University of Hawaii announces pilot program to assist faculty with purchasing a homeUniversity of Hawaiʻi
VP for Budget and Finance & Chief Financial Officer
HONOLULU — The University of Hawaiʻi announced a new pilot program called the Mortgage Assistance Guaranty Program (MAGP) that will assist with mortgage guaranties for eligible employees. As the result of a competitive bid process, the University of Hawaiʻi has secured an arrangement with Bank of Hawaiʻi, which provides for mortgages with lower down payments, lower closing costs, and favorable interest rates and loan fees for the purchase of a "first" home. The initial program is being made available to UH Mānoa faculty and may be expanded in the future.
"This pilot program is aimed squarely at retention of outstanding UH faculty, who contribute greatly to the social, economic and environmental well-being of our state, particularly in these tough economic times," said UH President David McClain. "If this pilot effort bears fruit, we‘re hopeful that we can expand this concept to other campuses and to a broader spectrum of our employees."
UH President David McClain has authorized $1,600,000 from the University‘s Housing Assistance Revolving Fund to be used to provide guaranties under this pilot program with an additional $500,000 committed from the UH Mānoa School of Ocean and Earth Science and Technology for its faculty. The MAGP is intended to increase the affordability of an initial primary residence for university employees.
The basic program provides a first mortgage up to the lower of 80 percent of the purchase price or appraised value up to a maximum of $625,500. A second mortgage up to 17 percent of the purchase price will be guaranteed up to $125,000 by this program, with the borrower providing the remaining purchase price as down payment. Additional benefits include:
- Reduced loan fees
- Reduced second mortgage interest rates
- No Private Mortgage Insurance requirement
- Free BOH VISA or American Express card
- Free overdraft protection
- Free travelers cheques
- Free cashier‘s checks
The pilot program will be administered through the UH Mānoa Chancellor‘s office. For information regarding eligibility, process and selection criteria, contact Kathy Cutshaw, UH Mānoa vice chancellor for administration, finance and operations at 808-956-9190.
"In these challenging economic times, this is one way in which the University is looking to help our faculty continue to live and work in Hawaiʻi," said UH Mānoa Chancellor Virginia Hinshaw.