Kauai Homebuyer Seminar Highlights Financing and Kauai Foreclosures

Our first round of seminars for Kauai residents entitled, “Home Ownership 101” was well attended this week. Over 70 attendees came to our presentation that focused on:

1. The process and sequence of purchasing a home
2. Programs and tax benefits for first time home buyers
3. FHA, VA and USDA rural loans – (These are the loans available in the market today for owner occupants with little or no money down)
4. The escrow process (real estate transactions in the state of Hawaii use a neutral third party entity called an escrow company that provides support to both parties and keeps the transaction on track. Escrow provides title insurance to the buying party as well)
5. Kauai Short Sales and Foreclosures and things buyers need to be careful about when purchasing these types of Kauai distressed properties
6. Smarter Banking and Better Budgeting – keys to getting your financial house in order and raising your credit score to qualify for the best loan.

At the conclusion of each session we had a long time for questions and answers. Many of the questions had to do with loan programs and the first time home buyers Tax Credit. One good question came from a couple who had inherited a home, along with their brother and sisters, and wanted to know if they could still qualify for the first time home buyers Tax Credit that requires a home to be in escrow by April 30th. Here are the details of that TAX CREDIT PROGRAM. Our notion was that the couple could qualify but my lender collaborators, Ellen Henderson and Lisa Ledesma from Wells Fargo Home Mortgage, were going to confirm the answer. Another good question had to do with using co-borrowers to help improve the possibility of securing a loan. Whenever you bring a co-borrower into the mix you must take the good with the bad, or hopefully, the good with the good. In other words, if you count the co-borrowers income, you also must count their credit score. So for example, if your friend or family member who wants to help you has great credit but limited income, or vice-versa, you will be taking the good with the bad into consideration when qualifying for the loan.

The notion of getting a great value by buying a Kauai short sale or Kauai foreclosure property must be tempered by some of the risks involved. When purchasing an REO property from a bank, a buyer will not receive a seller’s disclosure and will be buying the property AS-IS. Therefore, the buyer must rely on their buyer’s agent and together perform thorough due diligence so the buyers know exactly what they are getting into, and make their decisions accordingly.

Here are some additional links that may be of value to first time home buyers. The possibility of home ownership for local residents in Hawaii is increasing as our market prices adjust. I’m here to help if you need assistance.

• FHA loan programs
• VA loan programs
• Improving your credit scores
• Understanding the escrow process
• Hawaii Buyers Guide – Important Facts to Know

We’ll be holding these seminars throughout the island for the next couple of months. Send me an email if you wish to be notified about our next set of events.