The Home Buyer's Korner

Information presented should be used for educational purposes only.

August 9th, 2015

Stephen Border

Stephen Doversola (RA)

First Realty, Inc

(808) 450-4115

Buy Smart ~ Live Smart

Renters and would-be home buyers need to think long term! If you’ve come to realize that you’re paying much more in rent than if you purchased a home or you’ve gotten further down the road and already in the planning stages of home ownership and I can help.

In today’s world when it’s often cheaper to own than rent, you could find yourself paying thousands of dollars each month for a place that isn’t building you and your family any equity and doesn’t have that extra bathroom you desperately need.  Most of all when seeing construction going on all over when you’re driving to work, I bet you’ve felt let down when you see that homes are getting build and you think you can’t afford one or don’t qualify for a mortgage.

Preparing for home ownership isn’t always the easiest thing to do, but with a little support, learning the facts and getting your FICO score as high as you can it’s easier that you might think.

Set your goal and don’t make the mistake of tapping into your savings for your down payment to buy that high ticket item, with the promise you’ll pay it back later.  Don’t focus on temporary satisfactions, because home ownership is definitely worth the extra effort. Keep a close eye on both your credit and your payments. When it’s time to apply for a home loan you’ll see the real long term benefits of home ownership for you and your family.

Owning your own piece of Oahu paradise isn’t easy, but it can be easier than you think and why I’ve created my blog. Here you can find out about all kinds of home buyer options that makes home ownership more affordable.

Home ownership in Honolulu was 56.5 percent in the second quarter of 2015. That’s down from 60.2 percent in the first quarter, but still higher than the 55.7 percent a year ago, according to most recent data released by the Census Bureau.

The home ownership rate for Honolulu, which has kept a median single-family home price of about $700,000, was the 10th lowest of the 75 largest metropolitan areas tracked by the Census, and I believe a lot of that is due to home buyers unaware of great financing options offered by USDA, FHA, VA and even FNMA. Each allows home buyers to purchase a home with as little as zero to three and a half percent down. With interest rate still close to historical lows and other home buyer option like the Mortgage Credit Certificate Program for First Time Home Buyers, it not impossible to own cheaper than renting and building substantial equity.

The home ownership rate although low isn’t the worst here in Oahu. The lowest was Los Angeles/Orange County, with a 48.5 percent, followed by New York at 49.1 percent, Las Vegas at 50 percent, San Jose at 51 percent and San Diego at 51.5 percent.

On the flip side the highest percentage of homeowners was in the North Port-Bradenton-Sarasota area of Florida, at 75.6 percent.

Home ownership is defined by the Census as the percentage of homes occupied by the owner, whether they carry a mortgage or not.

Honolulu’s home ownership rate was similar to the state’s overall ownership rate of 56.7 percent, which was the fourth-lowest rate among the states. Rates were highest in the Midwest at 68.4 percent and lowest in the West at 58.5 percent.

Nationally, home ownership fell to 63.4 percent, which is the lowest level since 1967, when Lyndon B. Johnson was president and “Hawai‘i Ponoʻī” was the State’s anthem. That’s just off the all-time low of 63 percent since the government began tracking the data in 1965.

The American dream of home ownership has become increasingly difficult in Hawaii and elsewhere, as many lost their homes, rented or moved in with family following the Great Recession of 2008, but the economy is building strength and even home buyers who were face with foreclosures can still get great financing options offered through the “Back to Work Program”, that understands bad things happen to good people sometimes. 

Subprime mortgages were commonplace and made home buying easy just a decade ago. In 2004, home ownership reached a peak of 69.2 percent in America. After the market collapse, though, financial institutions tightened their lending practices, while the rise in home prices in the past few years have kept many home buyers on the sideline, but if you let me represent you as your real estate agent, I’ll get the right team together that can help you achieve your dream of home ownership.

The average price per square foot for a three-bedroom house is $700, up almost 20 percent in the past year so, don’t delay putting off your equity building through home ownership by just paying rent. Home prices are likely to go up even further as the economy improves and interest rates are expected to rise with an improving economy, so right now it the best time to buy.

The Gift that Last a Lifetime

FORT WEAVER RD/E WEST LOCH RD NEIGHBORHOOD

EWA BEACH, HAWAII

E West Loah

Median Home Price: $$584,659

Principal & Interest Payment @ 4.00 Percent: $2694.00

First Time Home Buyers can reduce their payment further with the 

Mortgage Credit Certificate

Calculations are based on a 3.5 percent down payment

Average Rent: $2671.00

HOME OWNERSHIP TOOLS

HAWAII REALTOR GUY

Livingston-Homes-for-Sale

A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision-making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document click on “Open in New Window” located at the lower right corner;

click on “File”; then click on “Print”. In the center of the screen, you will have the option

to “Create A Printable PDF of the Presentation”.

FHA 203K

Your Home Purchasing or Refinancing & Renovation Tool

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMESTYLE

The Conventional Alternative to FHA 203K

Great for Real Estate Investors and Second Home Renovations

You Mortgage Loan Officer, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMEPATH RENOVATIONS

Rebuilding the Dream of Home Ownership

Fannie Mae HomePath has No Mortgage Insurance up to 95% LTV

Up to $35K for Home Improvements, Renovations or a Simple Remodel

Your Mortgage Loan Officer, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

USDA RURAL DEVELOPMENT

Up to $10K for Home Improvements, Renovations or a Simple Remodel

Your Mortgage Loan Officer, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document click on “Open in New Window” located at the lower right corner;

click on “File”; then click on “Print”.  In the center of the screen you will have the option to

“Create A Printable PDF of the Presentation”.

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