A state initiative aims to reduce the cost of becoming a homeowner and enhance housing opportunities for Hawaiʻi residents.
Hale Kamaʻāina is a new program established by the Hawaiʻi Housing Finance and Development Corporation that offers first-time homebuyers below-market-rate mortgages.
Under new incentives approved by the Hawaiʻi Housing Finance and Development Corporation Board last week, the first 35 homebuyers who close their loans will receive up to $3,000 for closing costs, prepaid expenses, and reserves.
Hale Kamaʻāina’s main attraction is that it offers first-time homebuyers in Hawaiʻi 30-year, fixed-rate loans at significantly lower interest rates than market-rate loans. Mortgage rates could be as low as 5.4%, including down payment assistance and low upfront costs.
The program is financed through tax-exempt mortgage revenue bond proceeds.
According to Dean Minakami, the executive director of the Hawaiʻi Housing Finance and Development Corporation, the corporation recognizes the barriers faced by first-time homebuyers in Hawaiʻi.
“We are pleased to offer this program to help kamaʻāina families purchase their first homes,” Minakami said.
Eligible first-time homebuyers should apply for first-mortgage loans through one of about 12 participating lenders.
To qualify for Hale Kamaʻāina, the homebuyer must be a U.S. citizen or resident alien who lives in Hawaiʻi and must not have owned a primary residence in the past three years.
For a full list of participating lenders, eligibility requirements, and other details about the program, visit the Hawaiʻi Housing Finance and Development Corporation website.
