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First-Time Home Buyers: Down Payment and Closing Costs Assistance

Programs from the Hawaii Home Ownership Center a Non-profit that can help you pay for the costs of purchasing a home for first-time home buying Hawaii residents

Navigating the realm of home ownership can be a complex journey, especially for first-time buyers. Amidst the excitement of purchasing a home, it is essential to be aware of the various fees associated with homeownership that may come as a surprise. These costs, often overlooked, must be carefully considered as they can present a potential barrier of entry. It is not uncommon for individuals to wonder, "Do I need to pay more than just the down payment?".


In this context, Ea Capital Partners recognizes the importance of shedding light on this matter and supporting initiatives that offer solutions to the affordable housing crisis in Hawaii, such as HHOC (Hawaii Home Ownership Center). However, please note that while we endorse and support such services and products, Ea Capital Partners is not affiliated with HHOC. Therefore, it remains your responsibility to proactively educate yourself about the programs and products available to make informed decisions.


Here are some awesome programs we beleive can help you on your journey to home ownership in Hawaii. Our recommendation is that even if you're not ready to buy a home yet, understand all the resources and programs that are available to you. Educating ourselves is the best way to increase the opportunities for us.


DOWN PAYMENT ASSISTANCE LOAN PROGRAM


HHOC Mortgage (HHOCM) is a 501(c)(3) non-profit affiliate of the Hawaii HomeOwnership Center.  It was formed to serve primarily low to moderate income families in obtaining financing for their first home purchase.


The DPAL Program provides a financing requiring only 3% down payment.


Benefits of the DPAL Program

  • Low 3% down payment requirement

  • Low monthly payment

  • Mortgage interest is tax-deductible, set at 4.5% or matches the first mortgage rate (whichever is lower)

  • No mortgage insurance

  • No pre-payment penalty

Since 2009, as Hawaii’s only non-profit mortgage broker we’ve been offering the full spectrum of loan products with rebate pricing & lenders’ credits. We help minimize Borrowers’ cash outlay for closing costs.



DEFERRED CLOSING COSTS ASSISTANCE LOAN


This program offers a 15-year deferred loan with NO interest and NO monthly payments.  The funds can be used towards your down payment, closing costs (including rate buy down).


Guidelines:


Low to moderate-income (120% AMI or below), First-Time Homebuyers

  • First-Time Homebuyer Education classes completed through Hawaii HomeOwnership Center

  • Up to $15,000 loan matched on a 6:1 basis

  • HHOC Mortgage must originate the first mortgage

  • Borrowers agree to use the property as their primary residence and sign a yearly occupancy affidavit

  • Available to borrowers STATEWIDE


*Special restrictions do apply, call today for more details.


Conventional: Loans that are not guaranteed or insured by the federal government. Usually follow Fannie Mae or Freddie Mac guidelines. If borrower puts less than 20% down payment, mortgage insurance is required.


USDA: Offers 100% financing. There is a guarantee fee and a monthly mortgage insurance premium. Property needs to be within eligible area.


VA: Veterans Administration. Great program for veterans with low interest rates and lender rebates. 100% financing. Must have served active duty for 181 days, 90 days during wartime, or 6-years Reserves / National Guard. VA funding fee, but no monthly mortgage insurance costs.


FHA: Federal Housing Administration. Low minimum down payment of 3.50%. Upfront mortgage insurance (MIP) and monthly mortgage insurance. Offers low down payment and little to zero closing cost.]]


STEPS TO HOME OWNERSHIPS by HHOC https://www.hihomeownership.org/steps-to-homeownership


About Hawaii HomeOwnership Center:


The Hawaii HomeOwnership Center will provide education, information and support to create successful first-time homeowners in Hawai'i. By addressing barriers and increasing rates of home ownership, the HomeOwnership Center aims to build stronger families and communities throughout the state of Hawai'i.


In addition to our program for first-time buyers, we added Foreclosure Prevention & Rental Counseling to support struggling renters and owners to understand their options and stay in their homes. We also created non-profit affiliates, HHOC Mortgage and HHOC Housing and Land Trust with missions to provide affordable financing and creating & preserving affordable homes.


Learn about HHOC: https://www.hihomeownership.org/

Learn about HHOC Downpayment and Closing Cost Programs : https://hhocmortgage.org/contact-us/

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