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Financial Workshop for Hawaiian Homestead Home Owners
The Waimanalo Hawaiian Homes Association sponsored a financial workshop for Homestead home owners. The half-day workshop covered topics such as how to fill out a loan application, create a budget for a new home, and apply for specific loan types: construction, home improvement and consumer loans.
Wilson Kekoa Ho, Neighborhood Board member, and Dan Kelii, Loan Manager for the Department of Hawaiian Home Lands, brought bank representatives to help explain the process of determining eligibility and applying for a loan. The loans, administered by First Hawaiian Bank, are in partnership with the Office of Hawaiian Affairs and the Department of Hawaiian Home Lands.
Who is Eligible?
If your home is on Hawaiian Homestead Lands and you want to remodel it, add some improvements, or upgrade it in general, a loan may be made for up to $50,000. If you are applying to purchase a home on Homestead lands you may borrow up to $20,000 for the downpayment.
Certain qualifications apply:
You and your co-borrower (if any) must be creditworthy and have enough uncommitted income to make the monthly loan payments.
You must be an owner-occupant of the home for the life of the loan.
You do not presently own or have an ownership interest in any other principal residence (or a land trust with a residence) within or outside the State of Hawai'i.
Your combined family income does not exceed maximum household limits. For a family of 3 or more: $69,800; for a family of less than 3: $59,800.
Loan Terms
The interest rate on the Home Improvement and the Downpayment loans is 67/8% fixed for the full term of the loan. The Loan Fee (points) is 1.00%, and the maximum loan term is ten years. Monthly payments will be based on a 20 year payout (amortization). The unpaid balance will be due in full at the end of ten years. This "balloon payment" is usually refinanced by means of a new loan.
Other requirements include the amount of aggregate debt of the borrower. For the Home Improvement Loan the borrower must provide a construction contract from a licensed contractor, a building permit and 100% Labor and Material Payment Bond for improvements over $10,000. In addition, payments will be made directly to the contractor or bonding company.
For additional information regarding loans on Hawaiian Homestead lands, contact Wilson Kekoa Ho at 536-4388.
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