The state Office of Hawaiian Affairs’ new mortgage- backed program to assist Native Hawaiians achieve home ownership has generated a high amount of interest in its first weeks after launching.
The Access to Home Ownership program, or AHO, launched Feb. 20 and is currently in its initial phase, according to OHA spokesperson Bill Brennan. The pilot program will use $1.5 million to cover a portion of home loans to eligible borrowers with financing by American Savings Bank.
The loan guarantee would eliminate monthly mortgage insurance premiums typically required for mortgages with low downpayments, according to an OHA news release. Other benefits include a low downpayment option and a below-market interest rate.
In order to be eligible for the AHO program, applicants must be a Hawaii resident and verified through OHA’s Hawaiian Registry Program. The program also is limited to first-time home buyers who will be using the home as their primary residence.
Applications will be received on a rolling basis and will be open as long as AHO program funds are available, according to the release.
As of Tuesday, there were 138 applicants for the program, including 91 on Oahu, 19 on Maui, seven on Kauai, 19 on Hawaii island and two on Molokai, according to Brennan.
In the first week of launching, the AHO program received approximately 240 inquiries and has been averaging about 20 inquiries per day since then, Brennan said. In addition, the AHO page on the OHA website received about 865 visits in its second week.
Brennan stressed that since the program is new, patience is required in seeing just how effective it will be in making home ownership more feasible for potential home buyers.
The initiative is another route OHA has sought to provide more affordable housing options to Native Hawaiians. A housing- related bill drafted by the agency failed to advance this week in the state Senate. The proposal would have required that more than 50% of homes developed on OHA land in Kakaako be reserved for Hawaii resident households that don’t earn more than 140% of Oahu’s median income.
OHA Chief Executive Officer Stacy Ferreira remains hopeful the agency will be able to assist more Native Hawaiian residents in Hawaii.
“OHA is taking a bold step to ensure that kanaka can secure a home here in our islands,” Ferreira said in the news release.
