Selecting a VA Lender on Oahu, VA Loans in Hawaii & VA Jumbo Loans

I’ve been assisting several Oahu VA Buyers recently and in servicing these buyers, unfortunately, it has come to our attention that all Oahu VA lenders are not alike.  Sadly, many VA lenders on Oahu use a national call center and the customer service that is provided through that center is often not even close to the same as that of VA Buyers working with Oahu, Hawaii VA lender with a local office. 

On a positive note, we’ve worked with some national companies that provide local, reliable customer service.  It is important to work with one particular loan officer, who you can actually sit down and meet with in an Oahu location, if you wish, and that your loan officer is available during Hawaii business hours.  Especially when you are working with a tricky property (as are many on Oahu) it makes sense to work with both loan officers and underwriters who are here on-island and who know the market and Hawaii properties.  From a REALTOR’s standpoint, having a great local VA lender can make the difference between actually closing the sale or having the Buyer lose the property due to an unresolvable problem.

In addition to providing various customer service options, different VA lenders may also provide their customers with terms and conditions which will vary greatly.  For example:

1.  Great VA lenders on Oahu will pick up the VA Buyer’s Non-Allowable Costs and these WILL NOT be passed on to the Seller of Property. This is especially important in a Sellers’ market like we have on Oahu today, to make the VA Buyers’ offers more competitive.  Many Sellers of Oahu real estate will not work with VA Buyers if they have to pick up the VA Non-Allowable Costs.

AND/OR

2.  Great VA lenders on Oahu will not charge a Loan Origination Fee. If the Lender does not charge an origination fee, the Buyer is allowed by the VA to pay the “non-allowables.”

3.  Great VA lenders on Oahu will not profit from a VA Lender Referral Program, doling out names of any REALTOR that signs up, and will refer only to REALTORS who provide great customer service.

4.  Great VA lenders on Oahu will offer attractive terms for those VA Buyers desiring Jumbo loans. It is important to have a robust VA Jumbo Loan program on Oahu, where many properties cost in excess of $1M.  Not all VA Lenders have the same maximum loan limits.  If you are interested in a VA Jumbo Loan with a limit of over $1M talk to us and we can point you in the right direction.

There are also many other things a great Oahu VA lender will know, that are not commonly known. There are many myths about VA Loans.  You may think you are not eligible for a VA loan, when in fact you are.  Your rates and terms may be affected by a variety of considerations.  It always pays to work with an expert in real estate and with respect to your loan. Please contact Yvonne Ahearn at 808-721-8088 for a referral to a great VA lender.  It can save you both money and disappointment.

VA Loan Referrals & Finding the Best Military Realtor on Oahu

To Use a VA Loan REALTOR Referral Program or Not?

As you may already know, I work with many military buyers and sellers of real estate on Oahu. Recently, we submitted an offer for a military couple relocating to Hawaii, who is using a VA loan to purchase real estate on Oahu. This couple came to us after using a REALTOR who was referred to them by a VA lender’s REALTOR referrral program.

Several VA lenders (e.g., USAA) have these programs.  How they often work is that VA Buyers who do not have a REALTOR are referred to a REALTOR participating in the VA Lender program.  If the REALTOR closes the sale with the VA Buyer, the VA lender is paid a referral fee of anywhere from 25-40% of the total commission. Sometimes, the VA lender will rebate a small portion of this referral fee back to the VA Buyer.  The lender keeps most of it, so they have incentive to get you to use on of their preferred REALTORS.

Our VA clients told us that they were not impressed with the REALTOR referred by their VA lender, for various reasons, so they went elsewhere.  Fortunately, they ended up finding me and using me as their REALTOR. It caused me to wonder what, if any, process was used by the VA Lender when selecting REALTORS to refer? I am certain that many REALTORS who participate in the program are very good REALTORS, but I wonder how many are not? Is it in a VA Buyer’s best interest to use a REALTOR from a referral service? …. the answer is ….. MAYBE.

Here is my advice to military buyers using a VA lender referral program:

1. Make sure the VA loan REALTOR has real life experience in the VA market segment.

Has the REALTOR done many VA loan transactions? Have they ever had their own VA loan? Is the REALTOR a former or current military servicemember or spouse?  “Yes” answers to these questions may indicate experience and help the transaction run more smoothly.

2. Make sure the military REALTOR has quality reviews for their service and that they can provide references.

Look at the REALTOR’S website for testimonials. Ask them for names and numbers of specific client references. Make sure to contact those references. REALTORS with happy clients, who freely and pleasantly want to give a good recomendation, are your best bets.

3. Make sure your VA Loan REALTOR has the time to take you on as a client. Ask how many transactions they have going right now. More is not always better. To how many active buyers are they showing property within any week period? Showing property to Buyers is a time intensive process. Personally, I would never handle more than 3-4 very active buyers, on my own.  Even so, we use a team approach, which makes working with multiple Buyers more manageable, as we intend to always maintain a very high level of service to all our clients. We will turn business away when we cannot handle it.

4. Make sure your military REALTOR is not too far away from the geography of your intended purchase of Oahu real estate to provide diligent service.  

The traffic on the island of Oahu can be bad to and from certain areas. A REALTOR from another region of Oahu maybe able to handle clients in other further regions, but only with careful planning and allowances for traffic, and the extra commuting time. They should also have experience in all of the areas you see, preferrably both with buyers and sellers. It can be done, but is difficult when a REALTOR is too busy. In this case, only the client suffers. And it goes without saying, your REALTOR should have a working knowledge of the area in which you intend to buy. 

In Summary:

If the REALTOR has the required experience, proven track record of quality service, and time to take you on as a client, it may be worth taking the chance on the blind referral from a VA lender to get a rebate. If not, do your research and find a good, professional REALTOR, based on the criteria above.  It will probably save you money in the end.

I have more than a decade of experience with military buyers relocating to Oahu and other VA buyers on Oahu. My husband, who is also licensed and who has over 16 years of Active Duty in the USMC and is now a reservist in the USMC, and I have helped many military friends and other military buyers with VA loans on Oahu in their purchase of Oahu real estate. We are permanent residents of Oahu, since 2004, and have helped both Buyers and Sellers most areas of the island of Oahu, including areas near the military bases.

Please contact Yvonne Jaramillo Ahearn RB-20262 at 808-721-8088 for your Oahu real estate needs.