Section 184A Native Hawaiian Housing Loan Guarantee Program

• Offers a low down payment (1.25% - 2.25%), no mortgage insurance (MI), and flexible underwriting
• Loan guaranteed by U.S. Department of Housing and Urban Development
• Up to 97.75% Loan to Value (LTV) on purchase
• Cash out not available
• 1% financeable loan guarantee fee in place of MI
• More favorable of the two loan programs but a bit more stringent to qualify

Section 247 Loan Program

• Offers a low down payment (3.5%) and a one-time upfront mortgage insurance premium
• Loan guaranteed by the Federal Housing Administration
• Up to 96.5% LTV on purchase
• Up to 85% LTV cashout
• One time upfront MI premium 2.344% - 3.8% based on term and if the MI is financed

Qualification Criteria

• Must be at least 18 years of age
• Must be a native Hawaiian, defined as “any descendant of not less than one-half part of the blood of the races inhabiting the Hawaiian Islands previous to 1778.” Essentially one must possess blood quantum of at least 50 percent Hawaiian.
  Source: Hawaiian Homes Commission Act of 1920