The Downpayment Loan Program (the "Program") is administered by the Hawaii Housing Finance and Development Corporation (HHFDC) and was developed to provide eligible borrowers with downpayment loans. Funds made available under this Program must be applied toward the downpayment for the purchase of a home. The Program loan is to be processed simultaneously with the first mortgage and will be recorded or filed as second mortgage on the property purchased with the loan.

The Corporation works closely with lending institutions that have made a commitment to participate in the Program. The lending institutions accept applications and screens the applicants to determine their eligibility under Program guidelines, as well as their ability to qualify for the loan. Once the applicants are determined to be eligible and qualified, the lender processes the loan application, and delivers the loan to the Corporation.

Basic Terms

1. Loan Amount:

The maximum loan amount available under the Program shall not exceed thirty percent (30%) of the purchase price or fifteen thousand dollars ($15,000), whichever is less.

The actual amount of the loan will be based on the amount of downpayment assistance the borrower's) need in order to qualify for the first mortgage loan.

2. Interest Rate for Mortgage Loan:

The interest rate for loans made under this Program is 3%.

3. Term of Loan and Repayment:

The term of the loan is 15 years.

For the first five (5) years of the loan, interest-only payments will be charged and due on the first of each month. Thereafter, the loan will be amortized over the remaining ten (10) years with regular monthly payments being due on the first of each month.

4. Owner-Occupancy Requirement:

The eligible borrower must physically reside in the residential property to be purchased for the term of the loan. This provision is strictly enforced and violation will cause the entire loan balance to become immediately due.

5. Borrower's Contribution:

A borrower must contribute from his or her own liquid assets, at least three percent (3%) of the sales price towards the downpayment.

6. Eligible Borrower:

a. Is a citizen of the United States or resident alien;

b. Is a bona fide resident of the State of Hawaii;

c. Is at least eighteen years of age;

d. If single or married, does not own (either jointly or severally), in fee simple or leasehold a majority interest in any other residential property within the State of Hawaii at the time of application;

e. Is accepted by a financial institution as a person to whom it is willing to lend money for the purchase of the residential property provided the required downpayment is made;

f. Has not been granted a previous loan under the Program (except in cases of extreme hardship, divorce, etc., as determined by the Corporation;

g. Does not have liquid assets exceeding two (2) months of principal, interest, taxes, and insurance remaining after loan closing;

h. Does not have annualized gross income that exceeds the income limit established by the Corporation as indicated in 7 below.

7. Income Limits:

County	1 Person	2 People	3 People	4 People	5 People	6 People	7 People	8 People
Oahu	$56,910	$65,040	$73,170	$81,300	$87,800	$94,340	$100,810	$107,320
Hawaii	$44,100	$50,400	$56,700	$63,000	$68,040	$73,080	$78,120	$83,160
Kauai	$48,640	$55,580	$62,530	$69,480	$75,040	$80,600	$86,160	$91,710
Maui	$52,370	$59,860	$67,340	$74,820	$80,810	$86,790	$92,780	$98,760

8. Lease Provisions:

For leasehold residences, the lease rental must be fixed for not less than 10 full years from the date of the loan application, and the lease term must be at least coterminous with the term of the second mortgage.

9. Program Application Fee:

There will be a $300 fee charged to process a borrower's Program application.

10. Participating Lenders:

• Bank of Hawaii
• Central Pacific Bank
• First Hawaiian Bank
• General Mortgage Corporation
• Hawaii National Bank
• Honolulu Mortgage Company
• Island Community Lending

For more information call (808) 587-0567.

05/05