Interest-free down payment home loans available to low-income families

Interest-free down payment home loans available to low-income families

HONOLULU (HawaiiNewsNow) - Looking for an interest-free down payment loan for a home? (Who isn't?)

The city says low- and moderate-income families might be eligible for interest-free down payment loans for up to $40,000.

To qualify for the loan, families can't earn more than 80 percent of area median income. For a family of four, that's $76,650.

The loans are awarded on a first-come, first-served basis to qualified households, and the city says it has about $100,000 left to allocate. (About $150,000 has already been allocated.)

"These loans can be the difference between renting and ownership for families across Oahu," Mayor Kirk Caldwell said.

"With today's mortgage rates at historic lows, a zero-interest down payment loan through the city can be help families make their dream of homeownership a reality."

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

There is no cost to apply for the loans, which are funded with federal dollars. Interested families are required to apply for a loan through a mortgage lender after being approved for a first mortgage.

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

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