This is HOMESM: An Affordable Financing Solution for Hawaii's kamaaina
A home loan for first time home buyers that includes a wider Area Median Income (AMI) range for buyers who earn between 80% - 140% to help them achieve their dream of homeownership in Hawaii.
This is HOMESM Features
- Down payment as low as 3%
- Discounted interest rate that'll save you hundreds of dollars each month
- Lower mortgage insurance requirement
- Reduced closing costs with no added fees or pricing adjustments
- Eligible borrowers' annual qualifying income can be up to $194,250 for a family of four
TYPES OF LOANS FOR FIRST TIME HOME BUYERS
Conforming Loan
If you have established credit history and the property meets standard guidelines, you could qualify for a Conforming Loan with competitive market rates. 30-Year and 15-Year fixed rate mortgages available. Learn More >
Non-Conforming Loan
Non-Conforming (or Portfolio) loans offer some flexibility, if the property or your borrowing situation does not meet conforming loan guidelines. Available for loan amounts up to $2 million for purchasing or refinancing a home. Learn More >
Fixed Rate Loan
Fixed Rate mortgages have a set interest rate so that the monthly principal and interest payment stays the same for the life of the loan. We have 15 and 30 year Fixed Rate loans that'll help to give you ease of mind when buying your home in Hawaii.
Adjustable Rate Mortgage (ARM) Loan
An Adjustable Rate Mortgage (ARM) Loan features a fixed interest rate for an introductory period of time (either 7 or 10 years). After the introductory period, the interest rate and payments may adjust higher or lower based on market interest rates.
What Type of Home Loan Programs are There?
Fannie Mae
HomeReady®
Provides Single-Family and Multifamily homeowners with stable, predictable mortgage payments over the life of the loan
Freddie Mac
Home Possible®
Offering more options and flexibility to help low-to moderate-income borrowers purchase their dream home
Mortgage Credit
Certificate (MCC)
Assistance to families of low or moderate income by reducing federal income tax
Combined First &
Second Mortgage
Purchase a home with a minimum 10% down payment and no private mortgage insurance
Compare All Mortgages and Home Loans >
WAYS TO GET STARTED
PROGRAMS AND RESOURCES
Products
Home Purchase
First Time Home Buyer
Refinancing a Mortgage
Jumbo Loans
Land and Home Construction Loans
U.S. Department of Veteran's Affairs (VA) Loan
Compare All Mortgage Loans
Home Equity Line of Credit
Programs
Conforming Loan
Non-Conforming Loan
Combined First and Second Mortgage
State of Hawaii Mortgage Credit Certificate
First Time Home Buyer Programs
Learning and Resources
Buying Your First Home
Detailed Loan Process Guide
Mortgage Glossary
Mortgage Rates
Common Questions:
To be considered a first time home buyer in Hawaii you must (1) be purchasing the security property; (2) reside in the security property as a principal residence; and (3) had no ownership interest (sole or joint) in a residential property during the three-year period preceding the date of the purchase of the security property.
In addition, an individual who is a displaced homemaker or single parent also will be considered a first time home buyer if he or she had no ownership interest in a principal residence (other than a joint ownership interest with a spouse) during the preceding three year time period. (Source: Fannie Mae).
If you meet this definition, we have a variety of first-time home buyer programs that can assist you towards your dream of Hawaii homeownership:
- This is HOME: A mortgage program featuring a discounted interest rate, 3% down payment requirement and more.
- First Time Home Buyer Promotion: Receive one-half (0.50) point off your loan origination points which can translate into thousands of dollars in savings.
If you’re a first time home buyer in Hawaii, you likely have a lot of questions about finding and applying for your first mortgage loan. Let the mortgage loan experts of ASB help guide you through the home buying process. Your first step to securing the house of your dreams as a first time home buyer is to understand how much you can afford. Consider getting pre-approved for a mortgage loan so you know how much you might be able to spend on a home.
Once you’ve decided on a home, you can speak with the local Hawaii mortgage loan experts from ASB. Our team of knowledgeable loan officers can help you better understand our first time home buyer programs. Whether you decide to purchase your home using a Fannie Mae HomeReady® loan or Combined First and Second Mortgage, our mortgage loan team is ready to help you make your first home purchase in Hawaii.
APR stands for “Annual Percentage Rate” and represents the price you pay to borrow money. APR is a broader measure than interest rate because it includes the interest rate plus other costs such as lender fees, closing costs and insurance. You can use APR to compare loans offered by different lenders when shopping for a mortgage loan.
For example, based on a purchase price of $500,000; loan amount of $400,000 (20% down payment; 80% loan-to-value); interest rate of 4.00% and 1.00% points, the monthly principal and interest payment on a 30-year fixed rate mortgage would be $1,909.66 and an APR of 4.119%. Keep in mind your mortgage loan monthly payment will be higher as lenders typically include property tax and insurance costs.
There are a few items you must consider before applying for a mortgage loan. We recommend that you have a good understanding of how much you want to borrow, what your credit score is, and that your financial information is readily available.
Getting pre-qualified is highly recommended since many sellers require a pre-qualification letter from a reputable lender. Plus, during the pre-qualification process your ASB Loan Officer will help you determine the appropriate price range before you go house hunting.
A residential first mortgage loan is secured by residential real estate property. Therefore, sufficient hazard insurance in case of fire, hurricane, flood and other disasters is always required. You must obtain and pay for the premiums if the mortgage loan is for a purchase of a new home; you must obtain sufficient coverage if the mortgage loan is for a refinance of an existing home. After the mortgage loan closes and the mortgage loan account is established, an escrow account is used to collect the premiums monthly as part of your mortgage loan payment. A conventional 1st mortgage loan amount over 80% loan-to-value (LTV) requires private mortgage insurance (PMI), which is paid by the borrower and protects the lender from borrower default on loan payments. PMI cancellation is typically permitted: 1) borrower-requested cancellation, and 2) lender-required cancellation under the Homeowners Protection Act of 1998. For a borrower-requested cancellation, the borrower must provide a written request for cancellation to the lender on the date that the mortgage loan balance is first scheduled to reach 80% of the original value of your home. The law allows lenders to require borrowers to fulfill certain conditions for PMI cancellation.
We typically ask for two years of W-2s and tax returns as well as other documents to verify the information that you provide to us. Every applicant is different, so please contact a loan officer to discuss your situation.
- Loan programs and products are subject to loan qualification, credit policy and underwriting standards for the respective program or product. Certain terms, conditions and restrictions may apply. Programs/products subject to change or discontinuation without notice.
Fannie Mae® is a registered trademark of the Federal National Mortgage Association. Freddie Mac® is a registered trademark of the Federal Home Loan Mortgage Corporation.