A step by step guide for getting a home loan

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Real Estate

Having trouble qualifying for a Hawaii home loan? Typical banks will require at least 20% down, but what if you don't have the cash to spare? If you are not able to qualify for a traditional loan, try an alternative method.

If you are military and are PCSing to Hawaii you will more than likely qualify for a VA loan.  There are several methods that provide financing even if your credit score is less than perfect. This following information describes the steps lenders will take to qualify you.

a step by step guide for buying a home loan

Step 1: Establish your credit score. If it is too low, get credit cards and make purchases to increase it.

Step 2: Establish your income; this will be used to calculate how much you can afford monthly in payments (which the bank will not allow you to go over).   

Step 3: Provide documentation of assets, such as investment accounts, 401ks or stocks.

Step 4: Provide documentation of liabilities, such as credit cards or car loans.

Step 5: The lender will pull your credit score again to ensure that the information you submitted is accurate and that there were no changes in your financial situation.

Step 6: You will be asked questions about how much money you owe and why, in order to determine how risky you are as a borrower.

Step 7: You apply for a loan.

Types of mortgages for non-perfect credit scores

FHA loans require 3.5% down, but the rates are low and they don't technically have credit requirements; they look at income-to-debt ratio instead

USDA loans are specifically for rural areas of America where it's hard to get a loan due to lack of population in the area. They only require 0% down.

VA loans are available to veterans of the armed forces who have served at least 6 months. As long as you service did not end due to dishonorable reasons, you are able to get money without any down payment or credit score.

Fannie Mae and Freddie Mac are government-sponsored enterprises that provide programs for lenders to sell mortgages. They offer loans with low down payments and credit scores, but they require mortgage insurance for anyone putting less than 20% down. For anyone that puts 20-25% down, the insurance is refunded.

It's a pretty straight forward process and I am more than happy to help you with finding a lender and walking with you through the process.  Please call me any time.


how to qualify for a home



Photo by Tierra Mallorca on Unsplash 


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