey Cazares said.
The cut to Hawaii VA Loan limits is even more puzzling when you take into account that guaranty limits went up in other parts of the country where home prices are equal to Honolulu’s.
The truth is there are not many veterans walking around with and extra $116,000 in their packets to put down and help purchase a single-family home in Hawaii.
We will see how this plays out and see if the VA Loan limits for Hawaii go back up. There are still options available. Contact Tiare Fullerton now to go over them and see what you can still get done while we wait to see how the VA Loan limit situation plays out. Here is more about what happened.