Hawaii Mortgages and Loans 101: Downpayments

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Real Estate

Downpayments: where is all that money coming from? 

Want to buy a home but can’t seem to get ahead enough to save for the down payment? There are programs available to help people with decent credit and stable work histories get a home without having to save up for years while pouring rent money down the drain. 

As you might expect, many programs have income/asset restrictions, recapture clauses, reserves required or geographic boundaries.

FHA Loans have been helping people become homeowners since 1934. How do they do it? The Federal Housing Administration (FHA) - which is part of HUD - insures the loan, so your lender can offer you a better deal.

Low down payments
Low closing costs
Easy credit qualifying
What does FHA have for you?

Buying your first home?
FHA might be just what you need. Your down payment can be as low as 3.5% of the purchase price. Available on 1-4 unit properties.

Want to make your home more energy efficient?
You can include the costs of energy improvements into an FHA Energy-Efficient Mortgage.

Need advice? Contact a HUD-approved housing counselor or call 800-569-4287

USDA home loans in Hawaii can be a great option for people hoping to purchase a home in qualifying areas. The USDA Loan program in Hawaii offers very low interest and mortgage rates. Also, it is the only loan program in Hawaii that requires no down payment thus making it an ideal loan program for those who struggle to buy a house in Hawaii owing to financial constraints. USDA loans are designed for middle to low income families with a decent credit history. The factors that will determine your USDA eligibility are current income, credit history and also the zip code of the country where the home is situated. USDA loans have been specifically created for moderate to low income households thus; there is a maximum income limit for each USDA loan eligible country.

To be eligible for USDA Loans in Hawaii, your yearly income should be less than 115% of the average median income for that area. You will qualify for a USDA Loan if your income is quite less than the average median income. USDA Loans in Hawaii comes with really low interest rates, and is backed 100% by USDA but funded by various lending institutions. You should have an average credit score of at least 640, maintain a steady flow of income, and should have no foreclosures that are unsettled and no bankruptcies in the past 3 years. If you fulfill all these criteria then, you will be eligible for USDA Loan in Hawaii. Most importantly, your home should be located in the USDA designated area; the same may differ from country to county but is usually located outside a major city. USDA designated area has a population count of less than 20,000 residents.

Talk to your lender or a USDA Loan representative to see how you can qualify 877-224-2260.

The Hawaii HomeOwnership Center offers would-be home buyers the tools and knowledge they need to become informed consumers and successful home buyers. 9 hours worth of Homebuyer’s Education courses provide an overview of the home buying process and what lenders expect (online education also available). Counselors help homebuyers address their obstacles to home ownership (including downpayment assistance). The Center continues to provide educational opportunities and counseling after the purchase to ensure your success as a home owner. Check out their Low 5% Down Payment Assistance Loan Program for owner occupant first-time homebuyers and learn more about the Center at hihomeownership.org.