Governor Signs Bill to Make Homeownership More Accessible

In an effort to make home ownership more accessible in Hawaii, Gov. Neil Abercrombie recently signed legislation that broadens eligibility for a mortgage loan program.

As part of Homeownership Month in Hawaii, Abercrombie signed Senate Bill 1025 on Friday, updating the Hula Mae Single Family Loan Program.

“This bill will make owning a home more than just a dream for many island families,” Abercrombie said.

“Homeownership strengthens families and builds communities. It also fosters economic prosperity and generates economic growth, which benefits us all.”

Effective July 1, Act 135 updates the Hula Mae Single Family Mortgage Loan Program to allow broader program participation by potential single-family homeowners, especially for eligible borrowers’ principal residences.

It also adds down payment, closing cost and other assistance as a program feature.

In 1979, the state Legislature authorized the Hawaii Housing Authority to fund the mortgage loan program to assist low- and moderate-income homebuyers.

Since then, the program, which is now administered by the Hawaii Housing Finance and Development Corporation, has helped more than 10,000 families purchase first homes.

Homebuyers apply directly with participating lending institutions, which review eligibility and qualifications for a Hula Mae loan.

Loans currently made under the program are backed by the Federal National Mortgage Association, the Government National Mortgage Association or the Federal Home Loan Mortgage Corporation.

For more information on the Hula Mae Single-Family Mortgage Loan Program click here.