Kula, Maui Foreclosure House and Cottage For Sale

Kula, Maui is regarded by many people as heaven on earth due to its superb year-round climate, rolling grassy hills, fertile soil, and fantastic views of all of central Maui, the West Maui Mountains, Haleakala, and, of course, the North and South shore ocean views.

This painting entitled “a quiet moment” by Curtis Wilson Cost, who is one of Upcountry Maui’s most renowned artists, epitomizes the essence of Kula. Visit Curtis’ online gallery for all of his spectacular images.

During our most recent market peak in late 2006, the average home price in Kula was about $1,100,000 dollars and the median at about $850,000. For the year end 2010, these numbers are now at $750,000 as an average and $550,000 as the median sales price.

There has been a significant price correction in the Kula market as many REO/bank owned/foreclosed properties as well as short sales have been comprising a large percentage of the overall sales. Didn’t you hear the newsflash that Maui is now affordable? Speaking of which, here is my latest screaming deal in Kula.

676 Lower Kimo Rd. (MLS# 347312)  is 3 bed/2 bath home and 1 bed/1 bath detached cottage on a very private 2/3 acre lot with an ocean view towards the South listed at $527,000. View all property photos and complete description here.

This property is a little rough around the edges as many of the foreclosures are—there are a lot of beautiful fruit trees, flowers, and a mature lawn, but it is time to get out the weed whacker and chainsaw, and do a little pruning. The home needs an interior paint job and new appliances. The cottage could also use a little updating as well.

Why is this a great deal?

1. Location—Kula is the most highly coveted area of the highly desirable Upcountry Maui district. Talk to anyone in Kula and they just absolutely love it. This is an absolutely gorgeous lot that gently slopes towards the south and a gulch which affords the property even greater privacy.
2. House and Cottage—Having a legal detached cottage, like this property has, can add significant income to helping one make the mortgage payment. Many lenders will also use up to 70 % of the fair market value of the rental to add it to one’s qualifying income when obtaining new financing for a residential property.
3. Special Financing—This property is designated as Fannie Mae Home Path property which means that qualified buyers can finance the property with as little as 3% down payment, pay no appraisal fee (about $600 for a home like this), and no PMI.

What is PMI? Private Mortgage Insurance is added to any mortgage payment where the borrower has less than 20% down payment on a property. There is a formula that is used to calculate this amount, but for now let’s just say that it would add several hundred dollars a month to your overall payment and do nothing for you. This is an outstanding loan program that the government has enacted to get owner occupant buyers back into the market—another great reason to be buying on Maui right now.

Please contact me and ask me about why I think this is such a great deal. This is not my listing, but I do intend to represent a buyer on this fantastic purchasing opportunity, and this savvy buyer could be you!

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