HI SB3089

Reduces the minimum borrower downpayment contribution from 5% to 3% of the sales price for Hawaii's Downpayment Loan Assistance Program.

Allows the 3% minimum downpayment to include any downpayment loan assistance provided by the Hawaii Housing Finance and Development Corporation (HHFDC).

Changes the combined loan-to-value limit from 100% to the maximum ratio permitted by federal guidelines.

Authorizes HHFDC to forgive all or a portion of accrued interest on downpayment loans, subject to corporation-established terms and conditions.

Expands loan origination authority to include financial institutions, mortgage lenders, and other qualified loan originators in addition to nonprofit organizations.