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What are the Benefits of a VA Loan?
By: CrossCountry Mortgage, LLC
Believe it or not, buying a home doesn’t always require a traditional 20% down payment. If you’re a current or former member of the U.S. Military, you may qualify for a VA loan, which allows you to purchase a home without a down payment.
That’s just one of the advantages you receive from a VA loan. Keep reading to explore the additional home loan benefits of VA loans.
What Is a VA Loan?
A VA loan is a mortgage loan issued under a program designed for Active and Veteran Service Members and their Surviving Spouses. VA home loans are offered through private mortgage lenders, but they’re ultimately backed by the U.S. Department of Veterans Affairs, which was previously known as the “Veterans Administration.”
Several types of VA loans exist. These include:
- Purchase loans
- Cash-out refinance loans
- Interest rate reduction refinance loans
- Native American direct loans
The program allows you to use a VA loan to purchase a home or tap into your home’s equity to make home improvements. When using a VA loan to purchase a home, the loan can fund up to 100% of the home’s value, which is how you eliminate the need for a down payment.
Who Qualifies for a VA Loan?
VA loans are designed for Veterans, Active-Duty Service Members, or their Surviving Spouses. To qualify for a VA loan, you’ll need to provide proof of your Military service and meet the other eligibility requirements set forth by both the VA and your VA-approved lender.
The following items detail the requirements to secure a VA loan:
Certificate of Eligibility (COE)
First, you’ll need to provide your lender with documentation proving your Military service. This document is known as a certificate of eligibility (COE) and can be obtained from the VA website.
The department may request that you provide additional service-related documentation which confirms your status as Active Duty or a Military Veteran.
Credit Score
On the one hand, the VA does not have a minimum requirement for your personal credit score. But VA lenders can have different eligibility requirements, so it’s important to check with each lender before applying for any type of loan.
Generally speaking, it’s easier to qualify for a VA loan than a conventional loan, though some mortgage lenders may charge a fee to applicants with less-than-stellar credit.
Debt-to-Income Ratio (DTI)
All lenders will look at your debt-to-income ratio (DTI) before approving you for a loan. Your DTI is calculated by dividing your monthly debts by your monthly income. Most VA lenders will approve loans if your DTI is 45% or lower, though, as with your credit score, this threshold can vary considerably between lenders.
The VA Funding Fee
Approved applicants will have to pay a modest VA funding fee. This fee helps support the VA program so that other Veterans and their families can receive the benefits of a VA loan. This fee is a percentage of your total loan amount, which can vary depending on how much you’re borrowing.
The funding fee doesn’t have to be paid upfront, nor does it have to be paid at closing. You can roll this funding fee into your regular monthly payments to make it easier to cover.
However, you may be eligible for a refund or a waiver of this funding fee if you have service-connected disabilities. Contact the Department of Veterans Affairs to see if you qualify.
Property Requirements
To qualify for a VA loan, the property you are buying must meet the minimum property requirements. The property itself must be:
- A conventional family home
- The borrower’s primary residence
- Free of any structural defects (e.g. rot, termite infestations, etc.)
- Free of any mechanical or electrical issues affecting safety
- Able to supply adequate heating
These restrictions mean you can’t use a VA loan for commercial property or real estate investing. But homebuyers will find no restriction on the home’s geographic location, which allows you to use this loan program for any home in the U.S.
However, if you want to buy a condo with a VA loan, you’ll need to search the approved condo database on the Department of Veterans Affairs website.
Benefits of a VA Loan
VA loans make particularly great options for first-time homebuyers. If you or your spouse are a current or former member of the U.S. Military, you have access to the following benefits of a VA loan:
No Down Payment
One of the primary benefits of a VA loan is eliminating the need for a down payment. Traditionally, homebuyers could expect to make a 20% down payment when purchasing a house. And while this requirement can vary by loan program and lender, a VA loan eliminates this requirement altogether.
Of course, while this removes one financial barrier for qualifying applicants, the flip side is that you’ll be making a higher monthly mortgage payment, so make sure to factor this into your overall budget to ensure you find a home in your price range.
No Private Mortgage Insurance
What is private mortgage insurance? Typically, when you purchase a home with a down payment of under 20%, the lender requires you to purchase private mortgage insurance (PMI).
The actual cost of your PMI can vary but usually ranges from 0.1% to 2% of every $100,000 you borrow. So for instance, if you purchase a $300,000 home, you could find yourself paying an additional $100 to $250 each month.
A VA loan requires no PMI payment because the VA guarantees at least a portion of the loan, reducing the risk lenders take in providing you with a mortgage. As a result, qualifying homebuyers can purchase a home with no money down and no additional monthly mortgage insurance fees.
Lower Interest Rates and Closing Costs
While the department backs VA loans, they are originated and funded by private mortgage lenders. This setup means that U.S. banks, credit unions, and mortgage lenders must compete to offer the best loan rates and fees.
Homebuyers can therefore compare lenders to find the best interest rates. The upshot of this is that VA loans typically have lower interest rates than conventional mortgages, which can reduce your monthly mortgage premiums.
Secondly, VA loans offer lower closing costs. A “closing cost” is a fee you pay to the lender in return for their assistance. VA loans have specific restrictions on what closing costs your lender is permitted to charge, limiting costs such as the origination fee and prohibiting prepayment penalties or attorney fees.
Easier to Qualify
If you’ve read this far, you probably already qualify based on your Military career or your spouse’s. But beyond this basic requirement, VA loans are easier to qualify for than other mortgage types.
For one thing, you can qualify for a VA loan even if you have a low credit score, with some lenders willing to work with borrowers with credit scores in the 550 range. Additionally, lenders are more willing to work with Veterans with a higher debt-to-income ratio — as high as 45% — which can reduce the barriers to home loan eligibility.
Government Guarantee
The U.S. Department of Veterans Affairs guarantees all VA loans. This setup means that the government is on the hook for at least a percentage of the total loan amount in the event of a default.
Such backing is mainly good news for lenders, who take on less risk when extending these types of home loans. But recipients of VA home loans also benefit from this guarantee since lenders can adopt less-stringent eligibility requirements.
Assumable Loans
Understandably, first-time homebuyers may be looking for a “starter home,” with plans to sell the property at a later date. The good news is that most VA loans are “assumable.” This designation means you can transfer your current VA loan to another buyer if that buyer is also eligible for a VA loan.
An assumable loan can increase the resale value of your home since future buyers can take on the low mortgage rates of your current loan if interest rates have risen.
Alternatives to VA Loans
Despite the benefits of a VA loan, there may be times when you wish to use a different type of loan entirely. For instance, if you have strong credit and enough savings for a 20% down payment, you may qualify for better rates and terms with a conventional mortgage.
You might consider other first-time home loan options if you’re not eligible for a VA loan. If you’re buying a home in a rural or suburban area, you may qualify for a USDA loan, which will also allow you to purchase a home with no down payment.
Otherwise, you might look into an FHA loan backed by the Federal Housing Administration, which offers rates as low as 3.5% for qualified buyers.
Thank You for Your Service
VA loans are just one way of thanking the dedicated personnel of the U.S. Military for their sacrificial service. This mortgage vehicle can put homeownership well within reach and provide you and your family with some much-needed comfort and stability.
CrossCountry Mortgage LLC
3555 Harding Ave, Suite 100
Honolulu, HI 96816
(808) 451-3532
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The Mo’olelo of The Night Marchers
There is hardly an uncle or aunty on the islands that has not heard of the ancient spirits that roam the islands and rule the night. Their supernatural tales instantly generate chicken skin and that sudden chill down your back.
This is the mo’olelo of the Night Marchers.
Night Marchers, or Hukai’pō, are armed warriors adorned in brilliant costumes of ages past that continue their job in the afterlife that they performed in their former lives – protecting ali’i (chiefs) who were so sacred that the common man was never allowed to look at them. The consequence of disobeying this kapu (taboo) was death. In life, kindly chiefs supposedly took to traveling at night to avoid being spotted by commoners and subsequently leaving a bloodbath everywhere they went.
They can be recognized by their torches in a single file, chanting, thunderous pahu drums, and sometimes even theblowing of the pū, or conch shell, as a warning as they march. That’s when you know it’s time to run and hide. If you find yourself in their path, avert your eyes, strip naked and lie face down and play dead. (Some rumors say that peeing on yourself will keep you alive as the Marchers will move on from one they believe is mad.) No matter the scenario, you must hope that the ghost warriors take mercy on you. If not, you’ll hear a shriek of “o-ia!”, which means, “let them be pierced,” and that will be the end of you. If you are fortunate to have a distant ancestor among the warriors, they’ll shout “na’u”, which means “mine”, and the procession will pass you by without any harm.
Ultimately, it would be smart to avoid them completely. Night Marchers are said to march on the last four Hawaiian moon phases before the new moon, and only after sunset and before the sun rises. They often frequent sacred grounds, such as heiau (temples), caves, and areas once reserved for ali’i. There are dozens of known Night Marcher trails all over O’ahu, including Ka’a’awa Valley, Yokohama Bay, Kaniakapūpū, Ka’ena Point, Kalama Valley, Waimānalo, and more.
Whether you believe these legends or write them off as a local superstition, consider yourselves warned…
The Mo’olelo of the ‘Awapuhi Kuahiwi
If you’ve gone hiking around Hawai’i, then you might have come across a curious-looking plant with a beautiful, bright bloom. Locally known as ‘awapuhi or “shampoo ginger”, this plant originated in India and migrated through Polynesia before early settlers brought it to Hawai’i. Every single part of this plant was used in ancient Hawai’i from cooking to medicinal uses, and body care.
The most popular use for ‘awapuhi today is as a shampoo. The thick, slightly sudsy extract can be squeezed out of the flower and applied directly to your hair. It repairs dry and damaged hair, nourishes the scalp, and helps to bring out the shine of your hair. Paul Mitchell (from the famous hair care line) was so captivated by the benefits of ‘awapuhi that he established a self-sustaining ‘awapuhi farm in Hawai’i in 1983 to produce the plant for use in his line of hair care products.
‘Awapuhi is also known by other names, such as pinecone ginger, bitter ginger, and wild ginger. It can be found in many beauty products today but for centuries it has been a standard in traditional Hawai’ian beauty care.
The Best Homeowners Insurance for Military Members
The Best Homeowners Insurance for Military Members
By: Ryan Tronier | Task & Purpose
If you’re in search of the best homeowners insurance for military members, there are only a handful of providers that understand the unique coverage needs of those who serve their country. Underwriters like USAA and Armed Forces Insurance both work exclusively with active-duty service members, veterans, and their families. But a few other nationwide insurance companies also offer special programs and discounts to military households.
Knowing where to look — and what to look for — can save you time and money, especially when you’re closing on the purchase of a new home and need a policy relatively quickly. To that end, we’ve rounded up the top military and non-military insurance carriers that protect the place you call home.
- Best for Auto and Home: Liberty Mutual
- Best for Active Duty: USAA
- Best for Customized Coverage: Armed Forces Insurance
- Best for Retired Military Members: Geico
- Best for Condos: Farmers Insurance
1. LIBERTY MUTUAL – Best for Auto and Home
Liberty Mutual is not exclusively for military members, but its collaboration with the nonprofit Military Benefit Association provides eligible policyholders with “special savings on your auto and home insurance.” While its website is unclear as to the extent of this savings or its requirements, you’ll likely learn more when you request a quote.
When it comes to protection, personal property comes standard with all Liberty Mutual policies — as does personal liability, medical payments, dwelling, and wind, hail, and hurricane coverage. The underwriter offers add-on endorsements for damage caused by backed-up water and overflow, no-deductible jewelry theft, and replacement cost payouts with no depreciation.
On top of that, you’ll save money on your premium through a laundry list of discounts. Policyholders will save for being claim-free, having a new roof, and purchasing either a new or newly-renovated home. You’ll also earn discounts for smart account management, such as going paperless, enrolling in autopay, and carrying multiple policies.
Yet, military households may find their best rate elsewhere. Even with military discounts for home and auto, Liberty Mutual may still cost more than its competitors. Nonetheless, premiums are personal, and the one this provider quotes you may well be competitive.
In any event, Liberty Mutual scored high marks in J.D. Power’s claims satisfaction survey, which signals that it meets the needs of its policyholders quite well.
- Military discount on home and auto
- Policy and claims management via website and mobile app
- Well-regarded for philanthropy and community partnerships
- While many providers offer bundled savings for insurance needs, a partnership with the Military Benefit Association may result in Liberty Mutual being the best for auto and home coverage.
PROS
- Multiple discounts available
- Multiple endorsements for home hazard insurance
- Above-average rating for claims satisfaction
- Not all discounts available in every state
- Often not the cheapest option
2. USAA – Best for Active Duty
Established in 1922 to provide veterans, active-duty service members, and their families with low-cost insurance, USAA has grown into a full-service financial institution providing products such as mortgage loans, deposit accounts, credit cards, and home and auto insurance, to name a few.
Yet, USAA is a cut above the competition when it comes to homeowners insurance, especially for active-duty military who could be called to serve their country at a moment’s notice. When you are deployed and your home is vacant, USAA waives occupancy clauses that void coverage — many other providers will cancel a policy after 30 to 60 days of vacancy.
USAA will also pay deployed and active-duty policyholders the full replacement costs for personal items, including military uniforms, without depreciation — even for belongings damaged or destroyed by an act of war. Furthermore, it provides a financial services and planning hub to make “deployment easier for military families.”
In addition, USAA offers home-sharing coverage for any policyholder with vacation rentals, investment properties, or those who rent out their primary residence.
Although USAA provides fewer discounts than other home insurance companies, it is well regarded for offering some of the lowest premiums on the market. It’s easy to see how USAA regularly takes the top spot for customer satisfaction in J.D. Power surveys.
- Coverage not reduced for vacant homes during deployment
- Home-sharing coverage for both primary residences and vacation rentals
- Provides mortgage loans, deposit accounts, credit cards, and more
- USAA is among the best for active-duty military because of the range of protections it offers specifically to deployed service members, including occupancy clause waivers and war zone exemptions.
- Uniforms covered for both active-duty and deployed personnel
- Replacement cost paid for personal items without depreciation
- Resources for both the deployed and those preparing for deployment
- Fewer discounts than other providers
- Not all exemptions available in every state
3. ARMED FORCES INSURANCE – Best for Customized Coverage
Founded in 1887, Armed Forces Insurance (AFI) has been on a singular mission “to protect the people who protect our nation.” It’s this expertise that has helped AFI grow into one of the largest purveyors of insurance products for military households, including policies for auto, home, pets, watercraft, business, umbrella insurance, and more.
In fact, AFI’s homeowners insurance is arguably the most customizable in the marketplace. Its brochure provides details for over 30 endorsements with which to customize your home insurance policy. Whether you’re looking to insure your ranch’s water supply or a small business operating from your home, AFI may have an add-on to suit your needs.
This military insurer also shines when it comes to premium discounts — it has eight total on its website. Policyholders will save when they purchase a new home, install safety alarms, and get certified for either a Building Code Effectiveness Credit or a Safer Living Home Credit. Those who live in gated communities will also earn a discount, as will homeowners who fortify their properties against windstorms.
Moreover, AFI provides additional services for military families and veterans, including a PTSD Resource Center, Permanent Change of Station (PCS) information hub, and the Armed Forces Military Spouse of the Year program.
- Highly customizable insurance with over 30 endorsements
- Underwrites military policies for Nationwide, The Hartford, and Safeco
- Will insure against natural disasters
- Armed Forces Insurance has 135 years of experience working exclusively with military households — and it understands the varied home insurance needs of each and every one.
- Multiple discounts available
- Offers educational resources
- Expertise in military insurance policies
- Underdeveloped mobile and online platform
4. GEICO – Best for Retired Military Members
If you’re looking for home insurance with a nationwide reach and discounts just for veterans, then you should know about Geico. Although this carrier is better known for its auto insurance, Geico also contracts homeowners policies through its third-party network. In some ways, outsourcing underwriting can be a disadvantage (during the claims process, for example). But for veterans, it means Geico can match them with a partner best suited for their specific needs.
What’s more, not only can veterans enjoy the provider’s standing military discount of 15 percent, they can further save by being a military association member, which includes the Armed Forces Benefit Association (AFBA), Association of the United States Army (AUSA), Navy League of the United States (NLUS), and more.
Active-duty service members may appreciate Geico’s emergency deployment discounts when they serve in areas designated by the Department of Defense as “imminent danger pay areas.”
On the other hand, Geico offers the home insurance that one expects to see — but not much else. The provider’s standard policy will likely meet the needs of the majority, but homeowners who want a menu of endorsements and add-ons from which to choose may want to consider Armed Forces Insurance or another company.
Still, Geico offers coast-to-coast coverage, cheap rates, and plenty of experience in the insurance industry.
- Discounts for members of military associations
- Military discount of up to 15 percent
- Options for mobile, manufactured home, and condo insurance
- Although not solely for military families, Geico is among the best for retired military members due to its steep discounts for members of military veterans associations.
- Military discount extended to National Guard and Reserves
- Emergency deployment discounts
- Rate quotes available online and by phone
- Fewer local agents than other providers
- Does not underwrite its own policies
5. FARMERS INSURANCE – Best for Condos
On-the-go military personnel and those living off-base may have a lot to like about Farmers’ condo coverage. This well-established underwriter offers an affinity discount to “customers who are active-duty, active reserves, retired, and honorably discharged military veterans.” But you’ll have to get a rate quote either online or by phone to know how much of a discount Farmers will give you, as availability and the amount of savings varies by both state and policyholder. Nevertheless, since condo insurance rates are typically on the cheap end of the cost spectrum, military households stand to save big.
Keep in mind that condo insurance is nearly identical to a home policy — the primary difference being lower limits, and the fact that homeowners associations (HOAs) generally cover the exterior of the home, such as the roof and structural walls. This is presumably why Farmers sprinkles a few extra perks onto its standard policy. Military on deployment may enjoy the complimentary insurance for lost luggage and personal property while traveling, and the $5,000 worth of coverage for theft of jewelry and watches when serving overseas.
However, Farmers may have some customer service issues. J.D. Power gave this provider below-average marks for customer satisfaction in a recent report. That said, J.D. Power also awarded Farmers the bronze medal for property claims satisfaction, too. So, it may be best to speak with an agent and decide for yourself.
- Major endorsements come standard, including fire and hazard
- Reimbursements for extended living expenses during repair
- Lawsuit protection comes standard with liability coverage
- Farmers Insurance may be the best for condos owing to the provider’s military discount and the several extras that come standard with all condominium policies.
- Multiple discounts available
- Perks like worldwide baggage insurance
- Nationwide agent network
- Often not the cheapest option
- Below-average rating for customer satisfaction
Things to consider before buying military home insurance
All homeowners should be familiar with their home insurance policies, especially active-duty military who may be deployed. Here are a few of the things to consider when looking for military home insurance.
Occupancy clauses
Review your policy for vacancy clauses or occupancy clauses that limit, reduce, or even void coverage when the home is unoccupied for a certain period of time, often 30 to 60 days. If you’ll be deployed without family living in your primary residence, consider purchasing a separate policy or switching to USAA — it waives vacancy clauses during deployment at no additional cost to you.
Furthermore, if you choose to rent your residence while deployed, be certain to secure the correct type of coverage beforehand, frequently called home-sharing or landlord insurance.
War exclusion
Providers will generally cover personal belongings even while traveling overseas, but many exclude damages or losses due to an act of war. Policyholders who are deployed to a combat zone will need additional coverage, unless they are insured with USAA or AFI — both of which do not write war exclusions into their home policies.
VA loans
If you’ve financed your home purchase with a VA mortgage, the Department of Veterans Affairs has specific home insurance guidelines that must be followed. Thankfully, these government-backed loans are so common that whichever provider you choose will be familiar with insurance requirements for VA loans. Check out our guide on everything you should know about VA home loans.
FAQs about homeowners insurance for military members
Q: How does homeowners insurance work?
A: Homeowners insurance works by protecting your residence from hazards such as fire, storm damage, burglary, and so on. In the event that you experience such a peril, you’ll file a claim with your insurance provider. An agent will request information, assess the damage, and payout to replace or repair any losses.
Q: What does homeowners insurance cover?
A: Homeowners insurance typically covers damage to a residential property’s interior and exterior due to fire, storms, and flooding caused by rainfall or burst pipes. It also covers stolen belongings and property destruction by means of vandalism.
Q: Is homeowners insurance required?
A: Homeowners insurance is not required by law. However, for homes that have been financed with a mortgage loan, it is likely required by the lender until the balance is paid in full. In any event, home insurance is highly recommended to protect what is perhaps your most valuable asset against damage and destruction.
Final thoughts
Many times, home insurance can be an afterthought or a hurried decision — particularly for first-time home buyers who are eager to get the keys to their dream homes. But military members face certain challenges owing to their unique line of work and the likelihood of deployment. Taking the time to compare quotes from several providers will ensure that you find the coverage you need, at the price you deserve.
Resource:
Dreaming of Places Far, Far Away: New Coldwell Banker Data Shows High Rate of Out-of-State Searches
Dreaming of Places Far, Far Away: New Coldwell Banker Data Shows High Rate of Out-of-State Searches
By Athena Snow
Fresh Coldwell Banker data from the Move Meter℠ reveals where Americans are dreaming of moving
MADISON, N.J. (July 6, 2022) – This summer, as Americans enjoy their favorite activities to cool down, dreams of moving are heating up. Fresh data from the Move MeterSM on the refreshed coldwellbanker.com shows trends and insights into where Americans are dreaming of moving, giving sellers an informative, clear picture about the potential of listing their homes. In fact, 82% of all Move Meter℠ searches to date were looking to move out of state.
The Move Meter℠ compares cost of living city by city. It was created by Coldwell Banker Real Estate as part of a suite of industry exclusive tools to allow consumers to dream of home and guide them to their new destination. In addition to the Move Meter, Coldwell Banker has created the ultimate destination for home sellers at coldwellbanker.com, with industry exclusive tools like the CB Estimate℠, which provides a home value estimate, and a remarkable new Seller’s Assurance Program.
Americans are on the Move (Meter)
- Going the distance: The average Move Meter℠ search covered 1,015 average miles (about the distance of New York to Miami).
- Eighty-two percent (82%) of all Move Meter℠ searches were looking to move out of state.
- On the flip side, Massachusetts had the greatest proportion of searchers considering staying in-state, with 40% of all searches from Massachusetts looking to stay loyal to the Commonwealth.
- Only about 13% of all searches were looking within a driving distance of 100-miles from their origin destination with the highest proportion of moves being somewhere between 500 to 1,500 miles away (42%).
- Chasing Sunshine: While Midwesterners and Northeasterners are looking for warmer temps in the Southeast (38% vs 46%), Southeasterners, Southwesterners and Westerners all had higher likelihoods of staying local to their respective regions.
Americans are dreaming of moving – but where to?
- Southern Charm: Austin, Texas, topped the chart as the most searched destination to move to, and had 46% more searches than the next closest destination. The top locale dreaming about moving to Austin is San Diego, California. So how does the move stack up? According to the Move Meter℠, the move from San Diego to Austin could be a smart move if you value job market strength
- California Dreamin’: 20% of searches from California were looking to stay in the Golden State. The top in-state searches looking to move somewhere else within California were from San Diego, San Francisco and Bakersfield.
- And for those looking outside of California, where were they dreaming about? Californians are looking to Texas, Florida, Tennessee and Washington overall, with Austin, Dallas, Seattle and Nashville having the greatest move appeal outside of California.
- Burnin’ Up for Florida: The #1 state topping the Move Meter℠ interest index was Florida with one out of seven of all Move Meter℠ searches looking to move to the Sunshine State.
- The top states looking to soak up the Florida sun included New Jersey, California, New York, Illinois, Ohio and Massachusetts. Where in Florida are these searchers looking? Sarasota, Miami, Naples, and Tampa were the most popular searched cities.
- Floridians don’t disagree – they, too, see the appeal, as they were one of the top states searching for destinations within the state as well, with a quarter of Floridian searches looking to stay in-state.
- The other top states Floridians are searching was North Carolina and Tennessee.
- Destination Dreams: The top 10 searched cities included Austin; Sarasota, Florida; San Diego; Denver; Nashville, Tennessee; Tampa, Florida; New York; Naples, Florida; Charlotte, North Carolina; and Seattle.
With a network of over 100,000 agents across the globe, Coldwell Banker has affiliated agents in nearly every market in the United States. So, no matter where searchers are looking, a Coldwell Banker affiliated agent can help make the dream come true. Home sellers and buyers can visit coldwellbanker.com to find an agent and prepare for their next move to their dream home using the coldwellbanker.com/movemeter.
CLICK TO TWEET:
QUOTES:
“Our new Move Meter℠ tool provides insights into where American’s are looking to make their dream moves. Since 1906, Coldwell Banker has served as the leading innovator in real estate, with agents in nearly every market in the US, we provide the tools and the resources sellers need to help make their dreams come true, wherever their search takes them. If you’re looking to make that big move – let our Coldwell Banker agents guide you there.”
- Ryan Gorman, CEO of Coldwell Banker Real Estate LLC
“Through the new tools on coldwellbanker.com, we’re seeing a strong interest and desire in Americans and homeowners to take a leap of faith and relocate to live in their dream destinations this summer. The Coldwell Banker Move Meter℠ provides sellers with the support and tools they need to make those dreams become a reality.”
- David Marine, CMO of Coldwell Banker Real Estate LLC
About Coldwell Banker Real Estate LLC
Powered by its network of over 100,000 affiliated sales professionals in approximately 2,200 offices across 40 countries and territories, the Coldwell Banker® organization is a leading provider of full-service residential and commercial real estate brokerage services. The Coldwell Banker brand prides itself on its history of expertise, honesty and an empowering culture of excellence since its beginnings in 1906. Coldwell Banker Real Estate is committed to providing its network of sales professionals with the tools and insights needed to excel in today’s marketplace and is known for its bold leadership and dedication to driving the industry forward. The brand was named among the 2022 Women’s Choice Award® Most Recommended brands for customer experience and overall quality. Blue is bold and the integrity and values of Coldwell Banker give the Gen Blue network an unbeatable edge. Coldwell Banker Real Estate LLC fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Each office is independently owned and operated. To join Coldwell Banker Real Estate and unlock the possibilities of Gen Blue®, please visit www.coldwellbanker.com/join.
About AnywhereSM
Anywhere Real Estate Inc. (NYSE: HOUS) is on a mission to empower everyone’s next move. Home to some of the most recognized brands in real estate – Better Homes and Gardens® Real Estate, CENTURY 21®, Coldwell Banker®, Corcoran®, ERA®, and Sotheby’s International Realty® – the AnywhereSM portfolio includes franchise and brokerage operations as well as national title, settlement, and relocation companies and nationally scaled mortgage origination and underwriting joint ventures. Supporting approximately 1.5 million home transactions in 2021, Anywhere is focused on simplifying, digitizing, and integrating the real estate transaction for all consumers, no matter where they may be in their home buying and selling journey. With innovative products and technology, Anywhere fuels the productivity of its approximately 196,200 independent sales agents in the U.S. and approximately 136,400 independent sales agents in 118 other countries and territories. Recognized for eleven consecutive years as one of the World’s Most Ethical Companies, Anywhere has also been designated a Great Place to Work four years in a row, named one of LinkedIn’s 2022 Top Companies in the U.S., and honored by Forbes as one of the World’s Best Employers 2021.
Understanding The Unique Hawaii Closing Timelines
Understanding The Unique Hawaii Closing Timelines
by Jay Miller
In the State of Hawaii, there is a lot of confusion surrounding the “closing date” for a real estate purchase transaction. The official closing date is more technically known as the settlement date/recording date in Hawaii and does not occur until the date the transaction records with the State of Hawaii Bureau of Conveyances, 2 business days after all loan proceeds (if applicable) and home buyer closing funds have been deposited and cleared with the escrow company handling the transaction.
This leads to a lot of misunderstandings between home buyers, realtors, escrow companies, and mortgage lenders (especially those that primarily do business on the mainland). In almost all other US States, the official closing/settlement typically happens the same day the loan proceeds are funded into escrow. As a result, many lenders use the terms “closing” and “funding” synonymously which leads to a bit of confusion when the transaction is taking place in Hawaii where the actual closing date is 2 full business days after the loan funding date. Why is Hawaii unique in this regard?
The reason for the 2 business day closing difference is Hawaii’s “Good Funds” Law. Escrow companies in Hawaii are prohibited from disbursing funds deposited into escrow “until final settlement of the item (good funds) has been received by the financial institution to which the term (deposit) has been submitted for collection.” (HRS §449-16). The Hawaii Association of Realtors standard form purchase contract provides that “closing shall be the date when all appropriate conveyance documents are recorded” at the State Bureau of Conveyances. If the closing date falls on the weekend, State or Federal holiday, or any other day that the State Bureau of Conveyances is closed, “closing will be on the next day when documents can be recorded.”
What this all means for you is that ALL funds necessary to close the transaction, including your closing funds (cash to close) and loan proceeds, must be received and verified as “good funds” by escrow 2 business days prior to recordation of the documents at the State of Hawaii Bureau of Conveyances. Good funds simply mean that the funds held at escrow are immediately available for withdrawal and disbursement. This explains why escrow companies in Hawaii will require home buyer closing funds in the form of a Fed funds wire or cashier’s check drawn on a local Hawaii Bank. A personal check, electronic (EFT) transfer or bank/cashier’s check drawn on a mainland bank can take up to 7 business days to clear and become “good funds”.
Here are some typical closing timeline examples (assuming there are no holidays, weekend days, or days the Bureau of Conveyances are closed between funding and recording).
- If the closing date per the purchase contract falls on a Friday, then all closing funds and lender loan proceeds, if applicable, must be received and verified in escrow no later than Wednesday. Most lenders will need 24-48 hours to review signed loan closing documents and order the Fed funds wire of loan proceeds to escrow. Typically, the signing of all closing documents will occur on Monday or Tuesday at the latest for a closing on Friday.
- If the closing date per the purchase contract falls on a Wednesday, then all closing funds and lender loan proceeds, if applicable, must be received and verified in escrow no later than Monday. Most lenders will need the buyer(s) to sign all closing documents on Thursday or Friday of the previous week to make the closing date of Wednesday.
- If the closing date per the purchase contract falls on a Tuesday, then all closing funds and lender loan proceeds, if applicable must be received and verified in escrow no later than Friday of the previous week. Most lenders will need the buyer(s) to sign all closing documents by Wednesday or Thursday of the previous week to make the closing date of Tuesday.
Keep in mind that you as the home buyer start paying interest on your loan the date your lender funds your loan proceeds to escrow. This is also the date your homeowners and hurricane insurance policy, if applicable, must be in effect, not the actual closing date 2 business days later when you get the keys to your new home.
Since home buyers start paying interest on the day of loan funding, the majority of purchase closings happen in Hawaii on Wednesdays, Thursdays, and Fridays so that you, as the home buyer are only paying 2 days of interest in advanced of taking ownership of your new home. If your closing date is on a Monday or Tuesday, then you are paying 4 days of interest upfront (the 2 business days for good funds, plus Saturday and Sunday), as funding occurs on Thursdays for a Monday closing and Fridays for a Tuesday closing.
Additionally, Hawaii is as much as 6 hours behind Eastern Standard Time (5 hours behind during non-Daylight Savings Time as Hawaii does not change time during the year), the window for lenders to order Fed funds wires usually closes at around 10:30am. This is primarily why signing of the closing documents typically occurs 1-2 days prior to loan funding. The only way to sign and have loan funds sent to escrow the same day is to sign all closing documents early enough in the morning for the lender to receive the fully executed and notarized documents and order the wire prior to the 10:30am cutoff time.
Most real estate agents and good lenders in Hawaii will explain all these closing timelines to you as the home buyer so that you completely understand what is expected for signing, funding, and recording (official closing) dates. If you choose to work with a mainland lender for your Hawaii purchase, you will need to explain this to your lender in such a way that they completely understand your closing timelines to prevent a delay in your purchase closing.
Remember, for the mortgage lender, the “closing” date is the day they fund loan proceeds to escrow. In Hawaii, the “closing date”, the day you receive the keys to your new home and become the official owner, is actually 2 business days later. It is in your best interest to ensure your lender completely understands this so you can both plan your loan approval, closing document signing and loan funding according to Hawaii’s required closing timeline.
Jay Miller
Compass Home Loans LLC
Phone: (808) 429-0811
Email: jaym@compasshawaii.com
The Mo’olelo of the Oahi (Hawaiian Fireworks)
Whether you love them or loathe them, it’s hard to imagine Independence Day without fireworks. From the first celebrations of our nation’s independence, fireworks have played a major part in the festivities, but our new country wasn’t the first to use “fireworks” in celebration of important events.
In ancient times Hawaiian royalty would celebrate special occasions with the oahi (fire-throwing) ceremony which involved throwing flaming embers from high atop the sea cliffs on Kauai’s north shore. The lit firebrands were thrown out over the ocean into the strong seaward winds where they would be caught in the updrafts.
Oahi, meaning rocket or fireworks, required months of preparation. Two kinds of wood were used, the hau and the papala. The hau was easy to get and was cut into ten- or twenty-foot lengths with the bark peeled off and then dried until it was as light as a feather. The papala grew in the high mountains and was hard to get so it became the king’s special fireworks. It had a hollow core when dry, so the flame ran through it as it fell, giving the effect of a shooting star.
These dried sticks were carried up the high cliffs to a ledge 1000 ft or more above the sea. At night the men would light the ends of the sticks and hurl them like javelins into space. The concave cliffs forced the trade winds upward forming a sort of air cushion allowing the blazing hau sticks to rise and fall. The combination of the wind and gravity fanned the burning end into a blazing ball of fire as the stick danced in the air and away from the cliff until it reached the outer edge of the air cushion where it would plummet, blazing fiercer and fiercer, until it rushed out to sea.
The Mo’olelo of “Ka Mele ‘O Ke Anuenue” as told by Darrell Aquino
Ka Mele ‘O Ke Anuenue is a mele composed for Harold Kano’eau Delatori. He was a young man who passed away at an early age. Harold’s friend, Kekoa Yap, wrote this song in his memory. Harold was from Lahaina, Maui and the rainbow (anuenue) represents him in the mele.
Harold was a brother-in-law to me. Kekoa is a Kumu Hula (master hula teacher) and one of my granddaughters was a haumāna (student) in Kumu Kekoa’s halau. My granddaughter was entered into a hula competition and was chosen to hula for this song. I had the opportunity to help compose the music for this song and perform it at the competition. I later chose to record the song after the competition because of the wonderful feedback we were getting from the performance.
The mele was then entered into the Na Hoku Hanohano Awards and was a finalist in the category of “Hawaiian Single of the Year”. It was exciting for me to present this song to the public and to my peers for the family of Harold who is beloved by many. Though it did not win the award, our family found it to be a privilege and honor to be recognized by the Hawaii Academy of Recording Arts.
Lyrics:
| Aia i ka uka ‘O Lele
Ke ānuenue pi’o i luna Ka wehi ‘O Hālona Hoapili ‘O ka ua pā’ūpili e Ua pono no kou waiho’olu’u Ha’a le’a a puni ‘O Pu’u kukui Kū ha’o i ka makani Ma’a’a Nānā ‘ia e Kihawahine ‘Ike ‘ia e ke lehulehu Lei ia ko waiho’olu’u I ka pu’uwai hāmama ‘O nā kupa, o nā kini, o kēia ‘aina e Ha’ina ‘ia mai ka puana Ka mele ‘O ke ānuenue Lei lua’ole ‘O Lāhainā Ka wehi o ke kuahiwi ē He Mele Inoa, a he Mele Lei no Kano’eau |
There in the uplands of Lele
The rainbow arches on high The adornment of Hālona Companion of the Pā’ūpili Rain Your colors are righteous Dancing about Pu’u Kukui Standing firm in the Ma’a’a winds Seen by Kihawahine Seen by the multitudes Your colors are worn as a lei Warming the hearts Of the people, of this land
Tell the refrain Of the rainbow’s mele Incomparable lei of Lāhainā An adornment of the uplands |
About Darrell:
Darrell is my favorite Hawaiian musician! His family is near & dear to my & Mike’s hearts! He has performed for us at several family & professional events over the years.
His career has taken him across the islands and around the world. He’s been honored with multiple awards and performed with many international artists. He currently performs in a band at various venues across the islands as well as solo/duo performances.
The Mo’olelo of the Lei
It’s said that lei custom was introduced to the Hawaiian Islands by early Polynesian voyagers. Lei were garlands worn about the neck constructed of flowers, leaves, shells, seeds, nuts, feathers, and even bone and teeth of various animals. In Hawaiian tradition, lei were worn by ancient Hawaiians to beautify themselves and distinguish themselves from others.
During the “Boat Days” of the early 1900s, lei vendors lined the pier at Aloha Tower to welcome malihini (visitors) to the islands and kama’aina (locals) back home. It is said that departing visitors would throw their lei into the sea as the ship passed Diamond Head, in the hopes that, like the lei, they too would return to the islands again someday.
Lei is so important to the Hawaiian people that on the first of every May, an event called Lei Day is celebrated to honor the act of lei making and wearing and sharing lei.
Lei can be made in a multitude of ways as well as in a variety of shapes, sizes, colors and meaning. Lei can be worn anytime by anyone on any occasion. To give a lei, it is presented to another by gently placing it around their neck, accompanied by a kiss on the cheek.
To wear a closed lei, it should be worn on the shoulders, half hanging on the front and the other half on the back. An open lei should be centered on the back of the neck with both ends hanging down on the front.
Don’t play with a neck lei by putting it on your head or wrapping it around your wrist as a bracelet. There are specific shorter lei to be worn on the head called haku, or for your wrists or ankles called kupe’e. The haku is often for special occasions such as weddings and graduations while the kupe’e are generally worn by dancers to draw attention to the graceful movements of the hands and feet.
If someone is pregnant, do not offer them a closed lei, as it’s considered bad luck to wear one (it symbolizes the umbilical cord getting wrapped around the baby’s neck).
Do not refuse a lei when offered one or remove your lei in the presence of the person who gave it to you as it is disrespectful. If you are unable to wear the lei for whatever reason including allergies or interference with your work, it is polite to discreetly take it off then hang the lei in a visible place of importance and honor.
A lei should never be thrown away in the trash as it is considered disrespectful. It is customary to return the lei to the earth. You can either remove the flowers from the string and scatter them in the ocean, bury them, or burn them. Or simply hang the lei on a door or window to dry it out to preserve it. Lei can also be hung from trees or left in a place with special meaning such as a statue or sacred site.
A lei should never be thrown away in the trash as it is considered disrespectful. It is customary to return the lei to the earth. You can either remove the flowers from the string and scatter them in the ocean, bury them, or burn them. Or simply hang the lei on a door or window to dry it out to preserve it. Lei can also be hung from trees or left in a place with special meaning such as a statue or sacred site.
The Mo’olelo of the Menehune and the Leprechaun
Name a group of small, mischievous, mythical, nocturnal artisans that love to sing & dance and are rarely seen by humans ….
Did you guess the menehune? You’re right!
Did you guess the leprechauns? You’re also right!
The legends and folklore differ between the menehune and leprechauns, but they share a lot in common. The details vary within their own histories, but it is commonly accepted that both groups were small compared to the average human and were not often seen by anyone unless caught by surprise.
The menehune people were a race of small native Hawaiians who inhabited the islands before the first settlers arrived from Polynesia. They spent their nights constructing legendary engineering feats in a single night before disappearing into the hidden forests and valleys. Their most famous creation is the Menehune Fishpond, also known as the Alakoko Fishpond, on the island of Kauai. The 900 ft wall in the pond was built to trap and raise fish for the ali’i (Hawaiian royalty).
Leprechauns are said to be skilled cobblers, a profession which provides them with their famous pots of gold. Those prized pots are hoarded and hid at the end of a rainbow where humans can try to catch them to barter their freedom for their treasure. But beware, those teeny dudes are known tricksters and it’s usually the human who ends up tricked! Keep your eyes open for rainbows and if you hear the sound of a cobbler’s hammer, there may be a leprechaun (and his gold!) nearby.
