Ka Wai Ola - Office of Hawaiian Affairs, Volume 21, Number 10, 1 October 2004 — Homeowner program [ARTICLE]

Homeowner program

Native Hawaiians hoping to purchase a home in the state should be aware that the OHA 103 Loan Program still gives eligible Hawaiians access to a mortgage program designed to provide 103 percent financing that will eliminate the need for a downpayment and minimize closing costs. Created in May 2002, the OHA 103 Loan Program, a partnership between the agency, Bank of Hawai'i, First Hawaiian Bank and Fannie Mae, was allocated $135 million in financing to offer Native Hawaiians mortgage loans and informational workshops. Homes eligible for mortgages under the program must be located within the state and ean be new or existing single-family residences and approved townhouse or condominium units. The home cannot be on DHHL land and must be the loan recipient's primary See BRIEFS on page 27

BRIEFS from page 4

residence for the life of the loan. Fixed-rate mortgages are available for homes up to $451,050. Interest rates are set according to the current market rates offered by Bank of Hawai'i and First Hawaiian Bank. Borrowers receive two loans for 103 percent of the home value. The first loan is 100 percent of the home value and the second loan is up to 3 percent of the purchase price. This allows borrowers to finance costs associated with their home purchase. The maximum term for the first mortgage is 30 years, and 15 years for the second. The mortgage will cover most closing costs and is guaranteed by OHA. For more information on the OHA 103 Loan Program, please eall 594-1926. ■