Which situation qualifies for a Hula Mae loan?

A Hula Mae loan is designed to assist individuals in purchasing affordable housing in Hawaii. Specifically, the qualifying criteria for Hula Mae loans include specific stipulations regarding property types and conditions.

The correct choice reflects that a property qualifies for a Hula Mae loan if it is a leasehold property with at least 35 years left on the lease. This is significant because the length of the remaining lease is critical; it ensures that the property will still have substantial remaining value and usability for the borrower during the duration of the lease. The requirements help protect both the borrower and the lender, as a shorter lease might create risks associated with property value depreciation or limitations on the right to occupy.

In contrast, other options like refinancing a high-interest loan or converting an agreement of sale may not fit the specific criteria set by the Hula Mae loan program. These situations do not inherently express a primary focus on the purchase of a qualifying property type under the Hula Mae guidelines. Purchasing the fee title to leasehold property can complicate the transaction structure that Hula Mae loans aim to simplify, often focusing on ownership during the lease duration rather than converting to a fee title.