No-interest loans for down payments available to first-time homebuyers

No-interest loans for down payments available to first-time homebuyers
(Image: Hawaii News Now)

HONOLULU (HawaiiNewsNow) - A city program is offering qualified low- and moderate-income families interest-free down payments so they can purchase their first homes.

The city Department of Community Services has approximately $400,000 available annually in Federal HOME funds for the loan program.

They are accepting applications from applicants’ mortgage lenders for loans of up to $40,000.

“Homeownership is one of the ways families accumulate wealth, and this federal funding can help save thousands of dollars in interest payments over the life of a mortgage,” said Pamela Witty-Oakland, city Department of Community Services director, in a news release. “I urge qualified first-time homebuyers to take advantage of this proven gateway to financial security.”

Those interested are required to apply for a city loan through a mortgage lender after being approved for a first mortgage.

There is no cost to apply.

To qualify, applicants must provide 5 percent of the purchase price as a down payment and complete a homeownership course. A home inspection is also required.

Loans will be awarded on a first-come, first-served basis to qualified households.

For more information, call the Department of Community Services Loan Branch at 768-7076.

Copyright 2019 Hawaii News Now. All rights reserved.