FHA Loan Options?

FHA loan is an attractive option to first time and repeat homebuyers because they are designed for low-to-moderate income borrowers requiring a lower minimum down payment or credit score, compared to many conventional loans. Your FHA loan is issued by an FHA-approved lender and insured by the Federal Housing Administration (FHA).

FHA on the Big Island is less common because of the loan limits. $517,500 for single family homes is unlikely in Kohala and Kona but excellent in Naalehu, Mountain View and Volcano. FHA does not loan in lava zone 1 and 2 so forget Ocean View and Pahoa. If you’re buying a duplex the FHA loan limit is $662,500 for Hawaii County (Big Island). Now check this out…Maui, Honolulu and Kauai are way higher! Link. Hilo delographics steer Hawaii County tremendously.

There are a few components that are added to a FHA Loan appraisal.

• There may be no exposed (unpainted) wood on the home’s exterior?
• There may be no chipping paint that could be a choking hazard to children?
• Well water or water catchment must be inspected for drinking safety.
• Hot water heater must be double strapped according to FHA parameters, 12″ from the top and 12″ from the bottom.
• Smoke alarms are required in kitchen, hallway and bedrooms.

There are a few components that are added to a FHA Loan.

• The FHA up-front funding fee is 1.75% of the base loan amount, which is then added to the base loan amount and financed.
• The FHA mortgage insurance remains in place for the life of the loan.

Here is FHA’s website.

 

Big Island Mortgages by Doug Mallardi
(808) 333-4341 doug@bigislandmortgages.com
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