Here’s some information on our Down Payment Assistance Loan (DPAL) Program. Basically we do a 80/15/5 with no mortgage insurance. The first mortgage is a 30 year fixed rate. The second mortgage (DPAL) is amortized for 20 years with a 15 year term. The rate on the second is fixed for 15 years.
· First-Time Home Buyers only· Household income restriction
· As low as 5% needed for the Down Payment
· DPAL is a “fixed rate” second mortgage (not a line of credit)
· Low monthly payments· No mortgage insurance added to the monthly payment
· No pre-payment penalty· Loan application must be originated from HHOC Mortgage
· * Certain restrictions may apply
Program OverviewThe Hawaii Family Finance Project (HFFP) is focused on increasing homeownership and financial literacy in Hawaii.
The projectoffers financial education services through group education sessions and one-on-one counseling.
It also offers homeownershipincentives like a savings-match program.
The Council for Native Hawaiian Advancement is administering the project – Hawaii HomeOwnership Center is one of the partneragencies providing direct services to clients and promoting access to the programs offered.
• 18 years of age or older
• Do not currently own, hold title to, or pay a mortgage on a residence
• Low-to Moderate Income (below 80% of the HUD Area Median Income based on chart below) or Low-Wealth (total assetsminus total liabilities equals less than $120,300)
The niche feature of the DPAL Program is accepting condominium or townhouse properties when the owner occupancy ratio is under 50%.
We have accepted condos that had occupancies in the high 20’s – with just 5% down.
Now we are requiring the condo project is a Fannie Mae warrantable condo.
These types of condo are not eligible as a warrantable condo:
Condo’s with litigation Condo-tel’s Leasehold units (we will finance a fee simple unit if the project has a mixture of leasehold/fee simple units) Condo’s with timeshares or vacation rentals Co-ops Non-warrantable condo’s These condo’s generally require 25% or more down payment.