County of Kauai

Home Buyer Loan Program
The County’s Home-Buyer Loan Program makes low cost loans to low-income, first-time Home-Buyers on Kauai for the purchase of an existing dwelling unit or the construction of a new dwelling unit to be used as their primary residence.  The County finances its loans with federal funds with the goal to increase home ownership opportunities for lower-income households.  See HUD Income Limits for income eligibility.

Candidates for Home-Buyer Loans take a series of home ownership classes offered by the Housing Agency.  Upon completion of the class, applicants can purchase a home not to exceed HUD’s sale price limit, currently $187,300.  The typical homebuyer is expected to obtain as much financing as possible from a conventional lender, then the County provides the additional mortgage money to complete the purchase at a reduced interest rate and with a seven year deferred repayment period.

Click here for a description of the three different loans available from the County for first time buyers.  The two loans to purchase an existing home require a minimum down payment of 1.5% and the construction loan requires ownership of the site and at least a 25% equity position.   All loans are at 3.0% interest.

Rehabilitation Loan Program
The County’s Residential Rehabilitation Loan Program is to provide low cost loans to benefit low income households on Kauai to rehabilitate the dwelling unit that they occupy as their residence.  The Rehabilitation Loan Program may benefit low-income owner-occupants or landlords who rent to low-income tenants by rehabilitating the low-income beneficiary’s residence.  The property to be rehabilitated may be owned in either a fee simple or leasehold estate, provided adequate security is pledged for the repayment of the loan.  The County administers this federally funded program with the goal to increase the economic life of existing dwelling units, provide energy efficiency, and insure safe and healthy living environments.

This program offers loans in the amounts from $5,000 to 50,000 for 3 to 20 years at 1% to 5% interest.   The term of the loan will depend on the amount borrowed and the interest rate is determined by the borrower’s income.  The repairs and improvements are limited to work necessary to correct defects to extend the physical life of the dwelling, to correct unsafe or unhealthy conditions, and/or provide energy conservation.  Typical work includes construction of another bedroom to reduce overcrowding, improvements to accommodate a resident with a disability, and installation of a solar hot water system. All improvements must be physically attached to the dwelling unit.