City seeks applicants for interest-free down payment loans

City seeks applicants for interest-free down payment loans
(Image: Hawaii News Now/File)

By Samantha Brooks
HNN Spring Intern

The city is accepting applications for federal interest-free down payment loans.

Low- and moderate-income families can receive a loan of up to $40,000 as a down payment.

The city is looking to disperse $410,000 in Federal HOME funds.

There's no cost to apply, and city officials are encouraging families to take advantage of the opportunity.

"This federal funding can help Oahu families purchase a home and save thousands of dollars in interest payments," Mayor Kirk Caldwell said, in a news release. "I urge qualified households to take advantage of this gateway to homeownership and financial security."

Interested families must first apply for a loan through a mortgage lender after being approved for a first mortgage.

To qualify, applicants must provide 5 percent of the purchase price as a down payment and complete a home inspection.

They also must take an approved homeownership course.

For more information, please call the city Department of Community Services Loan Branch at (808) 768-7076.

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