Earlier this year, the U.S. Department of Veterans Affairs (VA) had made changes to its loan guarantee program resulting in a significant drop in the maximum loan guarantee for veterans in Hawaii. In 2013, the VA loan limit was $750,000 for Oahu (and slightly higher in 2012). For 2014, it has dropped to $625,500.
The Hawaii Association of REALTORS® (HAR) applauds the announcement that the VA will increase loan limits in several areas of the State effective immediately.
Due to our high cost of living and high home prices, it’s extremely difficult for Hawaii residents to gather together enough money for a down payment. For many, the VA loan is the only way they can purchase a home. Many of our active duty, reserve and national guard members purchase homes using no down VA loans.
Last year, more than 5,000 families in Hawai‘i relied on VA loan guarantees.