HONOLULU (KHON2) — The City is offering qualified low income and moderate income households interest free down payment loans to assist in the purchase of a new home.
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The Department of Community Services (DCS) announced that it has $800,000 available in home funds for the remainder of this fiscal year. DCS says it is currently accepting applications from applicants’ mortgage lenders for loans up to $40,000.
Eligible households include those earning 80% of the area median income or below, which is approximately $80,600 for a family of two or $100,700 for a family of four. Interested Oahu families are required to apply for a city loan through a mortgage lender after being approved for a first mortgage. DCS says there are no application costs.
To qualify, applicants must provide five-percent of the purchase price as a down payment and complete an approved homeownership course. A home inspection is also required, according to DCS.
Loans will be awarded on a first-come, first-served basis to qualified Oahu residents.
“Homeownership is a critical pathway for kamaʻāina families to achieve wealth, and this federal funding is an opportunity to avoid thousands of dollars in unnecessary interest payments over the life of a mortgage,” said DCS Director Designate Sarah Allen. “I strongly encourage all qualified first-time homebuyers to take advantage of this opportunity for financial stability for your ʻohana.”
For more information, please contact the City and County of Honolulu’s Department of Community Services, Loan Branch at 768-7076 or click here.