Hula Mae Program
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Hula Mae Program
 

Hawaiian GreetingsHula Mae is an innovative mortgage loan created by the Hawaii State Legislature in 1979 for families of low and moderate income. Through the sale of tax-exempt revenue bonds, the Hula Mae Program provides eligible home buyers with mortgage loans at interest rates below those available on conventional loans. The Housing and Community Development Corporation of Hawaii (HCDCH) has the responsibility for the program.

Under the current 2005 Program, the interest rate for a mortgage loan is 4.5% simple interest. The maximum term of the loan is 30 years. A one time charge of two (2.00%) points is charged on a Hula Mae Loan with the seller paying one point and the buyer one point. Property eligible for this loan includes existing single family homes and townhouse/condominium units. These homes must be located in the state of Hawaii.

One of the main restrictions is that the buyer must be an owner-occupant throughout the term of the Hula Mae Program. This provision is strictly enforced and violation will cause the entire loan balance to become immediately due. Hula Mae loans must be secured by the property to be purchased.

Hula Mae Loans may not be used for:

  •   Refinancing an existing mortgage
  •   Converting agreements of sale
  •   Purchasing fee simple title to leasehold properties

Under provisions of the federal laws, purchase ceilings have been established as follows:

County

Newly Constructed Residences or existing Residences
Honolulu $644,429
Hawaii $505,125
Maui $644,429
Kauai $644,429

 

Eligibility for a Hula Mae Loan includes the following person who:

  •   Is a resident of Hawaii

  •   Is a citizen of the United States or declarant alien

  •   Is 18 years or older

  •   Has not been granted a loan previously under the Hula Mae Program

  •   Has not (or whose spouse has not) owned or have any interest in a principal residence or a beneficial interest in a Land Trust involving a principal residence, within or without the State of Hawaii for a period of three years prior to applying for a Hula Mae Loan. This requirement does not apply to loans made in targeted areas.

  •   Does not have income that exceeds the following limits:

County Families of less than 3 Families of 3 or more
Honolulu $85,560 $99,820
Maui $83,040 $96,880
Kauai $77,520 $90,440
Hawaii $71,880 $83,860

Note: Above limits are effective as of September, 2006

 

  
 

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This Page Last Modified on February 26, 2007 23:08