A client I helped finance a few years ago forwarded me some information about an issue at his condo complex that should be a wake-up call for anyone who currently owns a condo, or wishes to someday own one. Hawaii is a geologically young place. Our islands were formed only a few million years ago.…

Qualifying for a mortgage is easy to understand if you think about the 4 legs of a chair. Each leg is equally important. A longer leg cannot compensate for a shorter leg. A lender needs stability from each leg in order to feel comfortable giving you a loan. It’s no different than feeling uncomfortable sitting…

Where do self-employed borrowers earn their money? From the business they own. It’s that flow of money that not only determines their income, but is also in almost all cases their source for the money they have in the bank. How and when they money flows from the business to you personally will make all…

How does an impending hurricane affect real estate and lending? While we are all waiting out the effects of Hurricane Lane, let’s highlight some of the issues that arise. Let’s first start with the news a hurricane is on track to our islands. Except for those already in the midst of a transaction, most people…

One of the cornerstones of mortgage financing is determining your income. What on the surface seems like a fairly easy task can often times get bogged down in complex formulas. While some people do have complex income streams, for most the process to determine one’s income is fairly simple. This might seem shocking to you,…

This designation is important to anyone who is interested in buying, selling, or refinancing a condo. In short, almost half of the people out there should pay notice. If a condo project is determined to be non-warrantable, it could lead to difficulties in obtaining financing. Let me first tackle where the term non-warrantable comes from.…

Conditional and Final loan approval are two milestones used to mark specific periods within the process of obtaining a mortgage loan. These two milestones are also referenced in the standard Hawaii sales contract written by the Hawaii Association of Realtors. There’s a lot of confusion over these terms and what they these approvals really mean…

Fannie Mae and Freddie Mac, known in the lending world as GSE’s (Government Sponsored Enterprises), now fund about 90% of all the residential mortgages in the country. No matter who you obtain your mortgage from, that loan will most likely be sold to either Fannie or Freddie. The lender then uses the funds they get…

Everyone’s heard about VA loans for those that have served our country. The “crown jewel” of all mortgage loan products, it allows for 100% financing at the best rates available, and with no mortgage insurance. But there’s always been one issue that has ruined the hopes of some wishing to utilize this amazing benefit. Every…