COUNTY
OF KAUAI
HOUSING AGENCY
4193
Phone : (808) 241-6444
HOME BUYER LOAN PROGRAM
The County’s Home-Buyer Loan Program makes low cost loans to
low-income, first-time Home-Buyers on
Candidates
for Home-Buyer Loans take a series of home ownership classes offered by the
Housing Agency. Upon completion of the
class, applicants can purchase a home not to exceed HUD’s sale price limit,
currently $187,300. The typical
homebuyer is expected to obtain as much financing as possible from a
conventional lender, then the County provides the additional mortgage money to
complete the purchase at a reduced interest rate and with a seven year deferred
repayment period.
See
Types
of Home-Buyer
Loans
for a description of the three different loans available from the County for
first time buyers. The two loans to
purchase an existing home require a minimum down payment of 1.5% and the
construction loan requires ownership of the site and at least a 25% equity
position. All loans are at 3.0%
interest.
Other important
requirements under the Home-Buyer Loan Program are:
* only single
family homes are eligible,
* the house must
be vacant or owner occupied when a sales contract is accepted,
* houses in a
100-year flood area are ineligible,
* the County’s 10-year Buyback Restriction on
* the borrower
must reside in the property as their permanent, primary residence for the term
of the loan, and
* additional mortgage loans will only be allowed for home
improvements or to pay catastrophic medical expenses.