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Housing Market Industry Update for Hawaii

November 16, 2022
As the Federal Reserve tries to rein in inflation, Hawaii's housing market has cooled, reflecting a nationwide slowdown.

Hawaii’s hot housing market has been cooling, reflecting a nationwide slowdown in property markets as the Federal Reserve moves aggressively to rein in inflation.

The median home price in the Honolulu metro area has held steady at $1.1 million, but sales volumes are off, according to the Honolulu Board of Realtors.

Even amid signs of a slowdown, prospective homebuyers still face challenges in one of the nation’s most expensive housing markets.

Hawaii’s housing market combines high prices and bidding wars – market conditions that create demand for out-of-the-box lending solutions, including bridge loans, jumbo loans, interest-only mortgages, non-warrantable condo loans and investor loans.

LendSure offers mortgages to meet the needs of borrowers seeking all types of loans. Notably, we’re newly licensed in Hawaii. That helps us address the unique circumstances your borrowers are facing.

Here are some loan programs that can help your Hawaii clients:

  • Bank statement loans. The number of self-employed borrowers has only accelerated. The freedom of entrepreneurship and gig work is appealing, but there is a downside: Self-employed borrowers face higher hurdles when qualifying for mortgages. It’s a quirk of the mortgage market that some of the economy’s highest earners can have the hardest time qualifying for loans. Luckily, LendSure has a solution. Bank statement loans can help borrowers qualify based on their actual income, instead of what shows up on their tax returns.
  • Bridge loans. The Hawaii housing market remains competitive – and LendSure offers bridge loans to help equity-rich homeowners stand out when a cash offer is needed to win the deal. Our Bridge Financing program empowers borrowers to access equity from their current home to purchase a new home, with no monthly payments on the bridge financing. Borrowers can gain a competitive advantage in a hot housing market by making a non-contingent offer on the new property.
  • Condo loans. Sky-high home prices have spurred some buyers to shop for condos rather than single-family homes. In September, the median prices of condos and townhouses sold in the Honolulu was $502,500, up 5% from the previous September. In some cases, the choice is more about lifestyle than price. Past generations of buyers favored single-family homes, but today’s urban professionals may find condos better suit their lifestyles. But borrowers can face numerous challenges qualifying for financing of condos. Enter LendSure’s loans for Non-Warrantable Condos, a program that brings common sense to condo mortgage lending.
  • Investment property loans. Rents have risen sharply, and many renters are unable to transition to homeownership because of the state’s affordability challenges. As a result, property investors are looking to expand their portfolios. LendSures loans for Investment Properties offer many opportunities for property investors. Our roster of benefits includes interest-only loans, debt-service coverage ratio (DSCR) loans and rate buydowns.
  • Superprime loans up to $3 million. The Alternative A, or Alt-A, mortgage is a type of loan offered to borrowers who fall just short of the strict guidelines imposed by Fannie Mae and Freddie Mac. Alt-A loans also are known as A-minus mortgages – and that’s the perfect way to think of this group of borrowers. LendSure knows these borrowers represent good credit risks. These clients – LendSure calls them “superprime” – have proven themselves to be responsible borrowers. They’re highly unlikely to simply stop paying. That’s why we have offer loans based on a variety of alternative documentation, including Full Doc, Full Doc Self Employed, 12-Month or 24-Month Bank Statements.
  • Jumbo loans. The conforming loan limit for 2022 is $970,800 in all of Hawaii. However, many homes sell at prices well above the conforming loan limit. LendSure’s JUMBO PRIME and JUMBO NON-QM products are tailor-made for these higher-priced homes and areas.
  • Interest-only loans. Hawaii’s home prices are high in part because it’s such a desirable destination for transplants and for buyers of second homes. In the second quarter of 2022, just 32% of homes sold in the Honolulu metro area were affordable to a typical family, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index. LendSure’s INTEREST ONLY product gives buyers some flexibility to reduce their payments. The differentiator with our program is that it’s a 10/40 Fixed Interest Only. Borrowers have 10 years of interest-only payments followed by 30 years of FIXED term, eliminating the uncertainty of adjustable-rate mortgages.

The LendSure Way

It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers and ratios and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan.  We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio or refinancing of a currently-owned property.

Are you ready to grow your business? Conforming loan approval guidelines can be restrictive, but we want to offer our mortgage broker partners the education, the tools, support and the guidance they need in order to say “yes” to more of their clients.  This ensures happy borrowers and opportunities for bottom line growth. What are you waiting for? Let’s get started!

Are you ready to benefit from a commonsense approach to lending?  Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.

Contact Us: (888) 707-7811