Hawaii Mortgage Credit Certificate

Are you looking forward to get a Hawaii mortgage credit certificate? If yes, it is good to know how the credit certificate works and how to qualify to get one. This certificate is vital because it reduces the amount of federal income tax a borrower must pay. It frees up income, so that you can get a mortgage. A home buyer must not exceed household income and the price limits of the home set according to MHC guidelines and federal tax law. The government gives an opportunity for home buyers to claim a deduction in itemized federal income tax for the entire interest paid on the mortgage loan each year.

As a borrower, the Hawaii mortgage credit certificate allows you to take a tax credit that equals to 40% of the yearly interest paid on the mortgage loan. The remaining 60% of the interest continue to qualify as an itemized tax reduction. The dollar amount of the tax credit is determined by the amount of interest paid on the loan. However, it is good to note that the amount of credit cannot exceed the annual federal income tax liability after all other deductions and credits have been considered.

In order to qualify for Hawaii Mortgage Credit Certificate, the maximum yearly income of the members of the household may not exceed a specific income limits. As a first time home buyer, you should not have owned a principal interest in a residence for a period of the past three years. The property must be occupied by the owner i.e. you should be the owner of the property. The residence should be your primary residence and must
be a single family residence.

In addition, the cost of the home should be within maximum acquisition price limits for the county that is located. You should have a sales contract including a legal document showing full description of the property. A home buyer education certificate from online course or traditional classroom is also required.

Visit : http://dbedt.hawaii.gov/hhfdc/mortgage-credit-certificate/ for more information

Hawaii Down Payment Assistance Programs

Hawaii Down Payment Assistance Programs
Hawaii Down Payment Assistance Programs

Hawaii residents, who are first time home buyers, can apply for Hawaii down payment assistance programs.

How do Hawaii down payment assistance programs work? First time home buyers can borrow some  amount of money, though they are required to have a mortgage from a conventional bank. The amount varies, though the limitation can reach to $40k. There is no need to pay for the loan interest, though borrowers should pay for the  principal amount. This is very helpful because borrowers can pay it for up to twenty-year period. There is another option at repayment time, in which borrowers may only need five or ten years to pay for the principal amount.

Buyers get instant approval, but they do not have to think about paying the loan fee and interest rate at all. Yet, there are some requirements to fulfill in which the property should be on Oahu and has met legal building code structure. The property should also pass the inspection of Housing Quality Standards which apply strict environmental reviews.

Applying for Hawaii down payment assistance programs is as easy as informing the mortgage lender on the application process. After the lender submit the loan related files for approval to the City, applicants should have accomplished home buyer education which is held by the Hawaii. There are some restriction. The borrower is required to be the owner of the property at all times. Whenever he or she needs to sell the house, he or she has to pay a certain amount of the loan balance back.

Below is a list of Hawaii Down Payment Assistance Programs: