November 24, 2009|Cynthia Saylor|Mortgages/Economy/Market
It’s no secret that it has become more difficult over the last year to obtain conventional financing for the purchase of a property on the Big Island of Hawaii. Banks and lenders are being cautious as they sort out new regulations and changes in how appraisals for certain loans are handled. Lending options for Lava Zone 1 and 2 properties have become more restricted. Loans for vacant land are rarely seen these days.
So, what’s a buyer to do?
First, of course, is to determine whether your personal financial situation is secure and you are ready to take on the responsibility of new debt. If you are, there are alternatives to conventional financing that you and your agent can explore:
Purchase Money Mortgage/Agreement of Sale:
In some markets, seller financing is almost unheard of, but it’s a little different here on Hawaii Island. There is a long tradition of transactions using Agreements of Sale and Purchase Money... Read More
TagsAgreement of Sale, Big Island, buyers, financing, first time buyer resources, Hawaii, HUD 203K, interest rate, lava zones, Purchase Money Mortgage, seller financing, sellers, vacant land