HB530 Summary

• Modernizes Hawaii's downpayment loan assistance program administered by the Hawaii Housing Finance and Development Corporation to increase access to homeownership for low- and moderate-income first-time homebuyers.

• Increases maximum downpayment loan amount from $15,000 to $60,000 and reduces the maximum loan percentage from 30% to 15% of purchase price or appraised value.

• Allows the corporation to deliver loans directly or through nonprofit organizations and establishes authority to charge fees, premiums, and charges to support the program.

• Requires borrowers to have a minimum 5% down payment (increased from 3%) and mandates completion of an HUD-approved homeownership counseling program as a qualification requirement.

• Changes interest rate range from 0-8% to 1-8% and adds requirement that combined loan-to-value cannot exceed 100% of property value; effective July 1, 2017.