HONOLULU – Qualified low-income and moderate-income households may be eligible for interest-free down payment loans to assist in the purchase of their new home.

Director Anton Krucky, Department of Community Services (DCS), made the announcement with anticipation to get more people applying to buy a home. DCS said they have $380,000 in HOME funds for the remainder of this fiscal year and is currently accepting pre-eligibility inquiries for loans up to $40,000.

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To be eligible, households need to be earning 80% of the area median income or below, which is currently $77,350 for a family of two or $96,650 for a family of four. Loans will be awarded on a first-come, first-served basis to qualified Oahu residents.

“Homeownership is a critical pathway for 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 Krucky. “We strongly encourage all qualified homebuyers to take advantage of this opportunity for financial stability for your ʻohana.”

Interested Oahu families are asked to call the Loan Branch and speak with one of the City Loan Officers for an initial loan eligibility review. If the applicants are eligible, they can apply with a first mortgage lender and work with a real estate agent of their choice. 

There are no application costs for the City Down Payment Loan. 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.

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For more information, please contact the City and County of Honolulu, Department of Community Services, Loan Branch at (808) 768-7076 or click here