Hawaii Hula Mae Down Payment Assistance Program Guide

Guide to the Hawaii Hula Mae Down Payment Assistance Program

The Hula Mae Down Payment Assistance Program is designed to provide financial support to first-time homebuyers in Hawaii. This program helps eligible buyers cover the costs of down payments, making homeownership more attainable for residents of Hawaii. For 2025, the program continues to offer assistance to reduce the upfront financial burden, enabling more individuals and families to achieve their homeownership goals. Below is a guide that outlines the program's key benefits, eligibility requirements, and how to apply.

1. Program Overview:

• Purpose: The Hula Mae Down Payment Assistance Program offers financial help to first-time homebuyers to cover the costs of down payments and related expenses when purchasing a home in Hawaii.
• Assistance Amount: Eligible buyers can receive up to $10,000 in down payment assistance. This support can be used toward the down payment and other eligible homebuying expenses.
• Loan Structure: The assistance is provided as a second mortgage, which is generally deferred for up to 10 years, depending on the terms of the loan. This reduces the immediate financial burden on the buyer and helps them secure an affordable primary mortgage.

2. Eligibility Requirements for 2025:

To qualify for the Hula Mae Down Payment Assistance Program, you must meet the following criteria:

• First-Time Homebuyer: This program is primarily available to first-time homebuyers. Generally, this means you have not owned a home in the past three years. Exceptions may apply for certain categories, such as veterans or those purchasing in certain designated areas.
• Income Limits: Your household income must fall within the program’s established limits, which are based on the area median income (AMI) for your county. These limits are adjusted annually to reflect the cost of living and housing market conditions.
• Credit Score: A minimum credit score of 640 is generally required to participate in the program. Lenders may have additional or more flexible criteria depending on other factors, such as debt-to-income ratio.
• Property Requirements: The home being purchased must be located in Hawaii and must be used as your primary residence. The property must also meet the program's price limits to ensure it remains affordable for first-time buyers.
• Homebuyer Education: Completion of an approved homebuyer education course is required for all applicants. This course ensures that buyers are well-prepared for the responsibilities of homeownership and have the necessary knowledge to manage their finances effectively.

3. How to Apply:

Applying for the Hula Mae Down Payment Assistance Program is a simple process. Follow these steps to get started:

• Assigned Loan Officer: Once you start the application process, a loan officer will be assigned to guide you through each step. The loan officer will assist with verifying your eligibility, answering any questions you have, and helping you gather the required documentation.
• Required Documentation: Be prepared to submit documentation such as proof of income, credit reports, tax returns, and a certificate of completion for the homebuyer education course.
• Submit Your Application: After gathering the necessary documents, submit your application to your loan officer. They will process your application and inform you of your eligibility, as well as guide you through the next steps in the process.

4. Homebuyer Education Course:

• Mandatory Requirement: All applicants must complete a homebuyer education course. This ensures you are well-prepared for homeownership and have the knowledge to manage your mortgage and home maintenance effectively.
• Course Availability: The course is available online or in-person, depending on your preference and availability. Upon completion, you will receive a certificate that must be submitted as part of your application.

5. Down Payment Assistance Details:

• Assistance Amount: The program offers up to $10,000 in down payment assistance to help with the upfront costs of purchasing a home. This assistance can be used for the down payment, closing costs, and other eligible expenses involved in the home purchase process.
• Repayment Terms: The assistance is provided as a second mortgage, which is typically deferred for up to 10 years, depending on the terms of your mortgage. The loan may be forgiven after this period if you meet the program's terms, such as staying in the home for the required amount of time.

6. Finalizing the Loan:

• Approval Process: After your application is approved, your loan officer will help you review and sign your loan documents, ensuring that you understand the loan terms and the final steps before closing.
• Closing Costs: While the program covers down payment assistance, you may still be responsible for some closing costs. Your loan officer will provide a breakdown of these costs and clarify which fees are covered by the program and which are your responsibility.

Our dedicated loan officers are here to make your homebuying experience as smooth as possible. They will provide guidance and support at every step, helping you fully understand the terms of the Hula Mae Down Payment Assistance Program and ensuring you make informed decisions. With their assistance, you can take advantage of this program and confidently work toward homeownership in Hawaii.