S.B. 912 - Downpayment Loan Assistance Program

• Establishes authority for the Hawaii Housing Finance and Development Corporation to charge fees, premiums, and charges for the downpayment loan assistance program, with revenues deposited into the housing finance revolving fund.

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

• Allows the corporation to work through nonprofit organizations to originate loans and authorizes origination fees not exceeding prevailing loan origination fee amounts.

• Increases minimum borrower down payment contribution from 3% to 5% of sales price and requires borrowers to complete a HUD-approved homeownership counseling program.

• Changes minimum interest rate on loans from 0% to 1% and requires combined loan-to-value not exceed 100%.