Hawaii
Hawaii VA IRRRL: Streamlining an Oahu VA Loan
What a VA streamline refinance looks like in Hawaii, including the title reissue discount most people forget to ask about. Home Loans Inc is not licensed in Hawaii.
Home Loans Inc is not licensed in Hawaii and cannot take a Hawaii application. We lend in South Carolina, North Carolina, Virginia, West Virginia, Florida, Georgia, Alabama, Mississippi, Iowa and Wyoming.
Oahu's VA footprint
Seven installations on one island, and a lot of VA loans
Joint Base Pearl Harbor-Hickam
Honolulu. Pacific Fleet headquarters and the 15th Wing.
Schofield Barracks and Wheeler
Wahiawa. The 25th Infantry Division plus Army aviation at Wheeler Army Airfield.
Marine Corps Base Hawaii
Kaneohe Bay, home of the 3rd Marine Regiment.
Fort Shafter and Camp H.M. Smith
US Army Pacific headquarters in Honolulu and US Indo-Pacific Command in Aiea.
Tripler Army Medical Center
The military hospital on the ridge above Honolulu.
Kauai
The Pacific Missile Range Facility, a much smaller presence.
Almost all of Hawaii's military lives on Oahu, and so do most of the VA loans worth streamlining. Maui and the Big Island have VA homeowners too, many of them people who got out and stayed. The streamline does not care which island you are on. Before we go further: Home Loans Inc is not licensed in Hawaii. I cannot take your application. This page is for veterans who want to go into a lender meeting armed.
Big balances, same rules
Why the streamline math matters more on an island
Hawaii prices are high, which means balances are high, which means even small rate changes move real money. It also means the 0.5 percent funding fee is a bigger number in dollars. If you receive VA disability compensation, it is waived, so make sure the lender knows.
The VA tests do not bend for paradise. You need at least 210 days from the first payment due date and six payments made, whichever is later. Your total costs must come back through lower payments within 36 months. VA requires a net tangible benefit. VA usually does not require an appraisal or income verification, though lenders may add overlays, which is a relief on an island where values vary a lot by neighborhood. You are not asking anyone to bless what your house is worth. You are asking for a better rate on a loan you already have, and showing that the savings beat the costs.
Closing in the islands
Escrow companies, dry funding and a title discount worth asking about
Hawaii is an escrow and title state where escrow companies run closings. Funding is dry, and with the federal three-day rescission on a primary residence, the time from signing to funding is longer than in wet-funding states. Remote online notarization is generally available, which is great for anyone who PCSed to the mainland and kept the house.
Here is the money tip. A title insurance reissue discount of roughly 50 percent can apply on a refinance in Hawaii. Ask the escrow officer whether your policy qualifies. On a big balance that can be a meaningful chunk of your costs.
Hawaii charges no state tax on a refinance, only recording fees. The conveyance tax is deed-based and does not apply.
Vesting and signatures
Tenancy by the entirety, joint tenancy, and your spouse
Generally a non-borrowing spouse does not sign in Hawaii. The state has no community property and abolished dower and curtesy in 1977. But vesting matters. If you hold title as tenants by the entirety or joint tenants, your spouse may be on the deed, and then they sign. Pull the deed before closing.
Two more facts. Prepayment penalties are capped, allowed in the first five years at no more than six months of interest. Foreclosure in Hawaii is judicial. Neither should touch a borrower who is current. Take this list to a Hawaii-licensed lender and compare the offers line by line. Look hard at three items: the rate, the lender fees, and whether the title reissue discount shows up. If it is missing, ask why. A lender who cannot answer that has not looked at your file closely.
Hawaii VA IRRRL questions
Is there a title insurance discount on a Hawaii VA streamline?
Often. A reissue discount of roughly 50 percent can apply to title insurance on a Hawaii refinance. Ask your escrow officer whether your existing policy qualifies. On Oahu-sized balances, that can make the 36-month recoup test much easier to pass.
We hold our Kaneohe home as tenants by the entirety. Does my wife sign?
Probably yes, because with that vesting she is on title. Hawaii generally does not require a non-titled spouse to sign, since there is no community property and dower was abolished in 1977, but anyone on the deed signs. Confirm vesting with escrow.
Why does my Honolulu refinance take longer to fund?
Hawaii funds dry. Escrow records and disburses after signing, and the federal three-day rescission on a primary residence adds time. Expect a few days between signing and payoff of your old loan.
I PCSed from Schofield and rent the house. Can I still do an IRRRL?
Yes. A VA streamline only requires that you certify you lived in the home before. Remote online notarization is generally available in Hawaii, so you may be able to sign from your new duty station.
Will Home Loans Inc take my Hawaii IRRRL application?
No. Home Loans Inc is not licensed in Hawaii and cannot take the application. Use this page to understand the process, including the title reissue discount and vesting questions, then work with a lender licensed in Hawaii.