Hawaii Hula Mae Loan Program Guide

Guide to the Hawaii Hula Mae Loan Program

The Hula Mae Loan Program is designed to help first-time homebuyers and those purchasing homes in Hawaii by offering affordable mortgage options with competitive interest rates. This program is aimed at making homeownership more attainable for eligible residents of Hawaii. For 2025, the program continues to offer low-interest, 30-year fixed-rate loans and financial support to those looking to buy a home in the state. Below is a detailed guide to help you understand how the program works, eligibility requirements, and how to apply.

1. Program Overview:

• Purpose: The Hula Mae Loan Program provides affordable mortgage financing to first-time homebuyers and residents purchasing a home in Hawaii. The program is designed to help make homeownership more accessible by offering favorable loan terms and lower monthly payments.
• Loan Terms: The program offers a 30-year fixed-rate mortgage, ensuring stable monthly payments over the life of the loan. Interest rates are competitive, making the loan more affordable for eligible applicants.
• Down Payment Assistance: In addition to low-interest loans, the Hula Mae Loan Program offers down payment assistance to qualified buyers. This assistance helps cover upfront costs, reducing the financial burden of purchasing a home in Hawaii.

2. Eligibility Requirements for 2025:

To qualify for the Hawaii Hula Mae Loan Program, applicants must meet the following criteria:

• First-Time Homebuyer: The program is primarily designed for first-time homebuyers, which are typically defined as individuals who have not owned a home in the past three years. Some exceptions may apply, such as for qualifying military veterans or those purchasing in certain areas.
• Income Limits: Applicants' household income must fall within the program's income limits, which are determined based on the area median income (AMI) for the county or region in which the home is being purchased. These limits are updated annually to reflect the economic conditions in Hawaii.
• Credit Score: A minimum credit score of 640 is required to be eligible for the Hula Mae Loan Program. Some flexibility may be available depending on other factors, such as debt-to-income ratios and financial stability.
• Property Requirements: The home being purchased must be located in Hawaii and must be used as the applicant’s primary residence. The property must also fall within the program's price limits to ensure it remains affordable for first-time buyers.
• Homebuyer Education: Completion of a homebuyer education course is typically required for applicants to ensure they are well-prepared for the responsibilities of homeownership and understand the terms of the mortgage.

3. How to Apply:

The application process for the Hawaii Hula Mae Loan Program is straightforward. Follow these steps to get started:

• Assigned Loan Officer: Once you begin your application, a dedicated loan officer will be assigned to guide you through the process. Your loan officer will help verify your eligibility, answer questions, and assist with gathering the necessary documentation.
• Required Documentation: Be prepared to provide documentation such as proof of income, tax returns, credit reports, and a certificate of completion for the homebuyer education course.
• Submit Your Application: After gathering all required documents, submit your application to your loan officer. They will review and process the application, then inform you of your eligibility and next steps in the process.

4. Homebuyer Education Course:

• Mandatory Requirement: All applicants are required to complete an approved homebuyer education course. This ensures that buyers are equipped with the knowledge needed to make informed decisions about purchasing and maintaining their home.
• Course Options: The homebuyer education course is available online and in-person, allowing applicants flexibility in how they complete it. Upon completion, you will receive a certificate, which must be submitted as part of your application.

5. Down Payment Assistance:

• Assistance Amount: The Hula Mae Loan Program provides down payment assistance to eligible homebuyers to help with the upfront costs of purchasing a home. The amount of assistance varies depending on the applicant’s financial needs and the purchase price of the home.
• Assistance Terms: The down payment assistance is generally provided as a grant or a deferred loan that does not require repayment if the borrower meets certain conditions, such as remaining in the home for a specified period.

6. Finalizing the Loan:

• Approval Process: After your application is approved, your loan officer will guide you through the remaining steps, including reviewing and signing the loan documents, and preparing for the closing process.
• Closing Costs: While the Hula Mae Loan Program helps with down payment assistance, you may still be responsible for some closing costs. Your loan officer will provide a detailed breakdown of all the costs involved in your home purchase and clarify which are covered by the program.

Our experienced loan officers are dedicated to assisting you throughout the entire homebuying process. They will provide guidance and support at every step, ensuring that you fully understand the terms of the Hula Mae Loan Program and can confidently move forward toward homeownership. With their expertise, you can take advantage of this valuable program and make your dream of owning a home in Hawaii a reality.