HAR §6-27-7. Eligibility for another loan; limitations

A member who once had a member home loan or who has an outstanding member home loan shall not be eligible for another member home loan unless both of the following conditions are met: (1) The expiration of two years after the date the system purchased the prior or outstanding loan from the lender: (2) Full satisfaction of the prior or outstanding loan. [Eff 2/9/89] (Auth: HRS §88-28, 88-119.5) (Imp: HRS §88-119.5) §6-27-8 Property qualifying under program; construction by owner. (a) To qualify under the member home loan program, the property securing the loan shall be located in the State of Hawaii and shall be held in fee simple or on an acceptable leasehold upon which there is located: (1) A one- to four-family dwelling or structure which may be attached or detached; §6-27-8 (2) A one-family dwelling unit in a planned development; or (3) A one-family unit in a condominium project or townhouse; occupied or to be occupied by the member as the member’s principal home. The appraisal shall include the value of all improvements but the value of the unit or units not occupied by the member shall be deducted in computing the loan-to-value ratio. (b) The system may refuse to purchase a loan secured by property which is not served by any utilities, lacks or has difficult access to or from a paved public road, does not conform to all applicable zoning and use restrictions, is located on a substandard lot, is a lodging unit, or has any other unusual characteristic which may affect its value. The lender may request the system’s prior written approval as to whether a specific property qualifies for purchase by the system before issuing a loan commitment to the applicant. (c) The system shall not purchase any member home loan made for the construction of or improvements to a principal home, where the construction was done or improvements were made by the owner as contractor. [Eff 2/9/89] (Auth: HRS §§88-28, 88-119.5) (Imp: HRS §§88­ 119, 88-119.5)