New Non-Profit Mortgage Lender Offers Down Payment Assistance
<I>Executive Director HHOC Mortgage NMLS MLO# 275759 Company# 276143</I>
For first-time home buyers with low to moderate income the biggest obstacle to achieving home ownership is typically the down payment.
Now a new non-profit lender, HHOC Mortgage, is offering a program that eases this up-front financial requirement for the borrower.
An affiliate of the Hawaii HomeOwnership Center and also a 501(c)3 non profit organization, HHOC Mortgage was formed in response to the subprime crisis and the tighter lending policies that ensued, according to Dennis Oshiro, Executive Director of both organizations.
“If the borrower can come up with three to five percent of the purchase price of a home, we can assist with additional funding by way of a second mortgage to bring the down payment to the amount required by the primary lender, which is usually twenty percent.” Oshiro said.
“Any mortgage issued at less than twenty percent down will typically require mortgage insurance to protect the lender. This adds to the cost of the loan and adds another layer of credit scrutiny because the mortgage insurance company also gets involved.
“Under a recently approved Down Payment Assistance Loan Program called DPAL 3, HHOC Mortgage can lend up to $50,000 or 17 percent of the purchase price of a home for buyers coming in with as little as 3 percent down payment. The primary lender will then be financing only 80 percent of the purchase price of the home after the down payment is funded, and the extra burden of mortgage insurance is thus eliminated. There are income restrictions to our programs so please call us for details.”
Oshiro explained that the second mortgage offered by HHOCM has a 30-year term with a fixed interest rate matching the first mort gage’s rate, while normally second mortgage interest rates are higher than the first mortgage. Although the focus of the new lending operation is down payment assistance for borrowers who have already been processed by a primary lender, HHOC Mortgage can also broker first mortgages for clients. Once the loan application and preliminary approval are completed for the first mortgage, the client can proceed to obtain the second mortgage with the same documentation, thereby saving time and cost.
“Since its inception in 2010, HHOC Mortgage has completed about 30 loans utilizing the Down Payment Assistance program,” Oshiro said. “Our Hawaii HomeOwnership Center, which provides home buyer education, has helped 869 Hawaii families become successful homeowners since its founding in 2003.
“I invite any hopeful home buyer to contact our Loan Officer, Vaun Owen, at 523-9505 and arrange to meet with him for a ‘no obligation’ consultation at our Downtown Honolulu office in the Hawaii USA Building (1259 Aala Street, Suite 201). Our mission here at HHOC Mortgage, as with the Hawaii HomeOwnership Center, is to make your dream of owning a home a reality. And keep in mind that the historically low interest rates won’t last forever…so now is the best time to start the process.”