According to numbers published by Title Guaranty, one of Hawai`i's leading title and escrow organization, the total value of new loans and re-fis across the residential and commercial markets dropped to $5.2 billion during the first quarter of '08, from 10.4 billion in the year-earlier period. The slowing housing market is one reason. The contraction of loan products, particularily in the no-doc category of loans, is another contributor to the reduced volume in mortgages.
In some parts of Hawai`i, I'm talking about the state now, not the Big Island, HELOC, Home Equity Lines of Credit, are being pulled as property values continue to decline. For those with superb credit, full doc loans are still at amazingly low rates though. And Countrywide has an amazing rural loan program that has loans up to $773,000 for virtually no money down. It is one of the few "no money down" programs still available in today's market of fewer loan programs.
Rick Daysog of the Honolulu Advertiser has a full report on the loan industry and some of the challenges they are facing. Read about the Hawaii Loan Mortgage challenge here.
Ron Margolis, RA, CDPE, ABR Hawaii Life Real Estate Services 808.346.7095 email: firstname.lastname@example.org