First time home buyer Hawaii programs combine with federal programs to give new would be homeowners a leg up in the real estate market. With low mortgage interest that are scraping all time bottom rates and monthly payments that are less than rent in cities like Hilo and Kailua, now is the time to take advantage of first time home buyer programs. Here are some of the most effective ways to get into the exclusive, expensive real estate market in Hawaii using every tool in the box.
Is There a State Agency That Corresponds With Federal Programs?Â
The Hawaii Housing Finance and Development Corporation (HHFDC) is the state program with the information and the access to the majority of the grant and incentive programs in Hawaii real estate.
The Hula Mae program is a Hawaii-centric program that resembles Fannie Mae and recieved $43 million in funds to loan specifically to first time home buyers in 2012; however, this program is no longer active according to the HHFDC website.
What Federal Agencies Work With the HHFDC?
The Federal Housing Administration (FHA), the United States Department of Veterans Affairs (VA), and the United States Department of Housing and Urban Development (HUD) are three of the major federal agencies that work with the HHFDC. If you qualify for one or more of these loans, then you will be able to work more easily with the HHFDC when you are trying to buy a house in Hawaii.
Because of the high prices of Hawaii real estate, HUD is one of the most prevalent agencies in the state. There are higher percentages of Section 8 programs in Hawaii than in most states, and the state is also very big on its Fair Housing Act, an act that prohibits discrimination in housing. As for the other federal agencies, the VA only applies if you are a veteran, the spouse of a veteran, or a reservist who has a service record of six years or more. The FHA has the most wide reaching program of all the federal agencies. HUD also works with the local Public Housing Agency to institute the Housing Voucher Program in Hawaii.
In order to qualify for an FHA loan, and in turn qualify for HHFDC loans, you will need a credit score of at least 620. You cannot have owned a primary residence within the past three years, which means that you can actually qualify as a first time home buyer even if you have bought a house before.
What Is a Mortgage Credit Certificate?
A mortgage credit certificate (MCC) gives a potential home buyer a federal tax break that can turn into increased income for qualification purposes. The HHFDC is the issuing body on behalf of the state for federal mortgage credit certificates. Although you can get financing for a home from any lender, only a few lenders in Hawaii have the ability to issue an MCC to you.
Are There Any Differences in First Time Home Buying Because Hawaii Is a High Value Location?Â
Hawaii is one of the markets that is defined as a high value market, meaning that conforming loans are not limited at the lower Federal Housing Financing Agency (FHFA) rate of $417,000, but at the higher FHFA rate of $723,000.
What Is the Single Family Housing Guaranteed Loan Program in Hawaii?
The Single Family Housing Guaranteed Loan Program in Hawaii helps people to purchase safe and sanitary housing in eligible rural areas around the state. The guaranteed loan program tries to reduce the prevalence of 100 percent loans by extending 90 percent loans to qualified lending institutions such as the Bank of Hawaii. You must also usually qualify for a federal program as well.
What Are Single Family Housing Direct Home Loans in Hawaii?
Single Family Housing Direct Home Loans in Hawaii are meant to assist very low income borrowers getting into sanitary, safe housing. This subsidy is given to the borrower in the form of a subsidy that reduces the monthly mortgage payment for a short amount of time. Eligibility is determined by the adjusted family income, and the program tries to focus on borrowers who cannot obtain funding from any other sources. However, you cannot be suspended from participating in federal programs.
What Are Single Family Housing Repair Loans and Grants in Hawaii?
The Single Family Housing Repair Loans & Grants in Hawaii program is also known as the Section 504 program. Low and middle income households have a chance to improve housing that is shown to have health and safety hazards. This program is meant to help people who cannot apply for other types of loans. Grants are reserved for people who are 62 years of age or older and completely unable to pay any other repair loan.
What Is the First-Time Home Buyer’s Loan Program From the Bank of Hawaii?
The Bank of Hawaii is one of the largest banks in the state, and its First-Time Home Buyer’s Loan Program is one of the best in the nation. The bank gives its borrowers a chance to qualify for a discount of up to 0.5 percent off of loan points. Borrowers can work with fixed or adjustable rates, and the program also offers reduced closing costs and no prepayment penalty.
2 Point Highlight
The Federal Housing Administration (FHA), the United States Department of Veterans Affairs (VA), and the United States Department of Housing and Urban Development (HUD) are three of the major federal agencies that work with the HHFDC.
The Single Family Housing Guaranteed Loan Program in Hawaii helps people to purchase safe and sanitary housing in eligible rural areas around the state.
