FTHB Downpayment Loan Program
First-Time Homebuyer Programs
Lokahi Pacific is dedicated to addressing the needs of affordable housing throughout the County of Maui. As such, interested Maui County residents are invited to submit an application for its First Time Homebuyer Programs. Lokahi Pacific is offering the following programs:
1. AFFORDABLE HOUSING PROGRAM: To address the need of affordable housing in the County of Maui, Lokahi Pacific may offer homebuyer opportunities to applicants who meet the established eligibility criteria in purchasing a Lokahi home. For more information or for project specific details, please contact the Residential Loan Department at 442-3028.
- Applicant(s) shall produce a pre-qualification letter (amount determined by project cost) by contacting project approved lenders.
- Applicant(s) shall obtain a first mortgage subject to the terms stipulated by the first mortgage lender to purchase a Lokahi home.
- Applicant(s) shall either be a First Time Homebuyer or shall not own more than 51% interest of real property.
- Owner-Occupancy Requirement: The Owner(s) must physically reside in the residential property to be purchased. The affordability period shall be perpetual. Lokahi will strictly enforce this and any violation will be cause for termination and eviction.
- Homebuyers assisted under this program must secure Lokahi Pacific's written approval prior to seeking refinancing.
- Lokahi retains the right to inspect the property at least yearly to determine that Owner(s) is/are in compliance with the terms and conditions of project, its specific covenants and restrictions, and whether any housing code violations exist to assure that all units are maintained in a safe, decent and sanitary condition per Maui County property standards.
- Lokahi encourages all First Time Homebuyers to make improvements to the property, which will increase the value of the property. All such improvements must be approved in writing prior to commencement of work.
2. DOWNPAYMENT LOAN PROGRAM: Funds made available under this Program will be applied specifically toward the down payment and/or closing costs needs for the purchase of a home. The Program loan is to be processed simultaneously with a First Mortgage and Down payment Funds will be recorded or filed as a second mortgage on the property purchased with the loan.
- Loan Amount: The maximum loan amount available under the Program shall not exceed fifteen thousand dollars ($15,000). The actual amount of the downpayment assistance loan shall be the sum of the borrower's closing cost plus the difference between the maximum first mortgage loan amount that the borrower(s) can qualify for and the purchase price of the unit. The proceeds of the downpayment assistance loan will be disbursed directly to the escrow company.
- Term of Loan: Fifteen (15) years from the date of purchase of the mortgaged property.
- Repayment: Lokahi Pacific's First Time Homebuyers Down Payment Loan shall bear no interest and repayment is not required as long as the mortgaged property remains the principal residence of Borrower for the term of loan. If at any time during the period of fifteen (15) years from the date of purchase of the mortgaged property, if the property is sold, transferred or the Borrower's interest in the mortgaged property is assigned to another person or entity, Borrower must repay the full loan amount with three percent (3%) interest per annum and such funds will be returned to the First Time Homebuyers Program for reinvestment.
- Restrictions: Owner-Occupancy Requirement: The Owner(s) must physically reside in the residential property to be purchased for a period of 15 years. Lokahi will strictly enforce this and any violation will be cause for termination and/or eviction.
- No funds shall be used to pay for the refinancing of existing property debt. All first time homebuyers assisted under this program must secure Lokahi Pacific's written approval prior to seeking refinancing.
- Lokahi retains the right to inspect the property on a yearly basis during the affordability period to determine that Owner(s) are in compliance with the terms and conditions of the Downpayment Loan Program and whether any housing code violations exist to assure that all units are maintained in a safe, decent and sanitary condition per Maui County property standards.
- Lokahi encourages all first time homebuyers to make improvements to the property, which will increase the value of the property. All such improvements must be approved in writing prior to commencement of work.
- We will not finance properties built prior to 1978 and properties that are occupied by tenants.
- Purchase price of properties cannot exceed the existing USDA purchase price limit.
Selection of all applicants shall be made subject to the applicant meeting all of Lokahi Pacific's eligibility criteria as set forth below.
To be eligible, applicants must meet all of the following eligibility criteria:
- Be a citizen of the United States or a permanent resident alien who is a permanent resident of the County of Maui.
- Be 18 years of age or older.
- It is Lokahi Pacific's primary objective to provide home ownership opportunities to low income families who are unable to qualify for the purchase of a market-priced home since recent studies indicate that households earning 80% or less of the annual median income for Maui County experience the most difficulties in accessing homeownership. The following income limits denote the 80% of annual median income for households of two persons or more:
Family Size Maximum Gross
Income Limits*Family Size Maximum Gross
Income Limits*1 person $42,950 5 persons $66,250 2 persons $49,100 6 persons $71,150 3 persons $55,200 7 persons $76,050 4 persons $61,350 8 persons or more $81,000
*Subject to adjustment semi-annually on first day of January and July of each calendar year. - There is no restriction on the maximum amount of liquid assets that an applicant may have. However, borrower shall expend their own funds from liquid assets, including savings, investments, and other resources that the borrower owns in conjunction with the purchase of the dwelling unit, provided however that not more than fifteen thousand dollars ($15,000) may be retained by the borrower. The value of retirement accounts or pension funds shall not be considered liquid assets.
- Does not now or for a period of three years prior to the submittal of application, have a majority interest (51% or more) in real property in fee simple or leasehold in the United States where such property is deemed suitable for dwelling purposes by Lokahi Pacific.
- Is accepted by a financial institution as a person to whom it is willing to lend money for the purchase of a residential property provided the required down payment is made. Application must be accompanied by a pre-approved letter from an approved Lender.
- Has not been granted a previous loan under the Program.
- Is able to secure financing for the purchase of a home within established time limits.
- Mandatory attendance at Homebuyer Education Classes.
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