Proposed Bill Aims To Eliminate Down Payment Barrier To Home Ownership
Hawaii District 17 Representative Gene Ward aims to eliminate the down payment requirement on home buying in newly proposed bill.
“A down payment is the biggest barrier to home ownership in Hawaii and forces almost 50% of our population to be renters all of their lives,” Ward stated in a statement.
The statement also explains that since interest rates are still low, Ward’s proposed bill fits the current economy and housing market.
Existing down payments vary from 5 to 20% of the total house price can still be prohibitive even for the most and Ward says it’s the reason why Hawaii has one of the lowest home-ownership-to-renters ratios in the nation.
Ward’s proposed bill requires homebuyers to meet four criteria to be eligible for a no down payment purchase: a high credit score, a resident of Hawaii for 5 years, employed with sufficient income to meet monthly payments and a first time homebuyer.
“We want to reward the hardworking people of Hawaii with the ability to buy a home rather than moving to the mainland to live the American dream,” said Ward.
“We also hope this will also start a “Kama’aina Come Home” movement to stop the ‘brain drain’ to the mainland and bring back our many families to Hawaii.”