With skyrocketing home prices, limited inventory and the high cost of living in the islands, the need for affordable housing solutions has never been greater. American Savings Bank’s “This is HOME” program offers first-of-its-kind affordable financing designed to help hardworking kamaaina buy a home in Hawaii, so they can stay in Hawaii.
With a low down payment of 3%, discounted interest rate that will save borrowers hundreds of dollars on their monthly mortgage, lower mortgage insurance requirements and reduced closing costs, “This is HOME” offers benefits that are perfect for residents who can’t save enough for a traditional 20% down payment.
Program Benefits
Achieve your dream of homeownership in Hawaii with benefits from the program, including:
- Expanded area median income range
- 3% low down payment
- Lower monthly payments
- Expanded financing eligibility
To apply or learn more about ASB’s first time home buyer resources, CLICK HERE.
Your home is one of your most important investments, and it is critical that it meets your lifestyle needs. Perhaps you need additional bedrooms for a growing family, or maybe you want to revamp your outdated kitchen. If this sounds like you, consider financing your home renovations with a Home Equity Line of Credit (HELOC).1
Flexibility of Funds
A HELOC is a revolving line of credit, which gives homeowners the ability to borrow from their home’s equity a certain amount of money and access the funds as needed – a convenient feature when you need to finance renovations. Your HELOC gives you a set amount to borrow and pay back, with the flexibility to withdraw only what you need during your draw period. A HELOC can also serve as an emergency fund to cover, for instance, home repairs after a natural disaster.
Affordability
Since HELOCs are secured by real estate, HELOCs’ interest rates are often lower than the rate offered on a credit card or a personal loan. Moreover, the interest you pay on a HELOC used to finance home improvements may be tax-deductible. Keep in mind that the home improvements must be “substantial,” which should add value to your home and prolong its useful life. Improvements such as energy saving renovations or electrical wiring upgrades can qualify as tax-deductible expenses. Consult your tax professional regarding the deductibility of qualifying interest and charges.
First Hawaiian Bank Offers Solutions
If you are ready to start on your home improvement project, First Hawaiian Bank can help you meet your goals with a HELOC. To learn more, speak to a personal banker at any First Hawaiian Bank branch.
Buying your first home can be overwhelming. But if you break it down into simple steps, you can feel much more confident as you navigate the process. Below are the 10 steps you’ll take in your homebuying journey:
1. Save Up for Your Down Payment and Closing Costs
Start saving up for your down payment and closing costs. Most traditional home loans require 20% of the home’s purchase price up front, although there are special homebuying programs that require smaller down payments. Just bear in mind that the more money you put toward your down payment, the lower your monthly mortgage payments will be. You should also save extra money for closing costs, which generally are an additional 2 to 5% of your home’s purchase price in addition to your down payment.
2. Clean Up Your Credit
Check your credit report and credit score before you start the homebuying process. By law, you can get a free copy of your credit report every 12 months at annualcreditreport.com. Be sure to review your credit report for any errors and dispute them early on in your home buying process. It can take time for credit bureaus to change incorrect information, so cleaning up your credit may take a while.
3. Determine How Much Home You Can Afford
Before you start house-hunting, determine your budget to get an idea of what you can afford. This will give you and your real estate agent a good idea of your price range. Remember, you may get approved for more than you can realistically afford, since most calculators don’t ask about or factor in your living expenses. Our FHB Mortgage Loan Officers are here to assist and work with you on a budget and mortgage payment that you can realistically afford.
4. Learn More about Available Mortgage Options
Before you begin house-hunting, you should learn about available mortgage options. First Hawaiian Bank offers a variety of mortgage options, from fixed-rate mortgages and adjustable-rate mortgages to Jumbo Loans, First Time Homebuyer Loans, VA Loans, and more. Loan payment terms also vary and typically range from 15 to 30 years for most loan types. Talk to your personal banker or a First Hawaiian Bank Mortgage Loan Officer to learn more about your options.
5. Shop for a Home Within Your Budget
Now comes the fun part: shopping for your dream home. Before you begin, determine which features and amenities are nonnegotiable for you. It’s also important to consider the neighborhood and quality of the home’s school district. Ask your friends, family, or personal banker to refer you to a good real estate agent who can help you navigate the process.
6. Make an Offer on the House You Want
When you find the home that you’d like to buy, it’s time to make an offer and negotiate. Your real estate agent should be able to guide you through this process and handle everything on your behalf. Make sure you know the selling prices of other comparable homes as well so you can negotiate accordingly.
7. Put a Deposit Down
Once you and the seller have both agreed to the home’s purchase price, you’ll need to put down a deposit to show you are serious and to secure the home. This money will go into an escrow account.
8. Submit Your Mortgage Application
To finance your home, you’ll need to submit your mortgage application. First Hawaiian Bank’s streamlined Digital Home Loans online application makes the process quick and easy. Experienced Mortgage Loan Officers are always standing by if you have questions or need help through this process.
9. Close the Sale
You’ll need to have the home inspected before you can close on the purchase. Home inspections are a great way to figure out if the house has any major defects before you are locked into the sale. This can also help you during the negotiation process, as many buyers ask sellers to fix things or lower the sale price based on the inspection results. Once all terms are met, you will need to deposit the funds and the seller will need to deposit the deed. (This process may vary based on where you live.) You may also want to hire an attorney who can walk you through all the paperwork that needs to be signed.
10. Move into Your New Home
Once you’ve completed the process, you’ll be handed the keys to your new home. Start packing and calling up your friends to help you move, or get ready to hire a moving company. Don’t forget to set the date for your housewarming party!
Buying a home is a major milestone that can quickly become overwhelming. Having a knowledgeable, supportive team assisting you through the process can make your homebuying journey a little easier. If you’re ready to take the first step toward your new home, visit fhb.com/digitalhome today to find out what First Hawaiian Bank has to offer.
