“These loans can be the difference between renting and ownership for families across O‘ahu.” 
-Honolulu Mayor Kirk Caldwell
Last week Honolulu Mayor Kirk Caldwell announced that qualified low-income and moderate-income families can receive interest free loans for a down payment on home purchases. That day I called the DCS loan branch for more info and here’s what I found out.
The city will loan up to $40,000 to a borrower interest-free over a 20 year period.
But that’s not all! 
For every year of owner-occupancy, the borrower will be credited 5% toward their loan balance. After ten years, about 50% of the balance should be paid off by the buyer while the other 50% will be paid off by credits. So only does the buyer get an interest-free loan, but they get half the loan amount credited to them for living in their home for ten years.
There are some restrictions. To qualify, the borrower cannot earn more than a certain amount, depending how many are in his/her household. As far as the price of the property is concerned, it cannot exceed $489,000. Also, the loan is not meant to cover the full down payment amount (Borrower must furnish 10% of down payment amount funds, city will cover up to 90% of down payment)
Do you qualify? For more information, visit the following site: http://www.honolulu.gov/cms-dcs-menu/site-dcs-sitearticles/1853-cad-loans-downpayment.html
Or call the DCS Loan Branch at 808-768-7076.