Are you considering buying your first home in Hawaii? The idea of owning a house in paradise has its allure but embarking on the homeownership journey as a first-time home buyer in Hawaii can be overwhelming. If you need help or are trying to figure out where to begin (and nobody wouldn't amidst all this confusion and worry), reach out to Loan Factory. We'll walk you through all the available options and ensure you secure the optimal loan as a newbie seeking to own your first home in Hawaii. Let's face it: we want you to start this new chapter in your life with excitement and confidence. Let's join Loan Factory to explore first-time home buyer loans in Hawaii.
A first-time homebuyer is usually someone who hasn't owned a home in the past three years. This includes those who have owned a home before but have been renting or living with family for the last three years. Knowing this is important because it means you could qualify for different programs that make buying a home more affordable.
Hawaii First-Time Home Buyer Programs
1. HHOC Mortgage Down Payment Assistance Loan Program
The HHOC Mortgage Down Payment Assistance Loan Program is a great help for first-time homebuyers in Hawaii. It offers a low-interest loan to cover your down payment and closing costs, making it easier to afford your first home. To qualify, you'll need to meet certain income requirements and be buying a primary residence.
- Down Payment Assistance Loan (DPAL):
This program offers a second mortgage of up to $125,000, paired with a first mortgage that requires only a 3% down payment. The interest rate is capped at 4.5%. To qualify, your income must be at or below 120% of the area's median income.
- Deferred Closing Cost Loan:
This is a 15-year deferred matching loan that can provide up to $15,000 for your closing costs on a 6:1 matching basis. For example, if you can put $2,500 towards your closing costs, you could get $15,000 in assistance. This loan doesn’t accrue interest and doesn’t require monthly payments.
2. HHFDC Mortgage Credit Certificate Program
The HHFDC Mortgage Credit Certificate Program gives first-time homebuyers a federal tax credit. This means you can claim part of the mortgage interest you pay each year as a tax credit, which lowers your federal taxes. To qualify, you need to meet specific income and purchase price limits set by HHFDC.
3. Other Hawaii homebuyer assistance programs by location
Home-buying assistance in Hawaii varies by location, with specific programs available in different counties and cities.
- Kaua’i County Housing Agency Home Buyer Loan Program:
This program offers low-cost primary and gap mortgages to first-time homebuyers on Kaua’i who meet income qualifications. It's designed to make buying your first home on the island more affordable.
- City and County of Honolulu Down Payment Loan Program:
Managed by the Department of Community Services, this program uses HUD funds to help income-qualifying families with a 0% interest second loan for their down payment. This assistance makes it easier for families to afford their first home in Honolulu.
Additional Loan Options
Beyond the state-specific programs, there are several additional loan options for first-time home buyers in Hawaii:
- FHA Loans: These are backed by the government and require low down payments. They can be obtained even if you have a poor credit score.
- VA Loans: These are available to veterans and active members of the military and do not require any down payment. The interest rates offered are competitive as well.
- USDA Loans: These are primarily meant for rural home buyers with zero down payment and low interest rates on eligible properties and buyers.
- Conventional Loans: Conventional loans generally require a higher credit score and a significant down payment, but they may suit individuals who meet the criteria.
Visit our website to check mortgage interest rates today and call us at 714-444-9999 to pave your path towards owning a home - the first step towards realizing your dream. Our team of specialists pledges their commitment to assist you through every stage of the process, transforming the intricacies of the first-time home buyer loan process in Hawaii from a cumbersome procedure into one that is smooth and stress-free. The dream of owning a home in paradise can now become a reality; let us be your guide throughout this journey. Don't forget to snag our First Time Home Buyer Checklist.
