VA Loans

For the service members, veterans, and military families who call Hawaiʻi home, the VA loan is one of the most powerful paths to homeownership available anywhere — often with zero down payment and no monthly mortgage insurance. Here’s how it works, and how our team can help you put it to use on Oʻahu.

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🎖 What Is a VA Loan?

The VA loan is a mortgage benefit created to help service members, veterans, and eligible surviving spouses become homeowners. It is a loan guaranty program backed by the U.S. Department of Veterans Affairs (VA).

Here’s the key thing to understand: the government generally does not lend the money directly. Instead, a private lender funds your loan, and the VA guarantees a portion of it. That guaranty protects the lender against loss if a borrower defaults — which is exactly why lenders can offer VA buyers such favorable terms.

Hawaiʻi is home to one of the largest military communities in the country, and the VA loan is one of the most popular routes to homeownership for our service families.

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✅ Who Qualifies?

VA loans are available to eligible active-duty service members, veterans, National Guard and Reserve members, and certain surviving spouses. Eligibility is based on your length and character of service.

Before you can use the benefit, you’ll need a Certificate of Eligibility (COE) — a formal document from the VA that confirms your entitlement. The good news: a VA-approved lender can usually request your COE for you during pre-approval, so it rarely slows things down.

Depending on your entitlement, eligible buyers can finance 100% of the purchase price (0% down).

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💰 Key Benefits of a VA Loan

• No down payment for most eligible buyers with full entitlement
• No private mortgage insurance (PMI) — even with little or no money down
• Competitive interest rates, often lower than conventional loans
• Limited closing costs — the VA restricts certain fees, and many VA lenders cover “non-allowable” costs
• The benefit can be used more than once over your lifetime

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🏝 VA Loan Limits in Hawaiʻi

This is the part that has changed the most — and it’s good news.

If you have full entitlement: there is no loan limit

Thanks to the Blue Water Navy Vietnam Veterans Act of 2019 (effective January 1, 2020), the VA no longer caps how much you can borrow if you have your full entitlement — which most first-time VA buyers do. You can purchase a home at any price a lender approves, with $0 down, as long as you qualify based on income, credit, and the appraisal. In one of the nation’s most expensive housing markets, that’s a meaningful advantage.

If you have partial entitlement: county limits apply

County loan limits only come into play if you have partial (reduced) entitlement — typically because you have an active VA loan, or previously defaulted on one. In that case, the county’s conforming loan limit sets your zero-down ceiling; you can still buy above it, but you’d generally put down 25% of the amount over the limit.

Hawaiʻi counties are designated high-cost areas, so these limits are among the highest in the country. For reference, the 2026 figures for partial-entitlement buyers are:

County	2026 One-Unit Loan Limit
Honolulu (Oʻahu)	$1,249,125
Hawaiʻi (Big Island)	$1,249,125
Kauaʻi	$1,249,125
Maui	$1,299,500
Kalawao	$1,299,500

These limits apply only to buyers with partial entitlement and change every year. They do not cap full-entitlement buyers. Always confirm current figures and your own entitlement status with a VA-approved lender — ask us and we’ll connect you.

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🧾 The VA Funding Fee

Because VA loans require little to no down payment and no PMI, the VA charges a one-time funding fee instead. This fee goes directly to the VA to keep the program running for future generations of military buyers — keeping the cost off taxpayers and veterans alike.

The fee is a percentage of the loan amount, and it depends on your down payment and whether this is your first or a subsequent use of the benefit. Current rates for a purchase loan are:

Down Payment	First-Time Use	Subsequent Use
Less than 5%	2.15%	3.30%
5% to 9.99%	1.50%	1.50%
10% or more	1.25%	1.25%

A few important notes:

• The funding fee can be rolled into the loan, so VA buyers can often purchase with little to no out-of-pocket cost.
• It is fully waived for veterans receiving (or eligible to receive) VA compensation for a service-connected disability, for many surviving spouses receiving DIC, and for Purple Heart recipients on active duty.
• Making a larger down payment lowers the fee, as shown above.

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🏠 What Kind of Property Can You Buy?

VA loans can be used to purchase a primary residence, including:

• Single-family homes
• Townhomes
• Condominiums — the condo project must be VA-approved to qualify

The VA maintains an updated list of approved condo projects in Hawaiʻi. You can search it here:

👉 Search the VA-Approved Condo List

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🔑 VA Loan Assumption: A Hidden Advantage

Here’s a lesser-known perk: VA loans are assumable. That means a qualified buyer can take over the seller’s existing VA loan — keeping its original interest rate, balance, and remaining term. When today’s rates are higher than the rate the seller locked in, assuming that loan can save a buyer hundreds of dollars a month.

Who can assume a VA loan?

You don’t have to be a veteran or in the military to assume a VA loan — any qualified buyer can. What matters is your finances, not your service record. To be approved, the buyer must:

• Qualify with the seller’s loan servicer — credit, income, and debt are reviewed, just like a normal mortgage
• Intend to live in the home as a primary residence
• Pay a 0.5% funding fee on the loan balance — far less than the fee on a brand-new VA loan

How the process works

1. Apply with the servicer. The buyer applies directly with the company that services the seller’s loan — not with a new lender.
2. Get underwritten. The servicer reviews the buyer’s credit and income. This step typically takes 45–90+ days, so build extra time into the contract.
3. Cover the equity gap. The buyer pays the seller the difference between the purchase price and the remaining loan balance — in cash or with separate financing. On a home that has appreciated, this gap can be sizable.
4. Close. The buyer signs the assumption paperwork, pays the funding fee, and formally takes over the loan.

One important note for sellers

If a non-veteran assumes your VA loan, your entitlement stays tied to that home until the loan is paid off — which can limit your ability to use your VA benefit again. If the buyer is a veteran, they can substitute their own entitlement to free yours.

Assumptions have a lot of moving parts — if you have questions about assuming (or offering) one, just contact us.

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🤝 How Our Team Can Help

The VA loan is an incredible benefit, but the process has its own details — the COE, VA-approved condos, entitlement math for repeat buyers, and finding a seller’s side that’s comfortable with a VA offer. That’s where we come in.

As a top-performing team at REMAX Hawaii West Oʻahu, we help Oʻahu’s military buyers:

• Understand your eligibility and what your benefit can do for you
• Connect with experienced VA-approved lenders from our preferred list
• Find homes — and VA-approved condos — in the neighborhoods you actually want
• Write a competitive, VA-friendly offer that sellers take seriously
• Coordinate with your lender and the seller’s side to keep everything on track to closing

See If You Qualify

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❗ Important Things to Know Before You Apply

Owner-Occupancy

VA loans are for your primary residence. You’ll generally be expected to occupy the home, typically within 60 days of closing. They’re not designed for pure investment properties or second homes.

Entitlement & Repeat Use

You can use your VA benefit more than once, and entitlement can often be restored after you sell a VA-financed home. If you currently have a VA loan, your remaining entitlement affects your zero-down buying power — this is where the county limits above come in.

Always Confirm With Your Lender

VA guidelines, funding fees, and loan limits change, and every buyer’s situation is different. It’s always best to confirm current eligibility, limits, and VA-approved condos with your mortgage loan originator. Contact us and we’ll get you a list of our preferred VA-approved lenders.

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🏠 Ready to Take the Next Step?

You’ve earned this benefit — let’s put it to work. Whether you’re PCSing to the islands, transitioning out of service, or a long-time local veteran ready to buy, we’d be honored to help.

For official VA loan information, visit the U.S. Department of Veterans Affairs. Eligibility rules, funding fees, and loan limits are subject to change. Figures shown reflect 2026 VA and FHFA limits and current VA funding fee rates. This page is for general information only and is not a commitment to lend; consult a VA-approved lender for guidance specific to your situation.