Hula Mae Effective 7-11-13
The above limits apply only to fee simple, fully completed units. Leasehold residences and uncompleted units
are subject to certain adjustments in determining their “acquisition cost” as defined by the U.S. Internal
Revenue Service.
Maximum mortgage amounts are subject to Fannie Mae, underwriting guidelines (see your lender for details).
The Purchase Price Limits and Maximum Mortgage Amounts may be: (1) increased by HHFDC for Mortgage
Loans in targeted area residences; or (2) increased or decreased by HHFDC pursuant to the U.S. Internal
Revenue Service guidelines.
What type of property may be purchased?
Homes eligible for mortgages under the Hula Mae Program can be new or existing single-family residences
and townhouse/condominium units. Homes purchased under this Program must be located within the State of
Hawaii.
What about leasehold residences?
For leasehold properties, the remaining term of the lease must be at least 35 years and the lease rent must be
fixed for no less than 10 years from the date of the Mortgage Loan (see your lender for details).
Are there other restrictions?
1. You must be an owner-occupant throughout the term of the Hula Mae Mortgage Loan or until the loan is
paid in full. (This provision is strictly enforced and violation may cause the entire loan balance to become
immediately due.)
2. Hula Mae Mortgage Loans must be secured by the property to be purchased.
3. Hula Mae Mortgage Loans cannot be used to:
a. refinance existing mortgages.
b. convert agreements of sale.
c. purchase fee simple title to leasehold properties.
Are there any restrictions on selling a home that is financed with a Hula Mae Loan?
You will be given a mortgage loan financed with the proceeds of tax-exempt bonds and will receive the benefit
of a lower interest rate than is customarily charged on other mortgage loans. Should you sell or otherwise
dispose of your home within nine years of purchase, this benefit may be “recaptured”. The recapture will be
accomplished by an increase in your federal income taxes for the year in which you sell your home. The
recapture only applies, however, if you sell your home at a gain and if your income increases above specified
levels.
Where can I get more information?
Detailed information about the Hula Mae Program may be obtained from any of the following participating
lenders:
• American Savings Bank (808) 593-1226
• Bank of Hawaii (808) 694-1050
• Castle and Cooke Mortgage, LLC (808) 627-9834
• Central Pacific Bank (808) 356-4000
• First Hawaiian Bank (808) 643-4663
• Honolulu HomeLoans, Inc. (808) 681-7500
Hula Mae Information Line – (808) 587-0567
If you require special needs/auxiliary aids (i.e. large print, taped materials, sign language interpreter, etc.),
call the HHFDC Finance Branch at (808) 587-0567.