(Eagle News) – Qualified low-income and moderate-income households may now apply for interest-free down payment loans to assist with purchase of their new homes, according to the Department of Community Services (DCS) of the City and County of Honolulu.

$800,000 in HOME funds are available for the loan program for the remainder of this fiscal year. Applications are presently being accepted from applicants’ mortgage lenders for loans up to $40,000.

Eligible households are those earning 80% of the area median income or below, which is approximately $77,350 for a family of two or $96,650 for a family of four. Loans will be awarded on a first-come, first-served basis to qualified Oahu residents.

“We are very pleased we can provide interest-free down payment loans to qualifying low and moderate income households to assist with purchasing their new home,” said Mayor Rick Blangiardi. “Every dollar counts, and this federal funding is a great opportunity to achieve the dream of home ownership.”

The Down Payment Loan Program is part of the city’s efforts to promote homeownership and create a stronger community. Utilizing HOME Investment Partnership Act funds from the U.S. Department of Housing and Urban Development, this program provides zero interest loans to qualified low and moderate income families to meet down payment requirements.

Interested Oahu families are required to apply for a city loan through a mortgage lender after being approved for a first mortgage. There are no application costs. To qualify, applicants must provide five-percent of the purchase price as a down payment and complete an approved homeownership course. A home inspection will also be required.

More information is available at the website www.honolulu.gov/dcs.

(Eagle News Service)