VA will let you pay off your credit cards through escrow when you a buy a home in Hawaii

Did you know that if you use a VA loan to purchase a house, the lender will allow the seller to pay off your credit cards at closing? I know it sounds crazy, but it's true. We're doing it on a transaction right now.

In this case, my client is buying a condo in Kailua, in Poinciana Manor. It's a great little complex, and they got a great deal at $415k with $10k credit from the seller. We wanted that $10k credit to do some improvements to the property because the kitchen, bathrooms, and floors need updating.

Usually the seller's credit can only go toward a buyer's closing costs, but with a VA loan, the seller is allowed to pay money toward any of the buyer's credit cards as well. In this case, the buyer happens to want a gift card to Home Depot. So she can just go buy a home depot gift card on her credit card and have the seller pay it!
This is a great way for buyers to get money to do home improvements. Very simple, very legal. Thanks to Debbie Elliot at First Horizon home loans who taught me about this today.