PCSing to Marine Corps Base Hawaii and wondering if a VA loan will work in Kaneohe’s competitive market? You’re not alone. Between Oahu’s higher prices, lots of condos, and occasional leasehold properties, it helps to have a simple roadmap. In this guide, you’ll learn who qualifies, how to secure your Certificate of Eligibility, what to expect with funding fees and down payments, and how condo and leasehold rules play out on Oahu. Let’s dive in.
Who qualifies for a VA loan
If you’re active-duty, a veteran, a qualifying National Guard or Reserve member, or a surviving spouse, you may be eligible for a VA home loan. Exact service time and discharge requirements vary by status and service era. When you’re ready to confirm eligibility or check the latest rules, start with the official VA home loans page on VA.gov.
- Eligibility depends on service length, duty status, and discharge type.
- Some borrowers qualify right away, while others need additional documentation.
- Lenders rely on your Certificate of Eligibility to confirm entitlement.
For current program details, use the VA’s official guidance on the VA home loans page.
Get your Certificate of Eligibility (COE)
Your COE is the document that shows lenders you have VA entitlement. You can get it online through VA systems, by mail, or your lender can request it for you.
- Common documents include DD214 for discharged veterans, a Statement of Service for active duty, and NGB-22 for Guard or Reserve.
- Many borrowers receive their COE within minutes when a lender requests it electronically.
- Having your COE in hand early speeds up pre-approval and strengthens your offer.
If you’re just getting started, review COE steps on the VA home loans page, then ask your lender to retrieve it as part of pre-approval.
Funding fee and typical costs
The VA funding fee is a one-time cost that helps fund the program. It is separate from normal closing costs and is not private mortgage insurance.
- The funding fee varies based on your service category, whether this is your first use, and your down payment amount.
- Many buyers choose to finance the funding fee into the loan. You can also pay it in cash.
- Some buyers are exempt, including borrowers receiving VA disability compensation and certain surviving spouses.
Sellers can often contribute to your closing costs and may be able to cover the funding fee as part of concessions, subject to current VA rules and lender policies. For the latest fee details and exemptions, check the VA home loans page.
Entitlement, loan size, and down payments
VA entitlement is the amount the VA guarantees, which guides how much you can borrow without a down payment. On Oahu, where prices can run high, lender policies and underwriting standards also play a role.
- With full entitlement, qualified buyers often finance 100 percent with no down payment.
- A down payment can reduce your funding fee and can help your offer stand out in a competitive market.
- Lender overlays may require certain credit scores, cash reserves, or a down payment at higher price points.
If you already have a VA loan or partial entitlement tied up, your lender will explain how that affects your options and whether a down payment is needed.
Condo approval, leasehold, and Oahu specifics
Condo approval
Many Kaneohe and windward Oahu homes are condominiums. For a VA loan, the condo project generally needs to be VA-approved.
- Confirm whether a building is VA-approved before writing an offer or include a contingency for project approval.
- If a project is not approved, some lenders can seek approval. This adds time and can delay closing.
- HOA dues, special assessments, and building budgets affect underwriting and residual income calculations.
You can learn how VA reviews condo projects on the VA home loans page. Start this check early if you plan to buy a condo near MCBH.
Leasehold vs fee-simple
Hawaii has both fee-simple and leasehold properties. VA loans may be used on some leaseholds, but there are added rules.
- The remaining lease term must be sufficient for the loan length.
- Lenders and VA review lease terms for things like rent resets or clauses that could affect the loan.
- Lessor consent and extra legal review can add time to escrow.
If you’re considering a leasehold, disclose it early. Get the full lease documents to your lender and title company as soon as you go under contract.
Flood and coastal risk
Kaneohe’s coastal setting near the bay can involve flood zones. Your lender may require flood insurance, which affects your monthly payment and approval.
- Check the FEMA Flood Map Service Center to understand flood risk and insurance needs.
- Factor HOA master policies and building coverage into your budget.
Look up your property’s flood zone on the FEMA Flood Map Service Center.
VA appraisal and property requirements
A VA appraisal confirms value and checks that the home meets VA Minimum Property Requirements for safety, sanitation, and structural soundness.
- Common repair items include major roof issues, faulty HVAC, termite damage, or safety hazards.
- Waterfront or near-coast properties may raise questions about insurance, condition, or access.
- A home inspection is still recommended. It is different from the VA appraisal.
If repairs are required, you and your agent can negotiate with the seller for fixes or credits. Build realistic timelines into your contract for appraisal, repairs, and any re-inspections.
Step-by-step: Kaneohe to closing
1) Choose your VA-savvy team
Select a lender experienced with VA loans in Hawaii and an agent who knows windward Oahu neighborhoods and HOA/leasehold nuances. Discuss your target payment, BAH, and commute to MCBH.
2) Get pre-approved and retrieve your COE
Share income, assets, and credit information with your lender. Ask the lender to retrieve your COE right away. A strong pre-approval letter helps your offer compete.
3) Target VA-eligible homes
Focus on fee-simple single-family homes, VA-approved condos, or leasehold properties that meet VA criteria. Confirm condo approval and gather HOA documents early.
4) Make an offer with smart contingencies
Include loan, appraisal, and HOA review contingencies. For condos or leaseholds, allow time for project approval, document review, and any lessor consent.
5) Enter escrow and underwriting
Your lender orders the VA appraisal and reviews your file. Provide requested documents quickly, including HOA budgets, meeting minutes, insurance certificates, and lease documents if applicable.
6) Inspections and repairs
Schedule a home inspection. If the VA appraisal flags repairs to meet MPRs, negotiate with the seller to address them. Monitor timelines for any needed re-inspections.
7) Final approval and signing
Once conditions are cleared, you will sign final loan documents and close. In Hawaii, 30 to 45 days is common, but condo approvals, leaseholds, and repairs can extend timelines.
8) Occupancy and move-in
VA loans require you to occupy the property as your primary residence within a set timeframe. If you anticipate deployment or need a power of attorney, discuss options with your lender early.
Tips for MCBH and PCS timing
- Start early. Get your COE and pre-approval before house-hunting.
- Ask about seller concessions and how they can reduce your out-of-pocket costs.
- If deployed or expecting orders, discuss occupancy timing and power of attorney with your lender and agent.
- Build in time for condo approvals, HOA documents, and any flood insurance underwriting.
- Consider making a small down payment to lower your funding fee or strengthen your offer.
Common hurdles and how to avoid them
- Condo project not VA-approved: Verify approval before offering or include a contingency. Start approval requests early if needed.
- Leasehold complexity: Share full lease documents with your lender and title team at the start of escrow.
- Appraisal repairs: Identify issues early and negotiate clear repair agreements.
- Flood insurance delays: Order quotes and confirm coverage limits as soon as you open escrow.
- Lender overlays: Choose a VA-experienced lender in Hawaii who understands large-loan approvals and residual income requirements on Oahu.
Your next best step
Buying near MCBH can feel fast and competitive, but the VA loan is a powerful tool when you pair it with local expertise. With the right prep, you can shop confidently, write a stronger offer, and close on a home that fits your budget and lifestyle in Kaneohe or across windward Oahu.
If you’re ready to align your VA financing with the right neighborhood, condo building, or fee-simple option, let’s talk. Reach out to Laura Ing Baker for buyer representation and a clear plan from pre-approval to keys.
FAQs
Who is eligible for a VA loan in Hawaii?
- Eligible groups include active-duty service members, veterans, certain National Guard and Reserve members, and some surviving spouses; confirm details on the VA home loans page.
How do I get my VA Certificate of Eligibility (COE)?
- Your lender can retrieve it electronically, or you can follow the steps on the VA home loans page; many borrowers receive it within minutes.
What is the VA funding fee and can I finance it?
- The funding fee is a one-time charge that varies by service category, first vs subsequent use, and down payment; it can usually be financed or paid by the seller as concessions, subject to current VA and lender rules.
Can I use a VA loan to buy a condo near MCBH?
- Yes, if the condo project is VA-approved; confirm approval early or allow time for a lender to seek approval, which can extend your timeline.
Are leasehold properties eligible for VA loans on Oahu?
- Possibly; VA allows some leasehold purchases if the lease terms meet VA requirements for remaining term and acceptable clauses, and if the lessor provides required consents.
How do flood zones affect VA loans in Kaneohe?
- Properties in certain flood zones may require flood insurance, which affects your monthly payment and underwriting; check the FEMA Flood Map Service Center.
