Home Loans for Low Income Home Buyers on State

HRS div. 1, tit. 13, ch. 207, pt. I

in effect

HRS §207-1 Authorization for loans

207-1. Authorization for loans The director of finance may grant loans as provided for in this part to persons leasing or purchasing state lands for their personal residential needs. Loans may be granted only to eligible persons as provided for in this part who occupy state land by virtue of leases or agreements of sale executed after July 13, 1961. [L 1961, c 194, §2; am L 1963, c 114, §1; Supp, §98L-2; HRS §207-1]

HRS §207-2 Qualifications for loans

207-2. Qualifications for loans To qualify for a loan under this part an applicant must: (1) Be of legal age and have at least one person who will occupy the premises with the applicant and who is related to the applicant by blood or marriage and solely dependent upon the applicant for support. A husband and wife, who are both employed, shall jointly qualify for a loan; (2) Be a resident of the State for not less than one year immediately preceding the application for the loan; (3) Have a gross annual income not in excess of $7,000 including the gross income of the applicant's spouse; and (4) Have such other qualifications as may be established by the director of finance. [L 1961, c 194, §3; am L 1963, c 114, §1; Supp, §98L-3; HRS §207-2; gen ch 1985]

HRS §207-3 Purpose for and terms of loans

207-3. Purpose for and terms of loans [(a)] Loans of state funds made pursuant to this part may be granted only for construction of residences upon the premises. Loans shall be secured by a mortgage which may be subordinate only to another mortgage given to a lending institution as security for a loan for the purpose provided above. Loans shall be made to relieve the burden of the required down payment or to extend the period over which monthly payments would be required upon a finding that the applicant's income would not otherwise reasonably support such payments. [(b)] Loans shall not exceed twenty-five per cent of the cost of the improvements, and in no case shall any loan exceed $5,000. The director of finance shall by appropriate regulation establish the interest rate on the state loan and may authorize repayment upon such terms as the director of finance deems appropriate but in no case shall the payments extend beyond forty years. [L 1961, c 194, §4; am L 1963, c 114, §1; Supp, §98L-4; HRS §207-3; gen ch 1985]

HRS §207-4 Contract with lending institution

207-4. Contract with lending institution The director of finance may, and as far as practicable shall, contract with lending institutions for the processing of applications for loans of state funds and the servicing of these loans. The servicing shall be performed only by the lending institution which makes the loan for the principal cost of construction. In furtherance of the purposes of this part the contract may provide for the loan of state funds to be repaid after the funds of the lending institution are repaid in full and for payment to lending institutions for servicing the State's portion of the total loan and may include other terms deemed appropriate by the director of finance. [L 1961, c 194, §5; am L 1963, c 114, §1; Supp, §98L-5; HRS §207-4]

HRS §207-5 Rules and regulations

207-5. Rules and regulations The director of finance may adopt, amend, or repeal such rules and regulations governing the granting of loans and other related functions as the director of finance considers necessary or suitable. The rules and regulations when approved by the governor and made in accordance with chapter 91 shall have the force and effect of law. [L 1961, c 194, §6; am L 1965, c 96, §82; Supp, §98L-6; HRS §207-5; gen ch 1985]

HRS §207-6 Bond authorization

207-6. Bond authorization The director of finance may with the approval of the governor, issue from time to time general obligation bonds pursuant to chapter 39, part I not exceeding $500,000 for the granting of loans pursuant to the purposes of this part. [L 1961, c 194, §7; am L 1963, c 114, §1; Supp, §98L-7; HRS §207-6]

Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol04_Ch0201-0257/HRS0207/HRS_0207-.htmFetched: 11/10/2026