American Savings Bank launches first-time home buyer program to address housing crisis
American Savings Bank recently launched “This is HOME,” a new first-of-its-kind affordable financing solution for first-time home buyers designed to help hardworking kamaʻāina buy a home in Hawaiʻi, so they can stay in Hawaiʻi.
As the state and counties place greater emphasis on solving Hawaiʻi’s housing shortage, American Savings Bank’s “This is HOME” program aims to provide the lifeline residents need to get access to financing so they can realize their dream of affordable home ownership in Hawaiʻi.
With a low down payment of 3%, discounted interest rate that will save borrowers hundreds of dollars on their monthly mortgage, lower mortgage insurance requirements and reduced closing costs, “This is HOME” offers a unique combination of benefits that is perfect for residents who can’t save enough for a traditional 20% down payment.
“American Savings Bank is committed to helping solve our state’s growing affordable housing crisis and empowering kamaʻāina to achieve their dream of homeownership in Hawaiʻi,” said Ann Teranishi, president and CEO at American Savings Bank. “‘This is HOME,’ along with our recent $4 million investment in homeownership opportunities for Native Hawaiians to purchase or refinance homes on Hawaiian homelands, is part of American Savings Bank’s ongoing commitment to uplift our community and make homeownership dreams possible for everyone in Hawaiʻi.”
With more Native Hawaiians now living outside of Hawaiʻi than in Hawaiʻi due to skyrocketing home prices, limited inventory and the high cost of living in the islands, the need for affordable housing solutions has never been greater. Many kamaʻāina simply resign to renting or move out of state in search of affordable housing.
According to the Honolulu Board of Realtors, the median sales price in June for a single-family home was $1,050,000 and $510,000 for condos. With a traditional 20% down payment, a buyer would need $210,000 for a single-family home and $102,000 for a condo. “This is HOME” offers expanded income criteria, which provides access to funding for more of Hawaiʻi’s hardworking kamaʻāina.
Benefits of “This is HOME” program:
- Expanded AMI: Available to individuals earning up to 140% of the area median income (AMI), which equates to $169,950 for a family of four or $118,950 for an individual borrower.
- Low Down Payment: Down payment as low as 3%, with only 1% required from the borrower and up to 2% from other sources.
- Lower Monthly Payments: Save hundreds of dollars on a monthly mortgage payment as a result of American Savings Bank’s discounted interest rate, lower mortgage insurance requirement, reduced closing costs and no added fees or pricing adjustments.
- Expanded Financing Eligibility: More properties are eligible for financing, including condos, which are typically restricted in first time home buyer programs.
- Complimentary Housing Counseling: Applicants, regardless of approval, will receive first time home buying resources and support from Hawaiian Community Assets and Hawaiʻi HomeOwnership Center.
To apply or learn more about American Savings Bank’s first time home buyer resources, visit: asbhawaii.com/ThisIsHOME.