HAR §15-317-2. Definitions

As used in this chapter: "Annualized gross income" means the gross monthly income of an eligible borrower (or borrowers) multiplied by twelve. “Bonds” means the tax-exempt or taxable single-family mortgage revenue bonds issued to finance eligible loans under this chapter. "Corporation" means the Hawaii housing finance and development corporation established under chapter 201H, HRS. "Dwelling unit" means a single family residence as provided by section 143(k) of the Internal Revenue Code of 1986, as amended. "Eligible borrower" means a person who: (1) Is a citizen of the United States or a resident alien; (2) Is at least eighteen years of age; (3) Is a bona fide resident of the State; (4) Will physically reside in the residential property to be purchased for the term of the loan; (5) Is accepted by a mortgage lender as a person to whom the mortgage lender is willing to lend money for the purchase of the residential property; provided that the required downpayment is made; (6) Provides a portion of the downpayment that shall be equal to [at least five]three per cent of the sales price[;] and may include any downpayment loan assistance made available by the corporation under this chapter; and (7) Has successfully completed a homeownership counseling program provided by a housing counseling agency approved by the United States Department of Housing and Urban Development; (8) Will physically reside in the residential property to be purchased, as the borrower’s principal residence; (9) Does not own in fee simple or in leasehold any other 317-3 residential property within the State; (10) Does not have annualized gross income that exceeds the income limit set forth in this section; (11) Does not personally, or whose spouse does not if the person is married, own any interest in a principal residence within or without the State, and who has not owned a principal residence within the three years immediately prior to the application for an eligible loan under this subpart, except this requirement shall not apply to any eligible loan that meets the requirements of section 143(d) of the Internal Revenue Code of 1986, as amended; (12) Has not previously been provided a loan under this chapter or chapter 15-169, except in cases of extreme hardship, divorce, etc., as determined by the corporation; and (13) Has timely received recapture notices from the corporation, from the mortgage lender, or from a non-profit organization, if applicable. "Eligible loan" means any residential dwelling unit second mortgage loan made to an eligible borrower [for a downpayment] under this chapter. "Escrow company" means a disinterested third party that holds money or documents, or both, until the terms and conditions of sale between the homebuyer and the seller have been satisfied. "Homeownership counseling" means housing counseling relating to homeownership and residential mortgage loans when provided in connection with the United States Department of Housing and Urban Development’s housing counseling program. "Income limit" means the annualized gross income limit established by the corporation based on the limits imposed by section 143(f) of the Internal Revenue Code of 1986, as amended. “Loan type” means the specific regulatory framework, underwriting guidelines, and financing backing that governs how a mortgage is processed and insured. “Maximum arbitrage limitation” means the yield restrictions outlined in United States Treasury Regulation § 1.148-2, as amended. "Mortgage lender" means any bank, trust company, savings bank, national banking association, savings and loan association, building and loan association, mortgage banker, credit union, insurance company, or any other financial institution, or a holding company for any of the foregoing, that: (1) Is authorized to do business in the State; 317-4 (2) Customarily provides service or otherwise aids in the financing of mortgages on single family or multifamily residential property; and (3) Is a financial institution whose accounts are federally insured or is an institution that is an approved mortgagee for the Federal Housing Administration, an approved lender for the United States Department of Veterans Affairs or the United States Department of Agriculture, or an approved mortgage loan servicer for the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. "Nonprofit organization" has the same meaning as defined in section 454F-1, HRS. "Recapture notices" means the notices to an eligible borrower that meet the requirements of section 143(m) of the Internal Revenue Code of 1986, as amended. [Eff ] (Auth: HRS §§201H-4, 201H-161)(Imp: HRS §§201H-161, 201H-162)