Partnership between HSTA and HawaiiUSA Federal Credit Union helps lower down payments, closing costs
Posted: February 4, 2022
Crystal, a Kaneohe teacher, was born and raised on Oahu and always dreamed of owning a home. It wasn’t until last June she realized her dream, in part, by using the Hawaii State Teachers Association’s Welcome Home Mortgage program with HawaiiUSA Federal Credit Union.
Crystal, a sixth-grade math and science teacher at Kapunahala Elementary, heard about the program through her primary banking institution, HawaiiUSA Federal Credit Union, which partners with HSTA to help teachers buy homes in the islands. By using the HSTA program, Crystal was able to purchase a townhome in Kaneohe, just 10 minutes away from where she teaches.
The program offers members significant support during the homebuying process, as well as savings on down payment, origination, and closing costs.
“I took advantage of the program to save money,” Crystal said. “I saved about $5,000 during the whole process.”
Instead of having to pay the traditional 20% down payment, HSTA members only have to pay a 3% down payment with mortgage insurance. Buyers can also get a closing cost credit of 1% of the loan amount, leaving more money in members’ pockets.
The homebuying process is notoriously time-consuming and can be overwhelming, but Crystal credits her lender, realtor, and the HSTA program for successfully guiding her through.
She found that one of the most helpful aspects of the HSTA Welcome Home Mortgage Program was attending the two required homeownership classes.
By taking the classes, Crystal said she “actually learned about the contract and what all those things meant. Even though I was already going through the process, I was able to understand a little bit better what everything meant as opposed to some of the other people that were in the process.
“Others had not even started the process or even looked at a contract before. So to me, the classes were super relevant to what I was doing and very helpful,” she added.
When it came time to close on her new property, Crystal said she understood everything in the paperwork.
“I think taking the classes and then utilizing the program and having the same bank all working together really worked out,” she said.
While Crystal admits homeownership in Hawaii for educators is challenging, she said, “It is possible, but it does take a lot of work and a good team.
“Get the help of a realtor, a lending officer or bank, and the support of the union. If it wasn’t for the HSTA homeownership program, I don’t think I would have been able to do it,” she said.
Join us for an informational session
Interested in how the HSTA Welcome Home Mortgage Program can work for you? Join us on Thursday, Feb. 24, from 3:30 to 4:30 p.m. to learn how you can take advantage of as low as 3% down payment with mortgage insurance, reduced origination costs, closing costs, and monthly payments, flexible qualifying ratios and income limits, closing cost credit of 1% of the loan amount, and one-time free interest rate float down.