State renews program
for low-rate mortgages
The Hula Mae plan offers 6.85%Star-Bulletin staff
interest for residents who meet
certain income limits
The state Housing and Community Development Corp. of Hawaii is offering its Hula Mae 30-year mortgage program again, this year with a below-market 6.85 percent interest rate.
The offer, announced yesterday, will help about 1,000 low- and moderate-income Hawaii families buy their first home.
The 6.85 percent interest rate is up nearly 1 percentage point from the last time it offered the program, June 1998, but still 1.37 percentage points lower than the current national average rate of 8.22 percent.
U.S. mortgage rates have been rising steadily over the past year as the Federal Reserve raised key lending rates six times since last June.
For the Hula Mae program, the annual income limits for Honolulu residents are $85,260 for families of three or more, and $73,080 for families of fewer than three. On the neighbor islands, income limits are $80,780 for families of three or more, and $69,240 for those with fewer than three.
Oahu sales prices are limited to $241,480 for newly built residences and $266,740 for existing homes. Price limits vary on the neighbor islands.
The loans are available from nine participating lenders: American Savings Bank, Bank of America, Bank of Hawaii, Central Pacific Bank, Countrywide Home Loans Inc., First Hawaiian Bank, HomeStreet Bank, House of Finance Inc. and Irwin Mortgage Corp.