Hawaii State FCU launches new loan programs to address rising housing costs

Hawaii State Federal Credit Union has introduced two new loan programs this month to help address the growing affordability challenges in Hawaiʻi’s housing market.

The credit union is now offering a 40-Year Mortgage Loan designed to make homeownership more accessible for first-time buyers by providing a longer-term financing option. Additionally, Hawaii State FCU is the first financial institution in the state to launch the Condo Insurance Relief Loan, a solution that offers fast financial support to members facing increased insurance premiums or unexpected special assessments.

“At Hawaii State FCU, we understand the unique financial challenges that Hawaiʻi residents face, especially in today’s economic environment,” said Andrew Rosen, president and CEO of Hawaii State FCU. “With these new loan programs, our goal is to empower first-time buyers to achieve their dreams of homeownership, while also providing immediate relief to those impacted by escalating costs. These efforts are part of our ongoing dedication to offering meaningful solutions that make a real difference in the lives of our members.”

40-Year Mortgage Loan

Hawaii State FCU’s 40-Year Mortgage Loan offers flexible terms and innovative features to make homeownership more accessible. Key features include:

• Flexible Loan Options: Choose between a 40-year fixed-rate mortgage or a 10/6 Adjustable-Rate Mortgage.
• High Loan-to-Value: Finance up to 95% of the home’s value.
• Gift-Friendly Financing: Allows family contributions toward down payments and closing costs.
• Education Requirement: At least one borrower must complete a homeownership education program.

“While a 40-year mortgage may result in higher overall interest paid over the life of the loan, it offers an immediate and vital pathway to homeownership for individuals who might otherwise be unable to qualify. Additionally, buyers have the flexibility to refinance into a shorter term or lower interest rate when market conditions improve, ensuring this program adapts to their long-term financial goals,” added Rosen. 

Condo Insurance Relief Loan

In response to the escalating costs of condo insurance premiums and special assessments, Hawaii State FCU’s Condo Insurance Relief Loan offers condo owners fast financial relief to support and manage those unexpected expenses with competitive rates and quick funding. Program highlights include:

• Discounted Rates: Currently up to 3% discount off a standard five-year personal loan rates.
• Fast Funding: Designed to provide quick relief for those impacted by rising costs.
• Eligibility Requirement: Members must work with their branch to determine eligibility and qualification amounts.

Both loan programs are available to Hawaii State FCU members as of Jan. 2, 2025. Hawaii State FCU membership is available to more than 500 local organizations, businesses, and all active and retired employees of the State of Hawaiʻi, City and County of Honolulu, and Maui County.

For more information or to apply, visit any Hawaii State FCU branch or go to hawaiistatefcu.com/home-loans/buy-a-home/ or hawaiistatefcu.com/condo-insurance-relief/.