C2 Hawaii

Month: January 2021

  • How Do I Apply for A VA Loan?

    How Do I Apply for A VA Loan?

    News & Info

    How Do I Apply for A VA Loan?

    If you are a discharged, retired, or separated veteran, an active serviceman, or the spouse of a veteran or solider and you are looking for information on a VA loan, this is the place for you. The first thing to understand is that C2 is a mortgage broker that works with private wholesale lenders to offer low-interest rates, lenient qualifications and more to borrowers looking for a loan. We accept credit scores as low as 580 and we offer $0 down payment with no loan limit. We offer loan financing options to assist you in refinancing your home, buying your home, fixing up your home, and more. The first step is to contact one of our licensed loan officers to see if you are eligible. Eligibility for specific home loan benefits is determined by your length of service, duty status, and character of service.

    You may be eligible for a VA home loan if you:

    • Are a member of the military, veteran, reservist, or National Guard member
    • Are a spouse of a military member who died while on active duty or because of a disability attained during service

    VA Home loans can be used to “buy a home or VA approved condo, build a home, purchase and improve a home simultaneously, make energy efficient home improvements, buy a manufactured home, refinance a VA guaranteed or direct loan to obtain a lower interest rate, refinance an existing mortgage loan or other indebtedness secured by a lien of record on a residence owned and occupied by the veteran as a home.”

    To determine your eligibility, you will can (or contact a loan officer)

    • Apply for a Certificate of Eligibility (COE) – VA Form 26-1880.
      • Spouses must apply via mail using VA Form 26-1817and any additional required documents. Click here to find the correct mailing address for your state.
      • The certificate verifies that you are eligible for a VA-backed loan. In order to apply for a COE, you will be required to provide evidence of your service, spouses service, etc. If you are a veteran or current/former National Guard or Reservist who has been activated Federal active service, you will need to provide a DD Form 214 (DD214.)
        • A DD214 isa Military Service Record that verifies your service and retirement, discharge, or separation. Depending on your situation, you will request a Certificate of Release, Discharge from Active Duty form, or Separation Form.
          • If you are an active duty service member, you will be required to present a current statement of service signed by one of the following: the adjutant, personnel office, or commander of the unit or higher headquarters. The statement must include the following: full name, social security number, date of birth, entry date on active duty, the duration of any lost time, the name of the command providing the information.
          • If you are a current National Guard or Reserve member who has never been Federal active service, you will need to provide a statement of service signed by the adjutant, personnel office, or commander of the unit or higher headquarters. The statement must include all of the same information an active duty service member must submit, but also a total number of creditable service years.
          • If you are a discharged member of the National Guard, you will need to provide the NGB Form 22 or NGB Form 23, depending on your situation.
          • If you are a discharged member of the Selected Reserve who has never been active for Federal active service, you will need to provide your latest annual retirement statement and evidence of service.
          • If you are a surviving spouse who is not receiving benefits, you will need to submit VA form 21-534, DD214. Proof of marriage, DD Form 1300 or death certificate, and submit via mail.
          • If you are a surviving spouse who is receiving benefits, you will need to provide the VA form 26-1817, DD214, and both the veteran and spouses social security numbers.

    Applying for a loan can be an intimidating and harrowing process. At C2, we aim to provide you amazing service and a great rate. We understand the sacrifice that veterans, soldiers, and families make every day. We can assure you that at C2 Hawaii, you will work with a licensed loan officer that cares about you and your situation. For more information on our VA Loan process click here.

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  • What You Need to Know About VA Home Loans

    What You Need to Know About VA Home Loans

    News & Info

    What You Need to Know About VA Home Loans

    A VA home loan is a home-mortgage option available to United States Veterans, Service Members, and spouses. VA loans are issued by qualified lenders and are FHA/VA approved. VA Benefits include purchase loans, Cash Out Refinance loans, Interest Rate Reduction Refinance Loan (IRRRL,) Native American Direct Loan (NADL) Program, Adapted Housing Grants, and more. Purchase loans assist in the purchase of a home, often requiring no down payment or private mortgage insurance.

    C2 Financial is not only the second largest mortgage broker in the United States, but the co-owner of C2 Hawaii, Joe Schmitz, is a Navy Submarine Veteran. At C2 Hawaii, we understand what it means to serve. Not only are you, the soldiers & sailor, sacrificing, but so are your families. That’s why when looking to mortgage your new home or refinance, you can turn to a company who understands you, understands your situation and can deliver what you deserve.

    Hawaii is home to a high concentration of heroes. C2 Hawaii aims to save them as much money as possible and ensure every person is covered, no matter what their story is.

    What we offer:

    • 100% Financing No Loan Limit
    • $0 down payment
    • $0 Cash to Close Option: 
    • No Mortgage Insurance
    • Lower Interest Rates
    • Lenient Credit Requirements (allowing scores as low as 580)
    • Easier qualifications
    • Funding Fee – a fee charged to a veteran by VA, which helps finance the VA home loan program. This fee can be financed and refunded if you are approved for 
    • Refinancing: streamlined refinance with no appraisal, income, or asset documents required. All you need is zero 30 day late payments for a year. No cash to close and skip up to two months’ payments,
    • Cash out refinances: 100% loan to value cash-out refinances available only through VA loan. The cash can be used for any purpose.
    • Jumbo loans wiht $0 down payment

    What is DD214 and why is it necessary?

    DD214 is a portion of Military Service Records that may be a Certificate of Release, Discharge from Active Duty form, or Separation Record. A DD214 is issued when a soldier retires, separates, or is discharged from duty. The records are needed to verify military service benefits, retirement, employment, and membership in veteran’s organizations. Veterans can request their DD214 online. To complete the form the following information is needed: complete name, service number, social security number, branch, dates of service, birthdate and birthplace.

    Additional benefits of VA home loans:

    • VA loans are reusableand you may be able to obtain more than one at a time.
    • Most VA home loans are intended for “move-in” ready homes. To find VA approved condos, visit the US Department of Veterans Affairs site.
    • Loans won’t be denied basedon low credit scores and eligibility usually only looks at the past 12 months of credit history.
    • Even if you have a history of bankruptcy, you may still be eligible for a loan.
    • If you have a service-related disability, you may be able to waive your funding fee, which will reduce costs.

    Reasons you may not prequalify for a VA Loan:

    You may not qualify for a VA loan if you have a history of bankruptcy or foreclosure. However, fear not. You are still eligible for a VA loan. It may take more time before lenders will be willing to consider you, around 1-2 years depending on the type of bankruptcy or foreclosure. In contrast, it could take between 4-7 years to be considered for a conventional loan following a bankruptcy or foreclosure. During the “wait” period, it is critical to focus your efforts on improving your credit score.

    You also may not qualify if your employment is not considered sufficient. As long as you have at least two years of a full-time stable employment, you should be smooth sailing. It is important to plan ahead for a VA loan. If you know you are going to need to take a mortgage loan, do your best to find a stable full-time salaried job. A low credit score may also affect eligibility. C2 will accept credit scores as low as 500. However, attempt to maintain a good credit score or improve it. Talk to your bank for tips on how to improve your credit score.

    Veteran Resources:

    Visit DAV.org, an organization where Veterans and their families can claim benefits, find local National Service Offices, and more. Since a history of stable employment is important, your local National Service Office offers employment resources.  Or, you can visit benefits.va.gov, the site of the U.S. Department of Veterans Affairs. Our monthly payment calculator allows you to estimate your monthly payment based on the loan amount, interest rate, and term length in years. A C2 Hawaii is the right option when it comes to mortgage or refinancing. We see veterans being taken advantage of regularly, and we are on a mission to repay those who have sacrificed for us by putting money back into their pockets. Click here for more information on our VA Loan process.

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  • 5 Benefits Veterans Need to Know Before Getting a VA Loan in Hawaii

    5 Benefits Veterans Need to Know Before Getting a VA Loan in Hawaii

    News & Info

    5 Benefits Veterans Need to Know Before Getting a VA Loan in Hawaii

    VA Home Loans are one of the most widely used loans for veterans and they are available for: service members, eligible surviving spouses, and Veterans.
    One of the top mortgage lenders in Hawaii is C2 Hawaii, an authorized lender of VA loans.
    C2 Hawaii is founded by Veteran, Joe Schmitz, he has been in the lending industry for over a decade and prior, served in the Navy for 6 years. Schmitz says, “I look forward to helping Veterans and their families make their home owning dreams come true. Our team has some of the best trained VA specialist loan officers in Hawaii and as a Veteran, I know firsthand the benefits this type of loan can provide.” Since the VA guarantees “a portion of the home against loss” lenders can provide more favorable terms to eligible borrowers in Hawaii.

    1. Veterans receive the benefit of no down payment.

    Yes, you read that right, no down payment. Qualified buyers in Honolulu County can purchase a home up to $721,050 with $0 down. VA loan limits are adjusted for more expensive markets, such as Hawaii, to allow veterans to borrow more money without having to fork out money for a down payment. While standard loans require a typical minimum of 5 percent down, an amount that can take years to save, Veterans and their families do not have to pay those hefty upfront costs. However, there is no maximum purchase amount for VA loans, this is just the ceiling for full financing

    1. We can count your BAH (Basic Housing Allowance) as income

    BAH is paid monthly to eligible service members when government housing is not available. At C2, we can count that as effective income to put toward the amount a potential borrower can spend on a mortgage each month. However, BAH is different for everyone. The amount is based on rank, dependency status, and permanent duty station zip code.

    1. VA Loans Are eligible for lower interest rates

    With VA loans being backed by the federal government, interest rates are usually much lower than conventional loans. However, credit scores are also taken into consideration when applying for a VA loan so the interest rate will vary from person to person. Although, even with a low credit score, a qualified VA loan borrower may enjoy the same rate as someone with a top credit score applying for a standard loan.

    1. Closing costs can be lower for Veterans

    The VA limits the closing costs that lenders charge veterans. Some of the costs a Veteran is not allowed to pay includes: attorney fees, brokerage or “buyer broker” fees and termite reports.

    1. Your VA loan is reusable!

    Have you already used a VA loan at another duty station? No problem! Your VA loan is reusable again and again if the previous loan is paid off. There is no limit on the times a qualified VA loan borrower can use his/her loan.

    Are you an active military member, veteran, or family member looking to purchase a home or refinance your current one? We would love to get to know you and help you through your mortgage process. Click here to receive your free personalized rate from one of our local certified officers.

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  • Defining Those Intimidating Industry Terms so You Can Confidently Take a Loan in Hawaii

    Defining Those Intimidating Industry Terms so You Can Confidently Take a Loan in Hawaii

    News & Info

    Defining Those Intimidating Industry Terms so You Can Confidently Take a Loan in Hawaii

    Let me paint the picture for you. You have recently decided you need help financially, whether it is to buy your first home, buy your second home, invest or what have you. So, you decide to do a little research and get bombarded by terms like ARM, Fixed Rate, Jumbo Loans, USDA, FHA, Fannie-Mae, and the list goes on. Plainly put, the process can be overwhelming, especially if you are not as familiar with how the industry its workings. What is more excruciating? You are in Hawaii or planning on relocating there, and all you are reading is how expensive Hawaii is, and how different its market is. .

    Fear not, C2 Hawaii is here to explain and define those terrifying industry words. First and foremost, let us define the difference in types of loans.

    Conventional Loan: A conventional loan is a loan that does not belong to a specific government program such as the Federal Housing Administration (FHA,) the Department of Agriculture (USDA,) or the Department of Veterans Affairs (VA.) Conforming conventional loans are required to conform to Fannie Mae and Freddie Mac requirements and loan limits. Fannie Mae, or the Federal National Mortgage Association, is a U.S. government-sponsored enterprise that provides financing to mortgage lenders to provide affordable mortgage funding. Freddie Mac, the Federal Home Loan Mortgage Corporation, is a public government-sponsored enterprise meant to maintain mortgage financing in the secondary mortgage market by purchasing mortgage loans from lenders so the lenders can provide loans to more borrowers. Requirements of conforming conventional loans include the credit score of the borrower, minimum reserve requirements, and more. A non-conforming conventional loan is a mortgage that exceeds loan limits, such as a jumbo loan. Conventional loans usually offer the best interest rates and loan terms.

     

    FHA Loans: An FHA loan is considered a type of non-conventional loan through the Federal Housing Administration. FHA loans are typically for borrowers who have a high debt-income ratio, cannot afford a high down-payment or have poor credit, though anyone can qualify for an FHA loan. FHA loans are meant to provide affordable mortgage loans and housing to those with less financial credibility, thus, the requirements are different and usually lower.

     

    VA Loans: A VA loan is a loan for veterans, military soldiers, and spouses of deceased soldiers. VA loans offer many benefits such as easier qualification, no down payment, and lower interest rates. Borrowers with a history of bad credit due to bankruptcy, foreclosure, etc. or just poor credit in general can more easily obtain a VA loan and can do so with a shorter recovery period than a conventional loan. To learn more about VA loans, visit the U.S. Department of Veterans Affairs.

     

    USDA Loans: A USDA loan is a loan through the U.S. Department of Agriculture. USDA loans are typically for low to moderate income borrowers living in rural areas. The USDA creates affordable housing opportunities in rural areas to promote economic prosperity and improve the quality of life in rural areas through rural development. The USDA guarantees the loan, usually resulting in no down payment and lower interest rates. To learn more about USDA loans, visit the U.S. Department of Agriculture.

     

    Jumbo Loans: A jumbo loan is a home loan that exceeds the loan limit, making it a type of unconventional loan. In Hawaii, the loan limits are much higher than the industry standard due to the high prices of housing. As mentioned by the Wall Street Journal, the limit in Hawaii is usually $636,150 or higher, according to city limit. Jumbo loans are associated with higher risk for the lender, therefore, rates tend to be a bit higher. Additionally, the loan will be held by the actual lender of the loan and be considered a portfolio loan.

    Portfolio loan: A portfolio loan is an unconventional loan and is designed to get borrowers financing for situations considered “not normal.” For example, recent credit issues, unique property types that do not meet guidelines, commercially zoned property, investment loans or loans for a foreign national are examples of outside-the-norm reasons someone might get a portfolio loan. A portfolio loan is held by the lender and is given out according to personal story and situation. Not only is a portfolio loan a way for the lender to help those in unique circumstances, but also to invest in their local economy.

    Adjustable-Rate Mortgage (ARM): ARM is a loan with an interest rate that changes. ARMs usually start with lower monthly payments than a fixed-rate payment, but, monthly payments could increase dramatically even if the interest rate has not changed. Additionally, the payments could stay the same even if your interest rate decreases. Paying off your ARM early may result in fines, but the possibility of owing more than you borrowed is very real. It is important to understand ARM and how your monthly payments may change before choosing an ARM.

    Fixed-Rate Mortgage: A fixed-rate mortgage is different from an ARM because the interest rate is set at a fixed amount and will not change.

     

    Refinance: What exactly is the act of refinancing? Refinancing is an option when circumstances change and another loan is needed to change things. It is the process of swapping out loans to move the debt amount to a different lender or loan. There are many reasons people may choose to refinance, whether its saving money or obtaining lower payments.

     

    Now that you understand the industry terms, you can more confidently decipher which financing option may be right for you on your adventures in Hawaii. If you are planning on moving here, aloha. If you still have questions, you can easily contact C2Hawaii to work with certified loan officers that understand the Hawaiian market.

    Click here to learn more. 

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  • How to Navigate the High Cost of Living in Hawaii

    How to Navigate the High Cost of Living in Hawaii

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    How to Navigate the High Cost of Living in Hawaii

    The fact that Hawaii is expensive is a fact we are all (unfortunately) aware of. The average living expenses of paradise are two-thirds higher than the rest of the United States. Despite a higher average yearly wage, the country has one of the highest tax rates in the country. According to Expatistan, the average monthly rent for a 900 Sq. ft. furnished accommodation in a relatively-normal-priced neighborhood is around $2,114. Not to mention, they estimate 1 liter of gas costing $.81., making it over $3 per gallon. This is due to the oil dependency on the United States, making utilities cost an astronomically higher amount than they would in the rest of the nation. To top it off, a dinner out for two costs at least $60 and up. If you are wondering why it’s so expensive, it all comes down to the dependency on imports. Hawaii imports everything, resulting in a 4% excise tax on most everything.

    Housing costs in Hawaii are expensive and not getting any cheaper. In 2015, the median sale price for a home in Oahu was $730,000, which was up 7.6% from 2014, and up 17% from 2010. As of April 2017, the median sale price for single-family homes in Oahu was $752,000, up 4% from 2016. Causes of the high prices have been argued to result from a high demand for housing, a low supply of housing due to development and building regulations, and the high price of electricity.

    Despite all of these staggering statistics, life in paradise is possible. There are plenty of options available to homeowners or potential homeowners living in Hawaii. First, the loan limit is significantly higher in Hawaii to adjust to the high housing prices. Conventional loan limits in 2017 vary according to county and unit size. For a single-family home in Hilo, the loan limit is $636,150; in Honolulu, it’s $721,050, in Kalawao, it’s $657,800, in Kauai, it’s $713,000, and in Maui, its $657,800. Due to the many conditions effecting house price and land price, price per square footage is not necessarily an indicator of sale price. Other contributors to price include location, view, construction quality, utilities, lot size, construction age, land tenure, and more. Often, if you are considering building a home, you must maneuver around the hard lava rock, the uneven terrain, and the construction regulations.

    The Hawaii market moves very quickly. In Q1 of 2017, there was a total of 545 Big Island homes sold. It is important to have financing in order before you begin your home hunting. Additionally, it is important to find a Hawaii-based lender that is familiar with Hawaii regulations and standards, such as the home value according to multiple specs instead of acreage and square footage, as mentioned above. C2 Financial Hawaii is in Honolulu County and has certified loan officers with the right expertise and knowledge to help you through the process.

    For those looking to obtain financing for their home, C2 Financial Hawaii offers jumbo loans, conventional loans, refinancing, construction loans, rehab loans, reverse mortgage, and more. Not to mention, there are VA benefits for veterans, soldiers and surviving spouses. C2 offers pre-qualification and no-obligation consultations where you can work with a certified loan officer without pressure. Additionally, there are pre-approvals, realtor referrals, assistance with credit repair (including rapid rescoring,) and education to empower borrowers to make the best decisions financially.

    Despite the high prices and the expensive goods, enjoying life in Hawaii is possible. Borrowers need to do plenty of research on how to maneuver the high costs with certified lenders such as C2 Financial. To learn more about the options available to you, click here to speak to a certified loan officer.

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  • Considerations Before Taking A Reverse Mortgage In Hawaii

    Considerations Before Taking A Reverse Mortgage In Hawaii

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    Considerations Before Taking A Reverse Mortgage In Hawaii

    Have you recently been contacted about taking out a reverse mortgage on your home? Unfortunately, with the 4% excise tax and high property values in Hawaii, it can be a financial struggle for seniors without a regular income following retirement. Before you make any decisions, do as much research as you can. It is important to first answer the fundamental question: What is a reverse mortgage?

    A reverse mortgage is a loan that allows homeowners over the age of 62-years-old to convert a portion of their home equity into tax-free cash without having to sell, relinquish ownership, or make monthly payments. The older a borrower is, the higher the loan amount may possibly be. There is no maturity date for the reverse mortgage loan. This means there are only three circumstances in which a loan repayment is due; the first, is if the home is sold, the second, if the owner passes away, and the third, if the borrower is not keeping up their obligations to the lender. Obligations include keeping up with insurance, taxes, property upkeep, and living in the home as a primary residence. If you are unable to keep up with the obligations, you could end up losing your home to foreclosure. However, a reverse mortgage can be the correct decision to increase a retiree’s financial flexibility.

    Often, parents have plans to pass their home down to a child. If that is the case, it is best to not take a reverse mortgage. Many lenders may assure you that the home will be saved, but in the case of a reverse mortgage, the home is usually sold to pay off the reverse mortgage, thus, eliminating the ability to pass it down. Additionally, there are higher costs associated with reverse-mortgage loans. The fees may include loan servicing fees, closing costs, insurance premiums, etc.

    Reverse mortgages have a bad reputation, but can be a good financial move if enough research is dedicated to understanding the process. To decide if a reverse mortgage is right for you, ask yourself a few questions. Do you plan to leave the home to anyone? Do you have long-term plans for the home? Will you be able to pay off the loan by selling the house? Is this the correct option for your situation, or would a home-equity loan work better for you? Reverse-mortgage eligibility requires the borrower to be 62 years or older, for the home to be the primary residence, that there are no delinquent federal debts, that the home is owned outright or has a considerable amount of equity, that the home meets FHA property standards, and that all home insurance and property taxes are still being paid regularly.

    If you are still considering a reverse mortgage, make sure you understand the benefits and facts. The first benefit is you will not need to make monthly payments towards the loan, as stated above. The second benefit is you remain the owner of the home and property. Thirdly, you can use the loan however you please. Should you need the money to purchase a new car, pay for long-term care or take that dream retirement vacation, it is up to you. Unfortunately, we are all aware of the high cost of living in beautiful Hawaii. A reverse mortgage could be just the thing for you if you are struggling financially or just want some extra money. Additionally, there is no payment penalty for heirs, meaning heirs are not responsible for paying off a reverse-mortgage loan. Just note, the house will not be able to be passed down to them. Lastly, a borrower will never owe more than the value of their home.

    If you have recently retired to Hawaii or have lived in Hawaii for years and are retiring, it is great to understand how a reverse mortgage can benefit you. If you decide to take a reverse mortgage, you can choose to receive the funds as a single lump sum, as a monthly payment, as an equity line of credit, or as a combination. However, if you have a fixed-rate mortgage, you will get a lump-sum. Should you decide to go through with a reverse mortgage loan, you will be required to attend a counseling session with the FHA-approved reverse mortgage counselor. This session will help you understand the process fully before you decide.

    The best way to think of a reverse mortgage is as the reverse of a traditional loan. Instead of the borrower making monthly payments, the lender pays the borrower. Hawaii is the perfect retirement location. It offers island life, the spirit of Aloha, and friendly people. Do not let financial strain keep you from living life. A reverse mortgage could be the perfect move towards financial flexibility. However, it requires extensive research to decide if it is a financially responsible decision for your personal situation.

    To learn more about the options available to you, click here to speak to a certified loan officer.

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