Financing Options Can be Your Vehicle to Affordable Homeownership

Most buyers only consider the purchase price when seeking a home that would be affordable to them. This is definitely a factor in affordability — financing options also play a critical role in affordability as well.

Whether it’s a first-time homebuyer loan program with a below-market interest rate, a deferred closing cost loan or grant that can assist with “buying down” the interest rate of the fi rst mortgage, or mortgage credit certificate program, affordable financing products can be a vehicle to a monthly mortgage payment that is comfortable and sustainable.

Wondering how to find affordable financing products?

The internet can be a great resource to find information, however, ensuring the information found on the internet is valid and provides all the information you need to consider is also important. Some questions you may want answered include: When and how do I apply for the program? Are there any restrictions or requirements after the loan closes (i.e. shared appreciation)? How long will it take to process my loan application? Will the program be able to accommodate a 45-day closing timeframe (or whatever timeframe you need to close your purchase transaction)?

Visit a few loan officers to see what they have available for you. Consider asking for a loan fees worksheet for reference and comparison after your visits.

Enroll in a homeownership preparation program with a HUD-Approved Counseling Agency like Hawaii HomeOwnership Center (HHOC). Homebuyer education classes will provide information about

preparing for the purchase process as well as what happens when you are in escrow to buy a property. Homeownership coaching provides a confidential review of your personal situation and

assists with applying the class concepts. First-time homebuyer programs and affordable financing opportunities that you may be eligible for will also be addressed during these sessions. Your

homeownership coach can also review the loan scenarios you received from loan officers with you so you can make an informed decision when it is time to apply for your loan. Workshops and

coaching are also available after you become a homeowner — you have HHOC as a resource forever with their lifetime membership.

Consider purchase price and financing products when embarking on your journey to homeownership. Both are vehicles to getting you into an affordable home of your own.

If HHOC can be a resource to you as well, contact them at www.hihomeownership.org.

For more information, visit hihomeownership.org.