Puna - are banks lending for home purchase?

[freespirit]

Aloha,

I haven't heard if bank are lending again in areas of Puna. Like Hawaiian Beaches, Nanawale etc.

We found out that spouse has a terminal illness and we are have to move back to mainland for certain medical services. Wanting to know if selling our home is an option or if we need to rent it out.

If renting to take care of our mortgage, insurance and taxes it would have to be around $1K a month to meet those. Selling would be a better option for us but then if financial institutions are not lending in our area I guess we would have no other option but to rent out our home.

If anyone has heard anything or has any in-site please share.. It would be appreciated.

Much Mahalo.

[leilanidude]

I have not heard of any local ones loaning for lava zone 1, but some of the national ones might, IF you never mention the term "lava". Bank of Hawaii is not loaning in zone 1 or 2. There have been a lot of cash sales in the area lately - certainly not every sale needs someone to get a mortgage.

If you are renting it out, your property tax exemption for living in it, goes away. You will be paying a higher tax rate. But there is no rule that you have to rent for your costs or above. Besides, when renting you get to utilize depreciation schedules which will help you to show a "loss". Of course you later have to pay taxes on the gain that includes that "loss" you took for depreciation over the years.

[freespirit]

Mahalo - leilanidude -

[DoryGray]

Another option for you would be to hold the mortgage yourself. As long as you get a sizable down payment you should be good. You get monthly income without all the hassle of being a landlord. I have done this with every house I've sold.

[Tink]

Works well Dory Gray. A visit to the bank to set up an account they can deposit the payment to, then to the Title Company to "officiate" the transaction.

[ckg]

Just got confirmation from our Realtor that they are writing notes in LZ2. I would assume Lloyds would be writing policies as they wrote before. Else the state sponsored option which sucks from what I recall.