This Web page provides information for Buyers. Welcome!

Buying a house it is a complicated process which requires a lot of efforts and attention from the buyer. With lower home prices, lower mortgage rates and big discounts on foreclosures, buyers have plenty of incentives to get into the   real estate market in Hawaii. Although it is easy to get caught up in the gloomy national housing trends, home-buyers in Hawaii should be paying more attention to what is going on in the local market where they are considering purchasing property. After all, home prices in Hawaii are  almost stable that is different from the rest of the country. This Web site will help you navigate via real estate market in Oahu. and here you can find information about home buying, home financing and settlement process. If you have any questions, please contact me. Mahalo!

Links and Info

Buying a Home (by Elizabeth Weintraub)

About Financing

Getting Started

New $8,000 Tax Credit for Home Buyers

Figuring out if you are ready to buy a home by weighing the benefits is exciting. It's always a stressful time, no matter how well you plan for it. But doing your homework will definitely pay off in the long run.

Attention potential home buyers! Take advantage of an $8,000 tax credit toward the purchase of a principal residence for first-time buyers on or after January 1, 2009 and before December 1, 2009. And to make the deal even better, the credit does not require repayment. It's all part of the American Recovery and Reinvestment Act.

Learn about the new 2009 tax credit and legislation

HUD: Tax Credit Can Be Used on Closing Costs

US Department of Agriculture Program

Working With Real Estate Agents

The USDA Program helps first time home buyers and former homeowners buy houses with a USDA Guaranteed home loan.  This loan currently offers loans with the following criteria:

• 102% Financing which means NO MONEY DOWN
• Closing costs can be included in the loan in some cases
• All credit types are welcome to apply
• One of the only no money down options still available.
• Loan can be used as a construction loan, purchase loan, or a refinance loan when the current loan is also a USDA loan

• Applicants for loans may have an income of up to 115% of the median income for the area.  Area income limits in Hawaii  for this program are here.

Read more: Home Buyers Turn to USDA for Mortgages

Finding a good real estate agent / broker is essential to enjoying a painless real estate transaction. The saying is "20% of the agents do 80% of the business," and it is true. The question is how can you find a good real estate agent? The best agent for you doesn't necessarily work at the largest brokerage, close the most transactions or make the most money. The best agent for you is an experienced professional who will listen to you, conduct himself in an ethical manner and knows your market.

1. REALTORS® and Real Estate Agents

All Realtors® are licensed to sell real estate as an agent or a broker but not all real estate agents are Realtors®. Only Realtors® can display the Realtor® logo. Realtors® belong to the National Association of Realtors and pledge to follow the Code of Ethics, a comprehensive list containing 17 articles and underlying standards of practice, which establish levels of conduct that are higher than ordinary business practices or those required by law. Less than half of all licensees are Realtors®.

2. Referrals

Most real estate agents stay in business because satisfied clients refer them to friends, family, neighbors and co-workers. Ask the people around you who they have used and ask them to describe their experiences with this real estate agent. Successful agents make customer satisfaction their number one priority and put their customers' needs before their own. Try to find an agent who goes above and beyond his responsibilities. He'll be the agent whose praises your friends sing loudest.

3. Search Online for Agent Listings

AmeriDream®, Inc. Program

There are plenty of Web sites that will refer agents to you but that is no assurance of quality. The agents they refer are those who have paid the Web site owners a fee to be listed in their directory. A better bet is to Google the top real estate companies in your area, go to those Web sites and look up profiles of individual agents at offices near you. Agents who are experienced will tell you but newer agents might have more time to spend with you. Look for customer testimonials.

FHA Down Payment Grants for Homeowners

AmeriDream®, Inc. is a non-profit organization dedicated to helping people find affordable housing. Part of the AmeriDream mission is to help low and moderate income families buy homes by offering down payment assistance. Buyers who are qualified for an FHA loan but don't have the money for down payment and/or closing costs are eligible to apply for AmeriDream down payment assistance:

4. Attend Open Houses

By going to open houses, you can meet real estate agents in a non-threatening working environment and interact with them. Collect business cards and make notes on them. If you're thinking about selling your home, pay attention to how the agent is showing the home. Is she polite and informative; appear knowledgeable? Does he hand out professional-looking promotional material about the home? Is she trying to sell features of the home? Or is he sitting in a corner reading a book, ignoring you?

• A down payment gift of up to 10% (typically 3%-6%) of the purchase price.
• A true gift-the down payment assistance is not repaid by the home buyer
• Home buyer must have an approved FHA home loan or pre-approved FHA loan.

5. Track Neighborhood Signs

Pay attention to the listing signs in your neighborhood. Make note of the day they go up and when the sold sign appears. The agent who sells listings the fastest might be better for you than the agent with the largest number of "for sale" signs. Results speak volumes.

For Military Buyers

6. Using Print Advertising

Top VA Loans Benefits

Real estate agents run real estate ads for two purposes. The first is to sell specific real estate. The second is to promote the real estate agent. Look in your local Sunday newspaper for ads in your targeted neighborhood. Then look up the Web sites of the agents who are advertising. These agents could be specialists in your neighborhood. Call and ask them about their experience.

To participate in the AmeriDream down payment assistance program, buyers should:

100% Financing

$625,500 Loan Amount

• Get pre-approved for an FHA mortgage and start looking for a home.

• Make an offer on the home you want to buy and get a ratified contract.

• Your loan officer applies for the AmeriDream down payment assistance program on your behalf.

• You will receive a "Notice of Gift Approval" from AmeriDream.

• Close the deal on your new home.     Read more

Confirm with your lender if this program is still available

No Mortgage Insurance

7. Recommendations from Professionals

Reduced Closing Cost

Ask other real estate agents for referrals. Agents are happy to refer buyers and sellers to associates, especially if the service you need is not a specialty of the agent who is referring you. Some agents specialize in residential re-sales while others work exclusively with new home builders. Other agents sell only commercial or investment property. Mortgage brokers are also a resource for agent referrals as many brokers have first-hand knowledge of exceptional agents. Pros tend to refer pros.

Easy to Be  Qualified

Low Cost Refinance

620 or Higher FICO Score

VA Jumbo Loan < $1 ML

No Prepayment Penalty

Any question about VA Loan? Contact Me NOW!

Another popular financial programs are: Hula Mae created by the Hawaii State Legislature in 1979 for families of low and moderate income, Native Hawaiian Housing Loan Guarantee and Single-Family Housing Guaranteed Loan for low and moderate income families, among others.

VA Loan Amount

For Single-Family Home, $0 Down, Maximum Up to:

Hawaii - $625,500

Home Buying Mistakes

Five Myths Standing Between You and your First Home

Honolulu - $783,750

Home buyers hope they have made the right choice when they find that dream home. After planning, searching and successfully buying that new home, nobody wants to later discover it was all a big mistake. These tips will help home buyers avoid the costly mistakes that often plague the less:

Kalawao - $656,250

MYTH #1: I can afford a 20% down payment

Kauai - $775,000

Maui - $681,250

You can still purchase a home with little or no money down, and may be able to qualify for a larger loan amount than you imagined.

6 Reasons Why It's Still a Good Time to Buy

The housing market is looking healthier. Here are six reasons why now is the time to jump into the market.

Mortgages and Home Financing Tips

MYTH #2: I need a strong credit history to qualify

Shopping for the best mortgage rate can mean navigating a sea of confusing terminology, and understanding the lingo is only the first step. Buyers should feel comfortable with mortgage lenders and the financing choices selected should fit their individual situation. No two buyers' financial needs are the same.

Relaxed approval guidelines accommodate past credit challenges, limited savings and lower income.

1. Uncle Sam is willing to help.

MYTH #3: It is cheaper to rent

First-time buyers (defined as anyone who hasn’t owned a home in the last three years) are entitled to a maximum $8,000 tax credit; interest rates are at record lows; and the Federal Reserve is doing its best to make mortgage loans available.

Monthly mortgage payments may in some cases be lower than rental payments you now make. And unlike rent, fixed-rate¹ principal and interest payments won't increase for the life of your loan

MYTH #4:  The mortgage process is complicated

Find professional loan officer who can guide you through every step, smoothing the way with reduced documentation, faster approvals and streamline processing

2. People have to live somewhere.

About 800,000 new households are formed each year in this country, ensuring that the housing market will tighten, even if the economy doesn’t soar.

Purchase Offers and Negotiations

MYTH #5: I wont be able to handle monthly payment

How you write a winning offer depends on your marketplace and whether it is a seller's or buyer's market. Find out what needs to be listed in your offer to give you the edge. As a buyer, how do you write contingencies that will let you cancel the deal and get your deposit back?

Lender will consul with you to help you determine which home financing recommendation you can manage comfortably. Plus every payment can build equity, offer tax benefits² and assure a secure future for your family.

¹Adjustable-rate mortgage payments may vary over the life of the loan

² Consult with your tax adviser (From Renee Phillips presentation)

3. Borrowers leverage their investment.

If you put $10,000 into the stock market and it earns 10 percent, you’ve earned $1,000. If you put $10,000 down on a home and its values increases 10 percent, you’ve made $10,000.

4. When prices come back up, you will have instant equity.

Home Inspections and Disclosures

US Department of Housing and Urban Development in Hawaii

Knowing exactly what you are buying is probably the biggest hurdle to jump in a real estate transaction yet many people gloss over due diligence and end up regretting it. Here is your guide to an assortment of inspections and disclosures to consider and conduct before you hand over cash to close.

Tax Credits = Cash

In parts of the country where foreclosures have driven down prices, better times will mean the price of the home you buy will rise rapidly.

If you earned $41,646 or less in 2008, you may be eligible for an IRS Earned Income Tax Credit refund of up to $4,824. What will you do with all that extra cash? Why not save for a down payment on a home?

5. Mortgage costs stay the same.

100 Questions & Answers About Buying a New Home

If you get a fixed-rate mortgage, the monthly payment stays the same – while everything else, including rent, goes upward.

Part I - Getting Started

Part II - Finding Your Home

Part III - You've Found It

Home Design, Improvements and Maintenance

Part V - First Steps

6. You own it.

Every home is special because it's where you live your life. Homes reflects their owner's personality. Most people wants to live in comfort, if not necessarily in style, and many enjoy designing a space. So even though trends come and go, good basic home design can last for years.

Part VI - Finding the Right Loan for You

There is something comforting in the notion that your home is your own. You can paint it any color you want, let the dog run in the back yard and hang a swing for the kids in the front.

Source: The Wall Street Journal, June Fletcher (03/27/2009)

Part VII - Closing

Part VIII - How Can HUD and FHA Help Me

Part IX - Mortgage Insurance

Part X - FHA Products

Evgeny V. Dafner, Ph.D.

Principal Broker

Finding Real Estate Agent On-Line

Please be mindful when you use the Internet to select the Realtor Estate Agent  on-line who will find a dream home for you in the future. Most of Web sites which you will find at the top pages of search engines are supported by agents whose role in the real estate is just the Web site marketing and leads generation. They make money only on selling these leads to another agents receiving back a referral fee. This fee is negotiable between agents and they may vary between 25 to 50%.

The Professional Real Estate Agents dedicate all his time and effort to make YOU happy satisfying YOUR real estate needs. The brokerage fee is a major source of income for Professional Real Estate Agents. They spend time and invest money in education to improve knowledge to provide YOU with the best possible service. You should interview your on-line Real Estate Agent and ask if he or she will personally take care about you or will refer you to another agent who will take care about you. If the agent will refer you to another agent, ask  what will be the referral fee to the recipient agent. The common referral fee is 25% and agents who are involved in the selling process will never charge more than this amount.  Take care about your agent who is loyal and dedicated to you. Please contact me if you have any questions.

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If you know of anyone looking to buy or sell a home, I'd be honored to assist. The greatest compliment to me is your enthusiastic referral! Mahalo.

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