 |
Frequently Asked Questions
Answers to Your Questions About Ho'olako Pono Loan Program
As you consider a loan through the Ho'olako Pono Loan Program, you may have some basic questions about the loan and program. The following is a list of the most frequently asked questions.
Where do I begin, with American Savings Bank or DHHL?
If you are a current lessee with an existing mortgage, or if you are interested in building a home or prequalifying for a loan, an American Savings Bank loan officer will be more than happy to assist you. If you are on the waiting list and eligible for upcoming DHHL projects, please consult a DHHL representative. DHHL's Home Ownership Assistance Program (HOAP) helps native Hawaiians eligible for Hawaiian Home Lands to access the necessary services and information to become financially qualified for upcoming homeownership opportunities. For more information, contact DHHL's HOAP toll-free at 1-866-897-4384.
Can you tell me about the program?
The loan program is a conventional loan, not a government loan, such as FHA, VA or RHS. This new program will utilize private mortgage insurance from Mortgage Guaranty Insurance Corporation (MGIC).
What makes this program different from what is now available?
Instead of a government guaranty to insure the loan, this program will utilize private mortgage insurance. Higher loan amounts are available for all counties as compared to government loans, and this program also allows construction financing up to these higher loan amounts.
What is MGIC's role as the mortgage insurance company?
Mortgage insurance is required for the life of the loan under this program. MGIC is the private mortgage insurance company that will be insuring these loans.
Who can be on the loan?
The lessee(s) will be on the loan by signing the note and mortgage documents. Non-lessees can sign the note only as co-borrowers. All signers must reside in the property for which the loan is made.
What is the minimum down payment?
There is no minimum and 100% financing is available.
Are interest rates fixed or variable?
Fixed. Principal and interest payments will remain the same over the life of the loan.
What are the loan limits?
The maximum loan amount available under the program is $625,500.
What kind of interest rate will we get?
Rates are determined by the secondary market and can vary daily. The important thing is that a borrower on DHHL land utilizing this program will receive the same interest rate as a non-DHHL borrower who is equally creditworthy.
What purposes can this loan program be used for?
You can use this loan program to purchase a home, finance construction of a new home or refinance an existing home mortgage.
Do we need infrastructure in the subdivision?
Yes. Roads and utilities must be accessible to the vacant lot before construction. However, if it is typical for the area to have water catchment and/or generators, then these are acceptable.
|
 |
