City expands opportunities for homeownership and home rehabilitation through Zero-Interest Loan Programs

HONOLULU – In recognition of National Homeownership Month, the City and County of Honolulu Department of Community Services (DCS) is encouraging eligible Oʻahu residents to explore two programs designed to make housing more attainable and sustainable: the City’s Down Payment Loan Program and Rehabilitation Loan Program.

The programs provide financial assistance to income-qualified households earning 80% or less of the Area Median Income for Oʻahu and are intended to help residents achieve homeownership, preserve existing housing, and remain safely housed in their communities.

“One of the biggest challenges facing local families today is the cost of housing,” said Mayor Rick Blangiardi. “We know that for many people, the dream of owning a home can feel out of reach, and for others, keeping up with major repairs can be a financial burden. These programs are designed to help. Whether it’s assisting a first-time homebuyer or helping a family make critical repairs so they can remain in the home they love, we’re creating opportunities for local residents to put down roots, build stability, and stay in the communities that make Oʻahu special.”

The Down Payment Loan Program assists eligible first-time homebuyers with up to $40,000 toward the purchase of a home. The loan carries a zero percent interest rate, has no loan fees, and is repaid over a 20-year term. Applicants must complete a City-approved homebuyer education course and occupy the property as their primary residence during the life of the loan.

The Rehabilitation Loan Program helps eligible owner-occupant homeowners address health, safety, and structural issues within their homes. Loans of up to $300,000 are available at zero percent interest, with larger amounts considered on a case-by-case basis. Funds may be used for repairs such as roof replacement, termite damage, wood rot, electrical rewiring, plumbing improvements, and accessibility modifications for household members with disabilities.

“These programs do more than provide financial assistance,” said Anton Krucky, Director of the Department of Community Services. “They represent an investment in people. By helping families achieve homeownership and helping homeowners preserve and improve their homes, we are creating opportunities for greater stability, stronger neighborhoods, and a future where more Oʻahu residents have the opportunity to thrive.”

Loans are available on a first-come, first-served basis, subject to eligibility requirements and funding availability.

As part of the Rehabilitation Loan Program, City inspectors provide technical assistance at no cost to homeowners, including property inspections, repair cost estimates, construction guidance, and oversight throughout the repair process.

Down Payment Loan Program Highlights
· Available to prospective homebuyers who do not currently own a primary residential property.
· Household income must be below 80% of Area Median Income for Oʻahu.
· Up to $40,000 in assistance.
· Zero percent interest and no loan fees.
· Repayment over a 20-year term.
· Homebuyer education course required.
· Loans are available on a first-come, first-served basis, subject to funding availability.

Rehabilitation Loan Program Highlights
· Available to owner-occupant homeowners.
· Household income must be below 80% of Area Median Income for Oʻahu.
· Loans up to $300,000, with larger amounts considered on a case-by-case basis.
· Zero percent interest.
· Eligible repairs include roofing, termite damage, electrical, plumbing, structural repairs, and accessibility modifications.
· Free inspection and construction oversight services provided by City staff.

How to Apply
Down Payment Loan Program
Applicants should first obtain conditional approval from their primary mortgage lender. The lender will then submit a loan package to the City for review and approval.

Rehabilitation Loan Program
To request an application, call (808) 768-7076. Or to learn more about both Loan Programs, visit the Department of Community Services website https://www.honolulu.gov/dcs/dcs-cad-loan-programs-for-homeowners/

National Homeownership Month is observed each June to highlight the importance of homeownership and expand access to housing opportunities for families and individuals across the country. The City encourages eligible residents to learn more about both programs and determine whether they qualify for assistance.

—PAU—