4 Little Known Programs to Help You Buy a Home in Kauai

In these tough economic times, many Americans are struggling mightily to save enough money to buy a home. If you’re one of them, you shouldn’t despair and give up on your dream of home ownership or of moving to a new home. There are in fact many programs out there that can help you purchase a home – some of them you may never have heard of. So let’s take a look at 4 little-known programs to help you buy a home in Kauai.

Overview of Programs to Help You Buy a Home 

By some estimates there are, nationwide, more than 2,000 homeownership assistance programs available. These consist of different kinds of assistance for aspiring homeowners. The two largest categories of assistance programs are grants (which don’t have to be repaid) and loans aimed primarily at first-time homeowners, each having its own set of qualifying criteria.

You may think that you can’t qualify for a specific program, but industry experts recommend that you don’t rule anything out until you are certain of all your options. For while you may not be able to take advantage of a local program, it’s still very likely that you will be eligible for one of the federal assistance programs. And there are some very good little-known programs out there – beyond what you’re aware of like FHA, VA, and USDA loans.

1. FHA 203(k) Loan

Not the typical FHA loan, the FHA 203(k) rehabilitation loan is suitable for home buyers who want to purchase a fixer-upper. This loan factors in a home’s after-repair value and then bundles the purchase costs with the costs of repairing and renovating the property. If the renovation costs exceed $35,000, you will be required to hire an approved consultant who will serve as contractor and project manager.

This kind of is a great way to buy a home in Kauai (or anywhere else) for those buyers who are willing and able to take on a fixer-upper and who want to gain instant equity. You can get a great deal on a home that needs repairs, and you can use part of the loan to fund those repairs. 

To qualify, you’ll need a credit score of 640 0t higher and a down payment of 3.5%. In addition, the home must need at least $5,000 worth of renovation.

The FHA 203(k) rehabilitation loan presents a great opportunity for the fixer-upper-inclined buyer. Still, if you have no experience in this area, it’s wise to consult a Kauai agent before taking the plunge. To discover more, just call 808-634-4518.

2. Good Neighbor Next Door HUD Loan

The Good Neighbor Next Door HUD loan offers public service workers the opportunity to buy a home at half the list price. This program was implemented by the Department of Housing and Urban Development (HUD) as a way to revitalize certain areas, make communities safer, and promote home ownership.

This program is available to such public service workers as law enforcement officers, school teachers (pre-K through 12th grade), EMTs, and firefighters. If you’re interested, keep in mind that you must commit to living in the home as your sole residence for at least 36 in order to qualify. 

3. Energy Efficient Mortgage Loan

The Energy Efficient Mortgage (EEM) is insured through both the FHA and VA. This program was created with the purpose of incentivizing buyers to buy a home that is energy efficient or to make energy-efficient improvements on a home they already own. It is applied to the mortgage, but does not affect the down payment.

If you’re interested in assistance with buying an energy-efficient home and saving money on utility costs, this program would be a good fit for you. To qualify, you’ll have to have an energy assessment performed on the home, and this will determine the amount of the loan.

4. HomePath Ready Buyer Program

Administered by Fannie Mae, the HomePath Ready Buyer program is aimed specifically at first-time buyers. Eligible buyers have to complete an online educational course, and then the program pays 3% of the closing costs on the purchase of a Fannie Mae-owned foreclosed home. There is the added benefit of a down payment requirement of as low as 3%.

This program is a good fit for buyers first-time buyers looking to buy a real-estate-owned property and who want/need a low down payment and closing-cost assistance. To qualify, you’ll need to prove low to moderate income, be a first-time buyer, and complete the buyer-education program.

Your Team for More Help to Buy a Home 

These are some excellent and little-known programs to help you buy a home, but they may not be right for you. There are, though, many other possible programs to help you. We have to team of experienced agents who can help with program selection and finding the home that meets your needs. So when you’re ready to buy a home in Kauai, contact us at 808-634-4518.

Connect With Us!

If you're looking to buy or sell a property connect with us today!

How Can We Help You?

We would love to hear from you! Please fill out this form and we will get in touch with you shortly.
    (check all that apply)
  • This field is for validation purposes and should be left unchanged.