Hawaii Mortgage Lender

    Hawaii Mortgage Lender: Top 5 Picks Of 2021

    Hawaii’s median home price of $615,300 is over twice the national average median and more than $100,000 over the second-most expensive state, California. Whether you’re buying or renting, living in Hawaii will cost you a lot of money. And since there’s not much room for error when looking for a new home in Hawaii, you need a good mortgage lender that can give you the best deals. 

    In this article, we’ll provide a complete rundown on the five best Hawaii mortgage lenders. We also provide the five main criteria of a good mortgage lender so you can conduct your own research.

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    Choosing A Mortgage Lender 

    Like shopping for any other product and service, your search for the best mortgage lender needs a proper set of criteria. Here are the five main criteria that we use in picking our best mortgage lenders.

    Mortgage Loan Products Offered

    Different loan options cater to different needs, which means a loan that’s good for someone else isn't necessarily good for you. To ensure you choose the right loan, you need to learn how the most common loan types work.

    • Conforming mortgages: Conforming loans are mortgages that do not exceed local lending limits. Loans in the entire state of Hawaii are set at $822,375, considerably higher than the national average of $548,250.
    • Jumbo mortgages: Jumbo loans are taken to buy homes priced over local lending limits – which is very likely in places like Hawaii and California. These jumbo loans usually come with higher rates to offset their large amounts.
    • Fixed-rate mortgages: Mortgages with constant rates that remain the same until it’s paid off. Their stability makes them popular among first-time homebuyers.
    • Adjustable-rate mortgages (ARMs): Interest rates on this loan type readjust annually. However, they also feature a short initial period of fixed interest rates that range from 3 to 10 years.
    • Government loans: These loans backed by federal government bodies offer advantages like low rates and reduced down payments. The three main government loan providers are the Federal Housing Authority, the Department of Veterans Affairs, and the United States Department of Agriculture.
    • Mortgage refinancing: Refinancing a mortgage entails taking out a new loan to repay your existing one. A refinance is usually used to save money by getting lower interest rates or changing your loan’s terms.
    • Home equity lines of credit (HELOC): A credit card-like home equity loan that uses your property as collateral.

    Affordability 

    Mortgage rates aren’t a good measure of affordability since rates change all the time. That’s why we use four criteria to measure how easy it is to qualify for a mortgage loan:

    • Minimum credit score: Your credit score measures how likely you are to make debt payments on time, which is why lenders use it as a primary way to calculate your rates. Most lenders impose a minimum credit score of 620 to qualify. However, some loan programs like FHA loans accept lower credit scores, making them easier to qualify for. 
    • Minimum down payment: Generally, you need a 20% down payment to qualify for a loan. Some lenders accept as little as a 3% down payment, but you may need to pay for private mortgage insurance. 
    • Closing costs: Your lender may charge other costs such as your origination fees and appraisal expenses. These fees are paid during your loan’s closing and can cost up to 5% of your loan amount. Some lenders allow you to fold closing costs into your interest payments to minimize your upfront expense. 
    • Homebuyer assistance programs: Most states offer homebuyer assistance programs that provide closing cost grants and down payment loans. These programs are usually meant for first-time homebuyers, but some may be available for repeat homeowners. 

    Application Process

    Convenience is an important part of the mortgage application process. Three factors make up this criterion:

    • Availability of online application: It’s all but expected for lenders nowadays to offer a way to apply for loans online. Online application forms help borrowers who live too far away or are too busy to apply for loans with an in-person loan officer. 
    • Rate transparency: Transparent rates make it easy to compare between multiple lenders so you can see which one offers the best value. Different lenders display their sample rates differently – some place them on the website, while others may require borrowers to create an account or talk to a mortgage loan officer first. 
    • Length of the application process: If a mortgage takes too long to close, you may end up losing out on the house you want. Most mortgages close within a few weeks, but your loan may take several months to close if there are issues with it or your lender.

    Customer Service And Ratings

    Mortgage issues can be stressful and expensive, which is why you need a lender with great customer service. We use two rating organizations to quantify the quality of a lender’s customer service: The Better Business Bureau (BBB) and J.D. Power.

    The Better Business Bureau reviews the trustworthiness of a business and assigns it a letter grade, ranging from F to A+. The factors it examines include the handling of customer complaints and transparency of business processes.

    Meanwhile, J.D. Power mostly concentrates on customer feedback and satisfaction. It publishes an annual study that ranks mortgage lenders according to its study results. 

    Access To Services

    We measure a lender’s accessibility by examining how many states it serves. As an additional metric, we also examine the number of branches it operates and whether there’s an equal distribution of branches nationwide.

    If a lender doesn’t serve consumers in your state, there’s no option but to search for other lenders. Meanwhile, a lender that operates many branches in multiple states makes it easier for people to talk to a loan officer or mortgage broker in person.

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    The Best Hawaii Mortgage Lenders

    With the five criteria above, we’ve picked out the five best mortgage lenders in Hawaii. Each of these picks specializes in one aspect of the process, so choose the one that can best cater to your needs. 

    1. Rocket Mortgage By Quicken Loans – Best Online Capabilities

    Credit score requirement: 620 (5780 for FHA)

    Down payment requirement: 3%

    Loan products offered: 

    • Fixed-rate purchase loan
    • ARMs
    • Jumbo loan
    • FHA & VA loans
    • Mortgage refinancing

    BBB Rating: A+

    JD Power rating: 883 (first place in 2020 study) 

    Overview: Rocket Mortgage is the online lending arm of mortgage giant Quicken Loans. Similar to major non-bank lenders like Wells Fargo and LoanDepot, it offers a wide variety of conventional and government-backed loans.

    It offers a fully online mortgage experience from start to finish, meaning consumers can apply online and finalize a loan without leaving the home. You don’t have to worry if this is your first time taking out a mortgage – you’ll be guided by hints and instructional videos throughout the entire process.

    While you can’t visit a branch office for assistance from a mortgage loan officer or mortgage broker, it does offer customer support via phone. You can also contact your loan officer anytime if you have questions. 

    Lender availability: Rocket services loans nationwide with no branch offices.

    2. NBKC Bank – Best For Rate Transparency 

    Credit score requirement: 620

    Down payment requirement: 3%

    Loan products offered: 

    • Fixed-rate purchase loan
    • ARMs
    • Jumbo loan
    • FHA & VA loans
    • Mortgage refinancing
    • Home equity loans (only in Kansas City, Missouri)

    BBB Rating: A+

    JD Power rating: N/A

    Overview: Despite its name standing for “National Bank of Kansas City”, NBKC offers mortgages nationwide. However, consumers outside Kansas City, Missouri can only apply online or by making a phone call to a mortgage banker. All online applications are monitored by a loan officer who you can directly contact if you have any questions.

    NBKC also boasts competitive rates, and it isn’t afraid to show it. The bank allows you to calculate your sample mortgage rates by answering simple questions about your purchase, meaning you don’t have to provide any financial details or contact a loan officer yet if you’re just rate-shopping. 

    Lender availability: NBKC only has branches in Kansas City, but loans are available nationwide.

    3. Guild Mortgage – Best Loan Variety 

    Credit score requirement: 620

    Down payment requirement: 3%

    Loan products offered: 

    • Fixed-rate purchase loan
    • ARMs
    • Jumbo loan
    • Government loans
    • Mortgage refinancing

    BBB Rating: B+

    JD Power rating: 803 in 2020 study

    Overview: California-based Guild Mortgage’s variety of loan types is its greatest strength. In addition to the usual suite of government and conventional loan products, Guild also offers the low-down-payment Fannie Mae MH Advantage loan program for manufactured homes, as well as renovation or construction loans for those looking to remodel their house. 

    Guild offers a paperless loan application process that allows you to contact its mortgage banker online. It also offers quick closing times to consumers. If the entire process takes more than 17 days from application to closing, Guild will provide you with a $500 closing cost discount. 

    Lender availability: Guild offers mortgages nationwide and operates branch offices across 31 states.

    4. Navy Federal Credit Union – Best For Military Families 

    Credit score requirement: N/A

    Down payment requirement: 0% 

    Loan products offered: 

    • Fixed-rate purchase loan
    • ARMs
    • Jumbo loan
    • VA loans
    • Mortgage refinance loans

    BBB Rating: N/A

    JD Power rating: 867

    Overview: With almost 90 years of experience serving military consumers, Navy Federal has become one of the largest credit unions worldwide. In addition to originating VA mortgages, it also offers conventional home loans and refinancing for its members.

    Navy Federal has two signature loan programs on its menu: the HomeBuyers Choice and the Military Choice loans. Both are zero-down loans for first-time homebuyers, veterans, and active military members. You can save even more upfront with this loan by folding the closing costs into your interest payments. 

    Navy Federal accepts loan applications online, by phone, or with a loan officer at one of its branches. In some cases, a Navy Federal loan officer can also review the borrower’s financial situation through their rent and bill payments – meaning people with less-than-perfect credit scores and relatively low income can still qualify for loans.

    Lender availability: Navy Federal offers mortgages nationwide and operates over 240 branch offices.

    5. Bank Of America – Best For Closing Cost Discounts 

    Credit score requirement: 620

    Down payment requirement: 3%

    Loan products offered: 

    • Fixed-rate purchase loan
    • ARMs
    • Jumbo loan
    • VA & FHA loans
    • Mortgage refinance loans
    • Home equity loans

    BBB Rating: A+

    JD Power rating: 860 (second place in 2020 study)

    Overview: As expected from its status as one of the world’s largest banks, Bank of America (BofA) offers a wide variety of financial products to its consumers. This lender offers almost all the loans that a homebuyer could need, save for a USDA loan, with an easy-to-understand online application process.

    Existing BofA consumers can get up to $600 in closing cost discounts. Your application process will also be made easier if you already have a BofA account since the form will auto-fill with your contact information, employment details, and other essential data.

    You can also apply for America’s Home Grant program that offers up to $7,500 worth of closing cost discounts. 

    Lender availability: Bank of America services loans and operates over 4,300 branch offices nationwide.

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    Closing Thoughts 

    The high home prices in Hawaii mean you need to choose the right lender. Having a good mortgage lender at your side can help you get the best rates and receive timely customer support when trouble arises with your loan.

    If you’re looking for additional mortgage resources to help your search for the best Hawaii mortgage company, Wesley Mortgage, LLC is here for you! Contact our team today for professional assistance and advice on how to realize your new dream home in Hawaii.

    Written By Ed Wallace
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