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: