HHOC Down Payment Assistance Loan
Financial Assistance for Homebuyers in Hawaii
The purpose of this program is to make funds available to eligible applicants who are interested in purchasing a home but need financial help to pay the upfront costs, which include the down payment, as well as the closing costs and prepaid items required to obtain homeownership. These expenses can add up to a substantial amount, and the inability to pay it might keep people stuck in a renters trap.
The DPAL Program allows borrowers to purchase a home with a 5 percent down payment and avoid mortgage insurance requirements through a second mortgage/the down payment loan. The maximum loan amount available to applicants is $75,000, fixed for a 20-year amortization, and due in 15 years. The interest rate is up to 2 percent above the first mortgage rate.
In order to be considered eligible for the DPAL program, all applicants must meet certain requirements. Applicants must be first-time homebuyers; an individual who has owned a home in the last three years cannot qualify for the program. They must also have a mid-FICO score of no less than 700.
It is mandatory that all applicants complete (approximately) 9 hours of homebuyer education with the Hawaii HomeOwnership Center (live class or on-line class), as well as one counseling session from the HHOC.
Under the DPAL Program, the home being purchased must serve as the applicant’s primary residence. Eligible properties include single-family dwellings, condominium units, or townhouses. If the applicant is putting no more than the minimum 5 percent down on the home, it must not exceed the program’s maximum purchase price of $500,000.
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but States and Local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price and income limits.
Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.
FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.
Down Payment Grants in Hawaii
This Down Payment Assistance Loan allows borrowers to purchase a home with a 5 percent down payment and avoid mortgage insurance requirements through a second mortgage/the down payment loan. The maximum loan amount available to applicants is $75,000.
The Honolulu Down Payment Loan Program provides applicants up to $40,000 in assistance funds in the form of a zero-fee, zero-interest loan with a 20-year amortization term. Minimum monthly payments can be lowered, based on the applicant’s credit qualifications.
The Hawaii Housing Finance and Development Corporation (HHFDC) offers homebuyers the Hula Mae Mortgage Loan Program. In addition to an affordable home loan, the program provides assistance toward making the down payment associated with a mortgage.
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