These costs include a variety of fees, including mortgage loan origination fees, the appraisal, property tax, and more. For example, if you purchase a home and finance $400,000, closing costs may range from $8,000 to $20,000. The program’s purpose is to help borrowers afford the costs associated with purchasing a first home, including down payment and closing costs.Ĭlosing cost expenses range from 2% to 5% of the mortgage amount. The Hawaii Homeownership Center offers first-time home buyers a down payment assistance loan. HHOC Mortgage Down Payment Assistance Loan Program A list of qualified lenders can be found through the HHFDC. Income and tax limits apply, depending on the county in which you live.Īpplying for the loan requires you to work with an approved lender.The mortgage must be a new loan in order to qualify for the MCC program.For example, if you decide to rent the home in the future, you aren’t eligible for the MCC tax credit. The property must be your primary residence.The program has a few eligibility requirements, including the following: The tax credit remains in place for the life of the loan, allowing homeowners to save potentially thousands of dollars each year. The MCC program enables homeowners to receive a federal tax credit for up to 20% of mortgage interest each year. The HHFDC offers a mortgage credit certificate (MCC) program to first-time home buyers. Applications and more details can be found on the HHFDC website.
These funds are used to help other first-time home buyers purchase below-market-price homes. The HHFDC program also requires that you pay back at least part of any equity that you gain. If you are wondering about the average age to buy a house, we suggest taking a look at this article. There are also restrictions around refinancing the home within the first 10 years. If you decide to sell the property sooner, the HHFDC can purchase back the property. The HHFDC does have a “buyback program” and requires that you live in the home for at least 10 years. You cannot currently own any other properties.The unit purchased must be owner-occupied.You must be a legal resident of Hawaii.Eligibility criteria include the following: If selected, you have an opportunity of purchasing a new home. Acceptance to the program enters you into a lottery. For example, these prices may range from $250,000 to $500,000 depending on the home’s details and size. Qualified Hawaii residents have an opportunity to purchase a new home from the HHFDC at prices lower than the market rate. Understanding the available programs and where to look for help are the first steps toward owning your first home in Hawaii. Hawaii programs decrease the purchase price to make home buying more affordable for low- and moderate-income households. These programs are designed differently from first-time home buyer programs in other states, which typically offer low-interest mortgages or flexible terms. Special first-time home buyer programs allow you to purchase an affordable home. The median price for a single-family home in the state recently reached $835,000. You have not only the typical first-time home buyer challenges such as saving for a down payment, but also the hurdle of rising home prices. Federal programs offer additional options for Hawaii first-time home buyers.īuying your first home in Hawaii can feel like an overwhelming task.Down payment assistance helps to lower upfront costs, including the down payment and closing costs.An affordable resale program allows you to get into a home at a below market purchase price.Contact a Hawaii lender to learn more about local requirements for mortgages. Typically, home values increase over time. Home values are constantly changing depending on buyer demand and the local market. This ensures you’re not paying more for a home than it’s worth on a purchase transaction and verifies the amount of equity available on a refinance transaction. Though, refinance rates can be higher.Ī lot of lenders will require an appraisal during the mortgage process to determine the fair market value of a property. The APRs on this page are for purchasing mortgages, which are typically similar to refinance rates. If you already have a mortgage and are considering a refinance, get customized rates for your unique circumstances. Also check Hawaii rates daily before acquiring a loan to ensure you’re getting the lowest possible rate. To set yourself up for success and help you figure out how much you can afford, get pre-qualified by a licensed Hawaii lender before you start your home search. Loan programs and rates can vary by state.
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