Bill > SB3089

This bill modifies the Downpayment Loan Assistance Program, administered by the Hawaii Housing Finance and Development Corporation, to better assist low- and moderate-income first-time homebuyers by aligning with federal guidelines and expanding eligibility and program flexibility. Specifically, it changes the maximum loan-to-value ratio for downpayment loans to be in line with federal standards, allows the corporation to forgive some accrued interest on these loans, and broadens the types of entities that can originate these loans to include financial institutions and mortgage lenders, not just nonprofit organizations. Additionally, the bill reduces the required personal downpayment from five percent to three percent of the sales price, clarifying that this contribution can include downpayment loan assistance from the corporation itself, and mandates that applicants complete a homeownership counseling program approved by the U.S. Department of Housing and Urban Development (HUD).

Budget and Finance, Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=3089&year=2026