FREQUENTLY ASKED QUESTIONS

- What is the relationship between Hawaiian Community Assets and Hawai`i Community Lending?

We are one and the same organization. Hawai`i Community Lending (HCL) is the trade name that Hawaiian Community Assets (HCA) uses for its mortgage lending activities.

- Do you charge for your services?

Our home buyer workshops and counseling services are provided at no cost to our clients. This is possible because our costs are covered by foundation, government and corporation grants and contracts.

In the course of providing these services, we do ask clients to pay the out-of-pocket cost we incur if we order their credit report from a credit bureau. The charge we pass on to the client is typically between $18 and $21.

Our mortgage brokering services do carry fees that are typical in the market for these services. Because we receive no grants or contracts for mortgage lending, the mortgage operation must fully support itself with these broker fees.

- Since you are a nonprofit, are your services less expensive than services provided by for-profit businesses or lenders?

Our education and counseling services are provided at no cost to our clients, and these services are typically not available from for-profit businesses.

The broker fees we charge to originate construction and mortgage loans are similar to fees charged by other mortgage brokers. However, for many of our loan clients, our staff spend significantly more time than do brokers, in providing advice on qualification and in structuring loans. In this sense, our services are more comprehensive. Also, any extra income generated by the lending program is used to help support the free education and counseling programs.

- Who is eligible for HCA's services?

Our mission directs us to focus our services for low- and moderate-income communities and individuals in Hawaii. Currently, the grants and contracts we have - as well as our unique expertise - primarily support our work on Hawaiian Home Lands. However, our work in the community at large is significant and growing.

How do I sign up for a homebuyer workshop?

For information about registering from a workshop on Oahu, Kauai or Molokai, please call (808) 587-7886 or toll-free (800) 576-4718.

For workshops scheduled on Lanai or Maui, please call (808) 760-5100 or toll-free (866) 760-5105.

For information about services on the Big Island, please call our Hilo office at (808) 934-0801.

- What is a credit score?

A credit score is a three digit number that is generated from the information in your credit report. This number plays a very large role in deciding what your interest rate may be when you apply for credit.

- What is a good credit score to have?

If you are looking to borrow money to purchase a home, it will depend on the loan program or loan product the lender may offer you. Credit scores can range from as low as 350 to a perfect score of 850. The higher your credit score, the better your chances of getting a mortgage loan with good interest rates. There are no hard and fast rules that will increase your score, but a good guide is: pay all your bills on time, keep your account balances low and only apply for credit when you need it.

- Where can I get a credit report?

You can log on to www.annualcreditreport.com. This website will provide you with a free credit report from each of the three credit bureaus. As a consumer, you have the right to access your report from each of the credit bureaus at no charge once every 12 months. If you need help understanding your report, contact us and we will be happy to assist you.

- How long does it take to get a mortgage loan?

On average, a mortgage loan usually takes 45-60 days from day of application to closing. There are many reasons why a loan may take longer, so talk to your lender about it. They can give you a good idea of the length of time your loan may take. Remember that you have a part in the loan process, so make sure that you turn in to your lender all the necessary documents and other paperwork to your lender. You also want to make sure that, if the lender needs additional documents, that you supply them as quickly as possible.

- What is "down payment and closing costs" and how much will I need?

A down payment is a percentage of money you commit to your purchase. Closing Costs are those costs that you pay for all the paperwork necessary for your loan. Depending on the type of loan product, you may need as much as 20% of the purchase price or as little as -0-. Your closing costs will also vary, and could be as much 10% or as low as 3% of the loan amount. For example, a loan of $200,000 would require as much as $56,000 or as little as $6,000. Ask your lender what would be required of you at the time you apply for your loan.

- What if I have more questions?

We invite you to use the convenient fill-out form on our Contact Us page.