Hawaii Zero Down Home Mortgage Loans

It is possible to buy a home with zero down, meaning no down payment. Listed below are a couple of the Hawaii zero down home loan options for you to take a look at.

The Hawaii zero down home loan is the most common home loan that we do here in the Hawaiian islands since the cost of real estate is so expensive, borrowers try to stay liquid with their assets and are not hot to put down 20% or more on a home, but would rather get a zero down loan 80/20 or 100% loan and take the tax deduction for the mortgage interest you pay on the loan.

There are several methods by which eligible home buyers can minimize or even eliminate down payments. They include: VA loans, Owner financing, Lease/purchase, House trading, Job-related federal programs, and State and local government programs.

In this difficult economy where stock valuations are questionable, one of the best investments here in Hawaii is definatly real estate. But for many potential buyers, the problem is coming up with a down payment to make this all-important purchase since homes here can cost well over 600K

House Trading, Lines of Credit - Many professional investors acquire homes with zero down by trading one property for another. In some cases, they trade one large property for several smaller rental properties. Or they trade houses in different cities to acquire a vacation or retirement home. Property trading is also a legal way to avoid the capital gains associated with selling a property. Another way to acquire a property with no money down may be with a line of credit secured by the equity in another property. This allows the homeowner to purchase another property using the accumulated equity in a home without selling the original property.

VA Loans - The method of purchasing a home with no down payment that most people are familiar with is through the Department of Veterans Affairs, or VA. This benefit is available to active and retired members of the military service, veterans, POW's and MIA's and their unmarried widows. All branches of the service including the Coast Guard are eligible. Also members of Selected Reserves or National Guard who have completed six years may be eligible along with many with WW II service from the merchant marines, military academies and others pulled into service for the war effort.

HUD - The Office of Housing and Urban Development (HUD) offers special financing for first-time home buyers. This program is based upon need and is designed to allow low-income families to obtain their first home without a significant down payment or closing fees. Also, many HUD foreclosure homes require no down payments.

Job-Related Federal Programs - The federal government also has programs to help farmers and police personnel acquire homes with nothing down. For those with limited income who wish to live in rural areas, the Rural Economic and Community Development Administration offers farmers home loans with nothing down. Monthly payments may be subsidized and the interest can be as low as 1 percent. To encourage police to occupy homes in crime-targeted areas, special federal programs permit police officers to purchase homes in selected areas. Information is available to law enforcement officers through their places of employment.

Local Programs - Some states, counties and cities offer programs that can eliminate down payments. Often, prospective home buyers must meet income requirements, hold certain jobs, be a first-time buyer or agree to buy in a specific area.