Buying a Home in Hawaii: A Guide for Veterans
I recently bought my first dream home in Kaka'ako, a vibrant area known for its stunning street art and proximity to the Ward area. I closed the deal at 27, proving that homeownership at a young age is possible, even in Hawaii.
One key resource for first-time buyers in Hawaii is the state's First Home Buyers Program. This program provides financial assistance to individuals who have never purchased property before, offering homes at below-market prices with the option to repay additional costs later when financially stable.
Eligibility for Hawaii's First Home Buyers Program
To qualify for the program, you must meet certain criteria:
Residency: You must be a resident of the State of Hawaii.
First-Time Buyer: You should not have previously purchased a home.
Income Limitation: Your income must fall within certain limits, typically a percentage of the Area Median Income (AMI), which varies by project.
Key Entities: HHFDC and HDCC
Hawaii has two primary entities facilitating these opportunities:
Hawaii Housing Finance and Development Corporation (HHFDC)
Hawaii Community Development Authority (HCDA)
Both organizations help prospective buyers access affordable housing, but the specific terms and conditions can vary.
Understanding AMI and Income Limits
Let’s say the AMI for Honolulu is approximately $140,000 for a family of four. Income limitations for purchasing a unit often vary by project. For example, if a project has an income limit of 120% of AMI, then for a family of four, the maximum allowable income would be 1.2 times $140,000, which equals $168,000.
My Experience and Advice
From my personal experience, if you plan to live in Hawaii for more than 10 years and have saved enough for a down payment, I highly recommend pursuing this opportunity. I purchased my property for $583,100, and by the time I closed, its value was nearly $800,000.
However, it's important to note that you cannot use a VA home loan for most first-time buyer programs in Hawaii. These programs typically involve newly constructed properties, and VA loan qualifications require that the majority of the development's tenants use their homes as primary residences, which cannot always be guaranteed at closing.
Refinancing with a VA Loan
If you initially finance your purchase with a different type of loan, you can refinance with a VA loan typically after a six-month period of residence. This can provide better terms and take advantage of the benefits VA loans offer.
For more details, you can visit the official websites of the Hawaii Housing Finance and Development Corporation (HHFDC) and the Hawaii Community Development Authority (HCDA).
Homeownership in Hawaii is attainable with the right resources and planning. By leveraging state programs and understanding the available benefits, veterans can successfully navigate the path to owning a home in this beautiful state.
