HAR §15-314-44. Occupancy

(a) The eligible borrower shall utilize the dwelling unit purchased under this chapter as their principal residence for the term of the eligible loan: Any dwelling unit in which more than fifteen per cent of the total area is reasonably expected to be used primarily in a trade or business shall not be considered a principal residence for purposes of this chapter. (b) From time to time, the corporation may submit a request for verification of owner occupancy form to the eligible borrower. Failure to return the completed form to the corporation in a timely manner may result in an immediate increase in the interest rate charged to the eligible loan up to a rate that shall not exceed the interest rate allowable for loans insured by the Federal Housing Administration or guaranteed by the Veterans Administration or the Farmers Home 314-14 §15-314-44 eligible borrower in the application for an eligible loan to be false; provided that such a statement is necessary for the purchase of mortgages insured by the Federal Housing Administration or guaranteed by the Veterans Administration or the Farmers Home Administration, per the published requirements of each organization, as amended; The corporation may: (1) Increase the interest rate charged to the eligible loan up to a rate that shall not exceed the interest rate allowable for loans insured by the Federal Housing Administration or guaranteed by the Veterans Administration or the Farmers Home Administration at the time that the original loan was made; or (2) Accelerate all payments due under the eligible loan. [Eff MAY 2 3 2025 1 (Auth: HRS §§201H-94, 201H-97) (Imp: HRS §§201H-92, 201H-94)