What type of property is NOT eligible for a Hula Mae loan?

A Hula Mae loan, which is part of Hawaii's affordable housing programs, is designed to assist individuals in purchasing homes. To be eligible for such a loan, properties typically need to meet certain criteria, particularly in terms of tenure and stability.

Leasehold properties often come with defining features that can affect their long-term investment appeal. Specifically, a leasehold property with less than 35 years remaining on the lease tends to be viewed as less secure. Such a limited time frame impacts the property's marketability and potential resale value, making it a less favorable option for financing through programs like Hula Mae. Lenders associated with Hula Mae loans prioritize properties that hold their value and can be reliably financed to ensure that the investment is sound for both the borrower and the lender.

In contrast, new single-family residences, condominiums, and fee-simple properties are generally more secure and stable, meeting the program's guidelines for financing. These types of properties can provide assurance of ownership and long-term value retention, making them suitable for Hula Mae loans.