Hawaii Hula Mae Loan Program

The Hawaii Hula Mae Loan Program, administered by the Hawaii Housing Finance and Development Corporation (HHFDC), is designed to help eligible residents of Hawaii achieve homeownership. By offering low-interest mortgages and down payment assistance, this program makes owning a home more accessible for individuals and families across the state.

Benefits

Provides 30-year fixed-rate mortgages with below-market interest rates for affordable and consistent monthly payments.
Offers optional down payment assistance to reduce upfront costs, helping buyers secure a home with less financial strain.
Supports first-time homebuyers and others purchasing in targeted areas, broadening access to affordable housing opportunities.
Can be used for new or existing single-family homes, condominiums, and other eligible properties.

Eligibility Requirements

Applicants must be first-time homebuyers or individuals who have not owned a primary residence in the past three years, unless purchasing in designated targeted areas.
Income limits apply and vary based on household size and the location of the property.
The property must be located in Hawaii and serve as the buyer’s primary residence.
A minimum credit score may be required, with lender-specific underwriting guidelines also applying.
Participants must complete a homebuyer education course to ensure they are prepared for the responsibilities of homeownership.

Additional Information

The Hula Mae Loan Program is a critical resource for Hawaii residents seeking to overcome financial barriers to homeownership. By providing affordable mortgage options and support for upfront costs, the program enables individuals and families to achieve stable housing while contributing to the overall economic growth and community well-being of Hawaii.

Frequently Asked Questions About Our Program

What is the Hula Mae Loan Program?

The Hula Mae Loan Program offers eligible first-time homebuyers in Hawaii 30-year mortgage loans at competitive interest rates, along with down payment assistance up to 3% of the purchase price, to facilitate affordable homeownership.

Who is eligible for the Hula Mae Loan Program?

Eligibility requires applicants to be Hawaii residents aged 18 or older, U.S. citizens or declarant aliens, and first-time homebuyers who have not owned a principal residence or held a beneficial interest in a land trust involving a principal residence within or outside Hawaii. Prior recipients of a Hula Mae loan are also ineligible.

What types of properties qualify for the Hula Mae Loan Program?

Eligible properties include new or existing single-family residences and townhouse or condominium units located within the State of Hawaii, intended to serve as the applicant's primary residence.

Are there income limits for applicants?

Yes, applicants' annual household income must fall within set limits, which vary by county and household size. For example, in Honolulu County, the limit is $123,600 for households of two persons or less, and $144,200 for households of three persons or more.

What are the purchase price limits for properties?

Purchase price limits vary by county and are subject to change. Applicants should consult with participating lenders to determine the current limits applicable to their desired property location.

Is homebuyer education required?

While the program does not explicitly mandate homebuyer education, it is highly recommended to ensure borrowers are well-prepared for the responsibilities of homeownership.

Can the Hula Mae Loan be used for leasehold properties?

Yes, provided the remaining term of the lease is at least 35 years, and the lease rent is fixed for no less than 10 years from the date of the mortgage loan.

Don't miss out!

Check out our program and get started today.

Get Started Now

Is there a minimum borrower contribution required?

The program does not specify a minimum borrower contribution; however, individual lenders may have their own requirements. It's advisable to discuss this with your chosen lender.

Are there any restrictions on selling a home financed with a Hula Mae Loan?

Yes, if you sell or dispose of your home within nine years of purchase, you may be subject to a federal recapture tax, which could increase your federal income taxes for the year of sale, depending on the gain from the sale and your income level.

Can the Hula Mae Loan be used to refinance an existing mortgage?

No, the Hula Mae Loan Program cannot be used to refinance existing mortgages; it is intended solely for the purchase of a new primary residence.

Is mortgage insurance required?

Depending on the loan-to-value ratio and the type of loan, mortgage insurance may be required. It's important to discuss this with your lender to understand any additional costs.

Are there any fees associated with the Hula Mae Loan Program?

Standard loan fees, such as origination and processing fees, may apply. Applicants should consult with participating lenders to understand all potential fees involved.

Can I apply for the Hula Mae Loan Program if I have previously received a Hula Mae loan?

No, prior recipients of a Hula Mae loan are not eligible to participate in the program again.

What happens if I no longer occupy the property as my primary residence?

You must occupy the property as your primary residence throughout the term of the Hula Mae Mortgage Loan or until the loan is paid in full. Failure to do so may cause the entire loan balance to become immediately due.

Don't miss out!

Check out our program and get started today.

Get Started Now

Are there specific debt-to-income (DTI) ratio requirements?

While the program does not specify exact DTI ratio requirements, individual lenders may have their own criteria. It's essential to consult with your lender to understand the specific DTI requirements applicable to your situation.

Is there a deadline to apply for the Hula Mae Loan Program?

There is no specific deadline; however, program availability is subject to funding, so it's advisable to begin the application process as soon as you are ready to purchase a home.

Can the Hula Mae Loan be used in conjunction with other down payment assistance programs?

Yes, the Hula Mae Loan can be combined with other assistance programs, subject to approval and program guidelines. Applicants should discuss options with their lender.

Are non-occupant co-borrowers allowed?

No, all borrowers must occupy the property as their primary residence. Non-occupant co-borrowers are not permitted under this program.

What are the repayment terms for the down payment assistance?

The down payment assistance is provided as a second mortgage loan with a 0% interest rate, deferred for the life of the loan. Repayment is required upon sale, refinancing, or if the property ceases to be the primary residence.

How do I apply for the Hula Mae Loan Program?

To apply, you must work with a participating lender who will guide you through the application process, including verifying eligibility, assisting with necessary documentation, and explaining program requirements.