County of Kauai, State of Hawaii
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  Home-Buyer Loan Program Minimize
The Home Buyer Loan Program provides low-cost loans to first-time homebuyers on the island of Kaua‘i who meet the Kaua‘i Median Household Income (KMHI) as published by HUD.
Eligibility:
·         You are a Citizen of the United States or Resident Alien
·         You are 18 years or older
·         You are a first-time homebuyer (you, your spouse or your partner cannot own majority interest in a principal residence or real estate for a period of 3 years prior to the closing of a homebuyer loan)
·         You must occupy the property purchasing as your primary residence
·         Must complete Homebuyer Education Counseling Classes
·         Preference is given to residents of the island of Kaua‘i
Candidates for the Home-Buyer Loans must complete home ownership classes offered by a HUD Approved Housing Counseling Agency. Upon completion of the class, applicants are required to submit a copy of their Certificate of Completion and register with the Kaua‘i County Housing Agency to be added to the Affordable Housing Waitlist.
See types of Home-Buyer Loans for a description of the Loan Programs available from the County.
Other important requirements under the Home-Buyer Loan Program:

·         the house must be vacant or owner occupied when a sales contract is accepted

·         homes in a 100-year flood area are ineligible

·         Fee simple properties will be subject to the County’s Restriction on Sale, Transfer, Debt and Use

·         Kaua‘i County Leasehold sales will be subject to the 90-year Ground Lease terms

·         the borrower must reside in the property as their primary residence for the term of the loan, or restriction

·         additional mortgage loans will only be allowed for home improvements or to pay catastrophic medical expenses.

 

Home-Buyer Loan Program Flyer
     
  Types of Home-Buyer Loans Minimize
LOAN DESCRIPTION
PRIMARY MORTGAGE LOANS are available for a minimum of $25,000 to a maximum of $450,000. The maximum Primary Mortgage loan shall be the lesser of 100 percent of the estimated market value or the sales price of an eligible property, and require a first mortgage in favor of the County. Primary Mortgage loans are amortized for 30 years and made for a period of 15 years.
GAP MORTGAGE LOANS  are available form a minimum of $25,000 to a maximum of $150,000. The maximum Gap Mortgage loan mount shall not exceed 30% to finance the difference between the sum of what a buyer can borrow from a private lender, plus their own cash, and the sales price of the eligible property. Gap Mortgage loans shall require interest-only payments during the first 7 year period and a second mortgage in favor of the County.
Interest rates for both loan programs will be calculated according to the borrowers Kauai Median Household Income (KMHI) and will not exceed 3%.
 CONSTRUCTION MORTGAGE LOANS – Currently unavailable at this time.