Honolulu, HI Conventional loans for relocating employees
Benefits of a Honolulu, HI Conventional Loan
Conventional financing offers lower costs and competitive rates. Down payments vary by product but are offered as low as 3%-5% for qualifying borrowers. A variety of terms with fixed or adjustable rates are available. If you have good credit and a down payment, you can take advantage of some great options with a conventional loan.
Honolulu, HI specific requirements
Wood Destroying Insects - Wood Destroying Insect Inspections are required on all existing residential properties, including condominium projects that are 5 stories or less in height, due to the high probability of termite infestation in the area. The State of Hawaii mandates that Wood Destroying Insect Inspections be reported on a State Prescribed PC-9 Form which is valid for 15 days. For the purposes of closing the loan, the VA considers the Wood Destroying Insect Inspection and the PC-9 Form to be valid for 90 days. This 90 validity period only applies to closing a loan for VA Lending Purposes; it does not extend the warranty that the property is free from wood destroying insects to 90 days.
Heating Systems - Hawaii is a tropical climate and heating and/or cooling systems are not required to meet VA minimum Property Requirements for VA Lending purposes.
Leasehold Estates - A copy of the lease must accompany the appraisal request. The terms of the lease must be approved by the VACO/NPG prior to commencement of the appraisal assignment. The total Lease Term must exceed the Mortgage Term by 14 years and the Mortgage Term must not exceed the Fixed Rent Period of the Lease.
Water Catchment Systems - Please refer to VBA Circular 26-14-4, dated 2/19/2014, and renewed by VBA Circular 26-14-4 Change 1, dated 1/8/2016, Clarification of the Department of Veterans Affairs (VA) Acceptance of Water Catchment Systems in the State of Hawaii. The Circular may be found at: https://benefits.va.gov/homeloans/documents/circulars/26_14_4.pdf
Cesspools - Existing cesspools may be acceptable for VA Lending Purposes if the following conditions are met:
Lender must verify with the State of Hawaii, Department of Health, Wastewater Branch that the cesspool was properly permitted when installed. The Wastewater Branch keeps and can provide a copy of the Cesspool Registration Card. This Card must be kept in the Lender's loan file.
The cesspool must be tested/recertified in the following circumstances:
a. There has been an enforcement action due to a failure of the system.
b. The Appraiser notes obvious signs of failure of the cesspool during the inspection of the subject property.
c. There has been significant building modification (additions to the home, not remodeling) that increases either the living area or number of fixtures disposing waste water into the cesspool.
d. The cesspool is located in the groundwater table.
If one or more of the conditions listed under Item #2 apply, Lenders are responsible to order cesspool testing by a specialist acceptable to the Department of Health.
a. Should the cesspool require testing, the NOV must be conditioned in Block 5. WATER/SEWAGE SYSTEM ACCEPTABILITY: Evidence from the local health authority or other source authorized by VA that the individual ___ water supply, X sewage disposal system(s) is/are acceptable.
Lava Zones - The VA will accept properties located within Lava Zone 1 and Lava Zone 2 for VA Lending purposes. A Lava Insurance Policy, with coverage for at least the amount of the loan, is required for all properties located within Lava Zone 1 and Lava Zone 2.
Why Use Premia Relocation Mortgage for your Honolulu, HI Conventional Loan?
Relocation is our only business, and we understand the nuances of relocating. Our high-tech, high-touch approach combines our DigitalMove™ mortgage platform with customer-centric mortgage professionals. We will provide a consultative approach and help you stretch your relocation benefits.
Frequently asked questions