Hawaii has one of the lowest rates of home ownership in the nation. The high cost of Hawaii real estate combined with comparatively low wages make home ownership difficult, especially for low- or moderate-income buyers. However, there are several programs designed to provide both financial and educational services.  

 

The American Dream Downpayment Initiative

 

The ADDI program provides up to $5000 in grant funds to first time homebuyers who earn less than 80% of the median household income for Oahu. First time homebuyers are defined as persons who have not owned a residential property within three years of applying for the grant. It also includes displaced homemakers or single parents. Grant funds are "forgiven" at the rate of 20% per year, If the property is sold within the first five years, the homebuyer will be required to repay the unforgiven balance 

 

Down Payment Loan Program  

 

The County and City of Honolulu offers low interest loans of up to $25,000 to assist with down payment and closing costs. Income eligibility is determined by family size. For example, a single person earning less than $39,950 per year would qualify. The loan will be secured by a mortgage on the home, and must be repaid over a period of fifteen years at zero interest. The homeowner is required to live in the property for at least five years.

 

Homebuyers can qualify for both the ADDI and the Down Payment Loan Program. Both programs require that the homebuyer attend educational training for first time homebuyers. The Downtown Honolulu loan branch is located at 51 Merchant Street, Honolulu. The phone number is (808) 527-5907.  

 

The Hawaii Home Ownership Center  

 

The Hawaii Home Ownership Center provides educational services for first time homebuyers. They offer a free one-hour class on becoming a homeowner, as well as free counseling and referrals to Realtors, lenders, and insurers. They also offer an 8-hour homebuyer class at a cost of $100. $50 of that fee will be refunded upon the successful purchase of a home. 

 

The free initial classes are held weekly at various locations. To register for a class, or obtain more information, call (808) 523-9500. 

 

American Dream of home ownership by providing both educational and financial assistance. The free one-hour class is an excellent source of preliminary information on the best route to becoming a successful home owner in Hawaii.