Financing Your Maui Dreams: An Q&A Series with one of Maui’s Top Lender, Tara Shupack
Dreaming of owning a home, investment property, or vacation retreat on Maui?
Navigating the financing process is one of the most important—and often overwhelming—parts of making that dream a reality. That’s why I’m excited to introduce a new series: “Financing Your Maui Dreams: A Q&A Series with one of Maui’s Top Lenders, Tara Shupack.”
Each week (for a limited time), Tara will answer some of the most common questions buyers have when it comes to financing property on Maui. From loan types to credit tips, pre-approvals to second home purchases, we’ll cover it all—clearly, simply, and with aloha.
Week 1:
Q: “How much money do I really need for a down payment in Maui?”
(Because so many people assume it’s always 20% — it’s not!)
A: Good Question! Down Payments vary by loan program. For Veterans with VA benefits and those who qualify for a USDA loan, the down payment requirement is $0. Fannie Mae and Freddie Mac offer options as low as 3% down and FHA’s minimum requirement is 3.5%. Condominiums structured as vacation rentals (condo hotels/non-warrantable condos) typically require 25 – 30% down.
Week 2:
Q: “What’s the difference between getting pre-qualified and pre-approved?”
A: Various lenders have different definitions for the terms pre-qualified and pre-approved and tend to use them interchangeably. As far as I’m concerned, a prequalification means that a potential borrower has provided sufficient employment, income, credit, and down payment information. This allows a lender to estimate the loan amount they qualify for. A pre-approval means the same documentation has been reviewed, plus an application has been completed, and their file has been run through a digital underwriting system for approval.
Stay tuned for quick, informative posts to help you feel more empowered and prepared on your Maui real estate journey!
Do you have a specific question you’d like answered? Feel free to email me at JeannieKongEvarts@gmail.com or message me on Instagram. I’d love to hear from you! Also, please feel free to email or call Tara Shupack directly yourself!
Week 3:
Q: “Can I buy a vacation rental condo with a regular mortgage?”
A: There are condominiums on Maui that conventional financing considers warrantable. These condos can be used as a buyer’s primary residence, second home, or vacation home. There are also condominiums on Maui that are considered non-warrantable by conventional financing methods. These condos often run as a condo-hotel, meaning they might have a front desk, maid service, low owner occupancy rate, etc. In these cases, we typically lean on lenders that have a program in place for this purpose.
Do you have a specific question you’d like answered? Feel free to email me at JeannieKongEvarts@gmail.com or message me on Instagram. I’d love to hear from you! Also, please feel free to email or call Tara Shupack directly yourself!
Next week we will tackle!
“How do mortgage rates in Hawaii compare to the mainland?” And what affects mortgage rates?
PLEASE NOTE THAT THESE ARE JUST GENERAL ANSWERS FOR EDUCATIONAL PURPOSES. YOUR SPECIFIC SITUATION AND CIRCUMSTANCES MAY VARY AND THEREFORE DOWN PAYMENTS OR LOAN PRODUCTS MAY VARY SO PLEASE CONTACT LENDER FOR YOUR SPECIFIC SCENARIO. NOT MEANT TO BE FINANCIAL OR TAX ADVICE! PLEASE CONTACT YOUR TAX ADVISOR FOR YOUR THAT.
Thank you and a hui hou…
Jeannie
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📩 Have a financing question? Message me or visit LivingOnMaui.com
Looking for some great Maui Real Estate Opportunities, check out my listings:
WaileaC203.com
SugarBeach408.com
Menehune304.com
Villas103.com
