; Market Opportunities for First-time Home Buyers - Hawaii Central Federal Credit Union

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Market Opportunities for First-time Home Buyers

Current interest rates offer a unique opportunity for first-time home buyers, and home buyers 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. In a live broadcast with KITV 4, President of the Honolulu Board of Realtors, Fran Villarmia-Kahawai, confirmed we are now in a buyer’s market.

Mortgage Loan Officer Irene Ayling said, “Our 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 Villarmia-Kahawai.

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 pet-friendly home in Metro Honolulu, a highly desirable neighborhood, homeownership was a dream come true, made possible through the First-Time Home Buyer Program. “I never imagined I would be buying a home in Hawaii,” said Marshall.