ASB mortgage options to expand affordable home ownership access to Native Hawaiians

American Savings Bank is now approved by the US Department of Housing and Urban Development to provide HUD 184A and FHA 247 loans to the Native Hawaiian community.

The loan programs are designed to provide affordable financing options to Native Hawaiians for the purchase and refinance of homes on Department of Hawaiian Home Lands leased land.

“We are passionate about uplifting our local community through meaningful financial support and guidance,” said Ann Teranishi, president and CEO at ASB. “Our new loan programs allow us to further our commitment to building a better, stronger Hawaii by expanding access to affordable homeownership.”

The loan programs offer low down payment options, no annual mortgage insurance premiums, flexible underwriting and more. These benefits aim to help Native Hawaiians build wealth and restore ties to Hawaiian home lands through sustainable homeownership.

“It’s disheartening to see so many applicants turn down a lease award because they think they’re unable to qualify for financing or don’t have enough money for a down payment,” said Kali Watson, commission chair at DHHL. “These loan programs, combined with the recent $600 million allocation from the State, will provide much-needed housing opportunities and support for Hawaiians.”

According to a 2020 DHHL survey, nearly 22% of residential applicants indicated that financing was the most important factor when considering accepting their lease award. In the same survey, DHHL identified that 40% of applicants who “may be qualified” for financing did not apply for a mortgage. 

ASB’s New Loan Programs

The new loan programs further strengthen ASB’s existing commitment to providing affordable housing resources, which includes investments in 25+ low-income housing projects in Hawaiʻi. These investments include:

• $9.2 million in Kaiaulu O Waikoloa, a multi-family apartment development in Waikoloa, Hawaii Island, with 60 units for residents with a 30-60% Area Medium Income (AMI)
• $8.3 million in Kaiaulu O Halelea, a multi-family rental community that will offer 56 living units to residents with a 30-60% AMI
• $9.3 million in Kaiaulu O Kukuia, an affordable workforce housing development in Lahaina, Maui, consisting of 100 two-bedroom, 75 three-bedroom and 25 four-bedroom units for residents earning 30-60% AMI
• $20.4 million in Halewaiolu Senior Residences, a new construction with 156 units in the heart of Downtown Honolulu

In addition to the new loan programs, ASB provides a wide range of services and products, including free online courses, financial calculators and more.

For more information about ASB’s HUD 184A and FHA 247 loan programs, click here.