Housing market opportunities: First-time homebuyers enter the housing market with 10% down and no private mortgage insurance required
HONOLULU, HI (May 30, 2023) — Current interest rates offer a unique opportunity for first-time homebuyers, and homebuyers in general, to possibly negotiate a lower asking price. According to the April report by the Honolulu Board of Realtors, the number of homes receiving full asking price or more fell 34% when compared to April of last year. The median sales price for single-family homes was down 9.5% and the median price for condos was down 2.0% when compared to April 2022.
Mortgage Loan Officer Irene Ayling said, “The Hawaii Central FCU First-time Home Buyer Program has no private mortgage insurance requirement with just 10% down, allowing us to make the dream of homeownership a reality for more people in the O`ahu Community.”
In fact, none of Hawaii Central FCU’s mortgage loan programs require private mortgage insurance. “Improving people’s lives is our goal as a credit union,” said President Drake Tanabe. “Private mortgage insurance can cost hundreds, and eliminating this payment was an important step to increasing a potential home-buyer’s borrowing power.”
“While most people will opt for a 30-year fixed rate loan like that offered by the First-time Home Buyer program, we have a 7-year ARM (adjustable rate mortgage) with a fixed 15/30 year option that also offers lower monthly payments to borrowers interested in purchasing a home now while waiting for the rates to drop in the future,” said Ayling. “The first step is to sit down with a loan officer and get pre-qualified. That way, you’ll have an affordable price range in mind before shopping for a new home.”
“It’s important to remember that O`ahu real estate varies from neighborhood to neighborhood,” said Fran Villarmia-Kahawai, President of the Honolulu Board of Realtors.
Lore Woodley, a Real Estate Broker with Locations Hawaii confirmed she is seeing opportunities for negotiation in certain neighborhoods. “While a first home oftentimes is not a buyer’s dream home, it is an opportunity to break into the market and is a steppingstone towards that dream home.”
For member Marshall D. who recently came into the branch to sign paperwork on his new home in Metro Honolulu, a highly desirable neighborhood, homeownership was a dream come true, made possible through the Hawaii Central FCU First-Time Home Buyer Program. “I never imagined I would be buying a home in Hawaii,” said Marshall.
Member Marshall D. signs his closing paperwork with Hawaii Central FCU Mortgage Loan Officer Irene Ayling.
About Hawaii Central Federal Credit Union
Hawaii Central Federal Credit Union is currently recognized by FORBES as one of the top three Credit Unions in the State of Hawaii. Founded in 1937, Hawaii Central Federal Credit Union is a member-owned, not-for-profit financial institution serving over 17,000 members and has over $300 million in assets. Membership is open to all individuals who live, work, worship or attend school on Oahu. Businesses and other legal entities on the island are also eligible for membership.
