There is no state like Hawaii. Its natural beauty is unmatched and it has a rich cultural heritage. The local landscape and culture are great reasons to seek a new home in the state. If you are considering buying a home in Aloha State, you need a reputable mortgage lender. The right mortgage lender can make the difference between a successful home purchase and one that leaves you wanting more. Here’s Benzinga’s guide to the best mortgage lenders in Hawaii.
The 5 Best Mortgage Companies in Hawaii
Who are the best moneylenders in Hawaii? Here are Benzinga’s picks.
1. Best for first-time home buyers: Bank of Hawaii
Bank of Hawaii allows you to work with an in-person lender who knows the local landscape. First-time home buyers need a lender who will educate them on the mortgage process. Bank of Hawaii will guide you through the process and ensure you choose the right mortgage for you.
Bank of Hawaii offers a range of home loans, including FHA, VA, conventional, and jumbo loans. Bank of Hawaii also works with state homeownership programs.
2. Best for Independent Professionals: Griffin Financing
Griffin Funding specializes in home loans for independent professionals. Independent professionals sometimes encounter difficulties in obtaining a mortgage. Griffin Funding offers a bank statement mortgage, which may be suitable for the self-employed.
A bank statement mortgage means you may qualify based on your personal or business bank statements. Griffin Funding allows you to use 1 month, 12 months or 24 months of bank statements. It allows down payments as low as 10% and you can qualify with a credit score of 620 or higher.
3. Best Online Lender: Rocket Mortgage®
Rocket Mortgage® makes it easy to get a mortgage from the comfort of your home. Its online platform is intuitive. It walks you through the app and you can even sync it with your bank so they can check your income without much hassle.
Pre-approval is fast and you can schedule closing directly through the platform. If you have any questions, you can contact a credit expert by phone or chat. Rocket Mortgage® offers conventional, FHA, and VA loans.
4. Best for FHA Loans in Hawaii: Guild Mortgage
Guild Mortgage has been in the mortgage business for 60 years, making it an ideal choice for those looking for an FHA home loan.
FHA loans have specific requirements, so it’s important to work with an experienced lender.
You can apply online or with a loan officer at a branch.
If an FHA mortgage isn’t right for you, Guild Mortgage offers VA, USDA, Conventional, Jumbo, and Exclusive mortgage products.
5. Best for VA loans: Veterans United
Veterans United makes it easy to get a VA loan. You can start the loan process directly from their website or by calling one of their always available representatives.
Why is Veterans United a great choice? She specializes in VA loans. He has advisors from every military branch to make sure he takes great care of service members and veterans. It is the best VA lender in the country because of its expertise and excellent service. Offers VA purchase and refinance loans.
Mortgages are complicated. Here are some important terms to know.
Type of mortgage
Your mortgage type indicates whether your mortgage is part of a government program. Here are the common types of mortgages:
- Conventional mortgages are not part of a government program. Lenders have a great deal of freedom in how these mortgages are structured.
- FHA Loans are supported by the Federal Housing Administration. These loans are designed to help more people buy a home. To make the loans more accessible, they have low down payment and credit rating requirements.
- AV loans are overseen by the Department of Veterans Affairs. These loans are a benefit to current service members and veterans who meet service requirements. Those who qualify generally don’t have to make a down payment and there’s some flexibility when it comes to your credit score.
The term of your mortgage is how your lender designs your mortgage. Here are some common mortgage terms.
- 30 years fixed mortgages offer homebuyers lower monthly payments compared to other mortgage terms. A fixed rate mortgage also has the same interest rate as long as you have the mortgage. This means you make the same monthly payments until the mortgage ends in 30 years.
- A 15 year fix mortgage is similar to a 30-year fixed rate mortgage. It has higher monthly payments but you pay less interest. After 15 years, your home loan will be repaid.
- 5/1 Adjustable Rate Mortgages (ARM) have an interest rate that the lender can change. This adds an element of unpredictability to your mortgage, as it means your monthly payment may also change. These loans usually have a fixed rate term for the first few years. A 5/1 ARM has a fixed rate for the first 5 years and the rate changes thereafter.
Which mortgage lender is right for you?
How to find the best mortgage lender? It starts with getting quotes from multiple lenders. Here are some qualities to look for.
- Reasonable rates: The best lender may not be the one with the lowest rates. After all, there are other qualities to consider. But the lender’s rates must be competitive. Keep an eye on the lender’s fees and if they offer lender credits.
- great service: Is the lender responsive to your requests? Do you feel valued? Does the lender help you choose a loan that meets your needs or do you feel pushed? A good lender will prioritize your needs.
- Loan possibilities: Do you have a type of loan in mind? Not all lenders offer all loan types. Check with potential lenders to see what loans they have to offer.
Hawaii Lender Credit Score Minimums
Your credit score is a 3-digit number generated by a computer model. Lenders use your credit score to decide if you qualify for a mortgage and, if so, what interest rate to offer you. Here are the interest rates for several Hawaii lenders.
Current Mortgage Rates in Hawaii
Lenders can change mortgage rates frequently. Sometimes it’s as often as several times a day. Lenders change rates to reflect what is happening in the economy and the housing market. They tend to lower rates when the economy isn’t doing so well to encourage consumers to borrow money. They tend to increase them when the economy improves because there is more competition for loan funds.
At Benzinga, we keep our prices up to date to reflect the most relevant data. Here are the current rates in Hawaii.
Rates based on an average home price of $325,000 and a 20% down payment.
Average days to take out a loan
Closing refers to when all is said and done regarding your mortgage. The process begins when you submit your official application and financial information. Then the lender confirms all your financial data. You may need to answer questions or provide additional documents. Lenders typically order an appraisal, which is when a neutral third party assesses the value of your home.
Once your lender has all the information, they’ll let you know if you’ve been approved. If you are approved, you will have a meeting with your realtor and other parties to sign your final documents. You will also pay any outstanding funds.
How long does all this take? Here is the average number of closing days for several Hawaiian lenders.
Which mortgage is right for you?
Although choosing a mortgage can be stressful, there may be several options that might work. Look for a mortgage that fits your budget without causing you stress. Keep in mind that houses often need upgrades and repairs, and set aside funds for that as well. There’s a mortgage for almost every situation, so keep looking until you find the one that’s right for you.
What is the lowest acceptable credit score for a mortgage in Hawaii?
The lowest credit score to get a mortgage in Hawaii is 620.
Where can I find a good mortgage lender in Hawaii?
You can find a good mortgage lender in Hawaii by looking at the list above.
What are the three types of mortgage loans?
Three types of mortgages are a 30-year fixed rate loan, a 15-year fixed rate loan, and an adjustable rate mortgage (ARM).