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Deferred Closing Costs Assistance Loan

Statewide, Hawaii

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Assistance

$10,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Deferred

No payments until the home is sold or refinanced

What is Deferred Closing Costs Assistance Loan?

Deferred Closing Costs Assistance Loan is a deferred second loan for homebuyers in Statewide, Hawaii.

  • The Deferred Closing Costs Assistance Loan from HHOC Mortgage is a deferred 0% interest loan of up to $10,000 ($5,000 in Honolulu County) requiring $5,000 matched savings from the borrower. Funds may be used toward closing costs, including rate buy-down. No monthly payments; loan is deferred for 15 years or earlier upon sale, title change, cash-out refi/HELOC, or non-occupancy. Designed for low-income (up to 80% AMI) first-time homebuyers in Hawaii.
  • Deferred closing-cost assistance loan with 0% interest and NO monthly payments. Funds may be used toward closing costs, including rate buy-down. Loan up to $10,000 (Honolulu County: up to $5,000) with required matched savings of $5,000 from the borrower. Deferred for 15 years or earlier upon sale, transfer of title, cash-out refinance, HELOC, or borrower no longer occupying property. Combinable with DPAL and Mortgage Booster.
  • Funding comes from Nonprofit, Foundation, and Private.

How much assistance does it provide?

Deferred Closing Costs Assistance Loan offers up to $10,000 in assistance.

  • Buyer contribution: Borrower must contribute $5,000 matched savings (4:1 match: $2,500 borrower contribution unlocks up to $10,000).
  • The program can be combined with other assistance, subject to the rules of each.
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Deferred Closing Costs Assistance Loan is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

  • Repayment is triggered by Sale, transfer of title, cash-out refinance, HELOC, borrower ceases to occupy as primary residence, or end of 15-year deferral period.
  • The assistance is recorded in 2nd Lien position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Deferred Closing Costs Assistance Loan is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • On credit: Per first-mortgage product overlays (HHOC Mortgage typically requires mid-FICO of at least 640-700 depending on product)
  • A completed homebuyer education course, through Hawaii HomeOwnership Center (HHOC) - approximately 9 hours of homebuyer education (live or online) plus one coaching session required
  • Residency: Property must be located in the State of Hawaii and used as borrower's primary residence; yearly occupancy affidavit required
  • Citizenship or immigration status: U.S. citizen or U.S. permanent resident (per first-mortgage product overlays)
  • First-time homebuyer (no ownership of primary residence in past 3 years). Must complete HHOC homebuyer education (~9 hours) and a coaching session with the Hawaii HomeOwnership Center. HHOC Mortgage must originate the first mortgage. Borrower must contribute $5,000 in matched savings. Property must be primary residence; yearly occupancy affidavit required. Honolulu County borrowers eligible for up to $5,000 only; all other counties up to $10,000.

The program excludes

  • Manufactured homes
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Deferred Closing Costs Assistance Loan limits household income to 80% of the area median income, which varies by county and household size.

  • Household income up to 80% of HUD Area Median Income (AMI) for the county where the property is located. Honolulu County FY25 100% AMI = $129,300 4-person; 80% AMI ~ $103,400 4-person.
  • The limit applies to total household income, not only the borrower’s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Deferred Closing Costs Assistance Loan caps the purchase price as follows: No published purchase price cap; subject to first-mortgage product limits.

  • Eligible property types include Single-family detached, condominium, townhouse - principal residence only.
  • New construction is eligible.
  • Manufactured homes are not eligible.

Where does it apply?

Deferred Closing Costs Assistance Loan serves buyers purchasing in Statewide, Hawaii.

How do you apply?

Applications for Deferred Closing Costs Assistance Loan go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through Hawaii HomeOwnership Center (HHOC) - approximately 9 hours of homebuyer education (live or online) plus one coaching session required.

  2. Contact the administering agency to reserve funds

    Funds are reserved through Funds reserved by HHOC Mortgage Loan Officer once borrower enters into a purchase contract. Funds may be limited; borrowers should communicate with HHOC Mortgage Loan Officer before submitting an offer., and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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