03.20.17   •   Document Updates

New Documents: HUD Section 247 Loans

In Hawaii, certain lands are owned by the Department of Hawaiian Home Lands (“DHHL”), who leases these lands to Native Hawaiians (http://dhhl.hawaii.gov/hsd/). Approved lenders are permitted to extend mortgage loans to eligible borrowers for such leases. There are a good variety of loans for this purpose, which includes loans insured by HUD under their “Section 247” program (see https://portal.hud.gov/hudportal/HUD?src=/hudprograms/IMHHL).

The details and requirements of this program are set forth in FHA Single Family Handbook 4000.1 II.A.8.b, which also requires the following documents to be completed:

  • A DHHL Mortgage Insurance Program Rider, which amends the lease rather than the mortgage;
  • A DHHL Mortgage Form;
  • A Request for Certification of Eligibility;
  • A Certificate of Eligibility, issued by DHHL;
  • A copy of the recorded homestead lease, provided by DHHL (these leases are recorded with DHHL, rather than the Bureau of Conveyances); and
  • A Consent to Mortgage, issued by the Chairman of the Hawaiian Homes Commission.

To support this program, we will be providing the following new documents:

  • Section 247 Hawaiian Home Lands Request for Certification of Eligibility (Cx16082). This document is a duplicate of the “Request for Certification of Eligibility” available on DHHL’s website (http://dhhl.hawaii.gov/hsd/loans/). It will print under the following conditions:
    • State Code = Hawaii
    • FHA Section Code = 247
    • Document Package Type = Initial Disclosure

We will also be modifying our standard “FHA HI Mortgage” (Cx19369) to print the caption “HAWAIIAN HOME LANDS” under the title “MORTGAGE” when “FHA Section Code” equals “247.”

These changes will take effect on March 25, 2017. If you have questions or concerns about these changes, please contact Client Support at 1.800.497.3584.

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