The loan also helps out with the down payment.
According to the state, nearly 60 percent of potential homebuyers earn enough to cover the monthly payments. but only half of those people can afford the down payment, usually 20 percent of the cost of the property. the Hawaii housing finance and development corporation, or HHFDC, is offering a 30 year mortgage loan through its hula mae program that can help.
"We felt the biggest challenge for the people in Hawaii is the down payment so with the new program we offer up to three percent down payment assistance we’ll call it along with below rate or competitive mortgage rate," says Darren Ueki, HHFDC finance manager.
The program offers 3.45 percent interest on a regular 30 year loan. those who want want the down payment assistance will get a slightly higher interest rate of 3.8 percent. these are strictly for first time homebuyers and there are certain income limits that vary in each island. and part of the deal is the owner must occupy the home.
"We’re looking to help people, not a way for people to buy a second home. we’re really trying to help those that have tried and are challenged and maybe this just helps them get over the hump," says Ueki.
The state has 43 million dollars available for the program which can help up to 145 potential homeowners. applicants still need to meet all the requirements needed to get a mortgage loan, which are now much stricter since the housing bust that swept most of the country. Hula Mae is working with six lenders: American Savings bank, Bank of Hawaii, Castle and Cooke mortgage, Central Pacific Bank, First Hawaiian bank, and Honolulu home loans.
See the original article at: KHON2 Local News
